Rebuilding our Fiscal Foundation: Revenue Reform 2011

THE ISSUE

We believe that all men, women, and children in Massachusetts deserve healthy lives, healthy families, access to quality education, safe, vibrant communities, and broadly shared prosperity in a thriving state.

The public structures that make these priorities possible can only be built and maintained when we work together, and base them on a balanced, stable, and adequate fiscal foundation.

Unfortunately, Massachusetts, along with states across the country, currently faces a multi-billion dollar structural deficit.

This deficit is due to a decade of state tax cuts compounding the recent national recession. For more information on our state's budget, check out The State Budget: Difficult Choices and Our Future, a presentation from the Massachusetts Budget and Policy Center.

THE ACTION

We are endorsing the "Act to Invest in Our Communities" sponsored by Rep. James O'Day and Sen. Sonia Chang-Diaz [House Docket 02261 & Senate Docket 1012] because we believe this bill is a step forward in creating a more equitable tax system for all and in addressing our current revenue shortfall. [Info Sheet - PDF]

The act proposes an increase in the income tax rate from 5.3% to 5.95%, including an increase in personal exemptions from $4,400 (single) / $8,800 (married) to $7,900 (single) / $15,800 (married). It also proposes an increase of the dividends and interests rate from 5.3% to 8.95%, with an exemption for low and middle income seniors and disabled persons.

The proposal would yield up to 1.2 billion dollars, necessary to taking a more balanced approach to the current budget gap and continuing to support our public structures. [Department of Revenue Analysis - PDF]

Representatives from organizations around the state have agreed to meet with legislators and poll them about their support for possible revenue options that would close the state’s budget gap.

If you or your organization is holding a meeting with a legislator or participating in such a meeting, please review the linked materials:

1. Organizing Legislative Meetings [PDF]
2. Questionnaire for Legislators [PDF] (Please complete this form after meeting with your legislator(s) and return a copy to ONE Massachusetts.)
3. Potential State Revenue Changes [PDF]
4. Info Sheet en Espanol [PDF]

We will be reaching out to additional groups across the state. Let us know whether there are any groups anywhere in the state that we should contact.

For more information, please contact Yawu Miller - yawu[at]realclout.org or 617-275-2918.