Patrick touts $1.9 billion tax proposal

By Allison Thomasseau

Statehouse Correspondent

BOSTON — Gov. Deval Patrick, in a rare public appearance before the Joint Committee on Ways and Means, pushed for his $1.9 billion tax proposal on Friday, pitching it as a way to stimulate economic growth and make investments for the state’s future.

“It’s what we need to be economically strong in the future,” Patrick said at the final budget hearing in the Statehouse’s Gardner Auditorium. “If we want to grow, we need to invest.”

More than 30 advocacy groups also testified at the committee’s final hearing on the governor’s $34.8 billion budget, parts of the budget plan that would benefit their interests while criticizing the elimination of deductions on household expenses such as lead-paint removal.

Patrick’s cabinet, including Matthew Malone, education secretary, Richard Davey, transportation secretary, and Glen Shor, secretary for the executive office of administration and finance, also spoke.

Patrick’s plan would raise the personal income tax from 5.25 percent to 6.25 percent, lowering the sales tax from 6.25 percent to 4.5 percent, double the personal exemption, and eliminate 44 other exemptions.

Some advocacy groups, including The Greater Boston Interfaith Organization, which represents 45 Greater Boston congregations, testified in support of the governor’s revenue-raising plan.

“We are willing to pay our share of the taxes, because that’s what good, responsible communities

do,” Burns Stanfield, the organization’s president, told the committee.

Faith Perry, co-chair of the organization’s new, fair revenue team, said the governor’s proposal would allow investment in education and transportation while still helping low-income families.

“We have to ask that it be done in a progressive way by increasing the income tax and the personal exemption,” Perry said in an interview before the hearing.

Many advocacy groups, including the Massachusetts Association of Realtors and the Massachusetts Audubon Society, protested specific budget cuts or the elimination of proposed tax deductions, such as removing lead paint and replacing a septic system. But the committee urged advocates to analyze the revenue proposal in more broad terms.

“It’s important to think of this as a holistic package,” said Rep. Carl Sciortino, D-Medford, a committee member.

Patrick acknowledged that the Legislature may change some tax components, such as his proposed gas tax increase, but he encouraged committee members to agree on the goals of additional funding for education and transportation.

Patrick’s proposed gas tax would tie the tax to inflation, gradually raising it over time. The current gas tax is 21 cents per gallon and has not been increased in two decades.

The governor highlighted massive EBT welfare- payment reform as a success, but area legislators are still divided over whether the budget should focus on reform or revenue.

Some legislators, including Reps. Tom Golden and Kevin Murphy, both Lowell Democrats, have said in the past that more program reform of welfare and transportation is necessary.

Sen. Eileen Donoghue, D-Lowell, said her constituents worry they may not see the benefits of new revenue.

“People want to know that we’re being vigilant about reform, and we want to be forcefully getting that message out,” said Donoghue, who serves on the committee.

Patrick acknowledged that “new revenue does not let any of us off the hook of reforming state government,” but he still sees increased tax revenue as the only way to achieve the state’s transportation and education goals.

“Reform alone is not enough to pay for 21st century transportation and education,” Patrick said.

The House Ways and Means Committee will come out with its version of the budget on April 10.

Leave a Reply