Briefing: Sales Tax Rollback Proposal
This November, Massachusetts voters will decide whether to reduce the state’s sales tax from 6.25 percent to 3 percent. Supporters say Ballot Question 3 would let state residents keep desperately needed money, while opponents charge that it will undermine education, public safety and other core government services.
What would the proposal mean for the budget?
In a report attacking the ballot measure, the business-backed Massachusetts Taxpayer Foundation says the tax cut would reduce state funds by $2.5 billion next year, increasing the projected budget deficit from $2 billion to $4.5 billion. The MTF says that would mean a 28.4 percent cut in discretionary state spending, slashing local aid for education, fire and police forces and other services.
The group behind the ballot question, the libertarian-oriented Alliance to Roll Back Taxes, says that analysis ignores wasteful government spending that could be eliminated.
How much would it save taxpayers?
The alliance says it would give back an average $688 per worker, or more than $900 per household. The group also says it would create more than 33,000 jobs, especially along state lines where customers often cross borders to do their shopping in whichever state has lower taxes.
What do voters think?
A poll by State House News Service released earlier this month found that 54 percent of residents supported the rollback, while 44 percent opposed it.
How are the supporters and opponents funded?
The alliance has received $236,000 and spent $219,000 as of Sept. 15. The organization opposing the measure, the Massachusetts Coalition for Our Communities, received $1.5 million and spent $508,000 over the same period. The alliance is supported mainly by individuals, while most contributions to the coalition came from teachers’ unions.
What do politicians think?
All four candidates for governor oppose the measure, although Republican Charlie Baker says he would reduce sales, income and corporate taxes to 5 percent.
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