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The Return of the Grad-Tax Hustle
Townhall.com ^ | July 29, 2015 | Jeff Jacoby

Posted on 07/29/2015 11:20:09 AM PDT by Kaslin

FIVE TIMES — in 1962, 1968, 1972, 1976, and 1994 — Massachusetts voters have been asked to jettison their state's flat-rate income tax and replace it with a system of graduated tax brackets. Each time they have unequivocally refused to do so.

After that many rejections, even the most importunate suitor usually gets the message. But for some liberal true believers, all can never be right with the world as long as Article 44 of the Massachusetts Constitution commands that taxes "shall be levied at a uniform rate throughout the commonwealth upon incomes derived from the same class of property."

So here we go again. Raise Up Massachusetts, a coalition of left-wing activists, labor unions, and "social-justice" advocacy groups, is gearing up to put yet another graduated income-tax amendment on the ballot. As always, they will preach the virtue of picking other people's pockets, promising lots and lots of expensive goodies at no cost to anyone but millionaires.

More than a century ago, the Legislature recognized the fundamental inequity of imposing higher marginal tax rates on higher incomes, a perpetual invitation to class warfare. Lawmakers refused to allow the practice in Massachusetts, even as most other jurisdictions embraced it, and they went so far as to write that prohibition into the state constitution. Plainly it is a stance that has stood the test of time, having been reconfirmed at the polls on five separate occasions.

Still, liberal Democrats like state Senator Jamie Eldridge, who has filed a constitutional amendment to overturn Article 44 and mandate graduated income tax rates, hope the sixth time will be the charm. Like every grad-tax advocate, his pitch is one part soak-the-rich envy, one part government-spending wish list, and one part feel-their-pain con job. Some concoctions improve with age. This isn't one of them.

"Few people would consider a tax system to be fair if the poorer you are, the more of your income you pay in taxes – and yet that's exactly what the Massachusetts tax system currently does," argues Eldridge. Switching to progressive tax brackets, he says, could "potentially" mean "lower taxes for the majority of Massachusetts residents." And all it requires is "asking a small percentage of residents with very high income to pay their fair share."

If Eldridge and his fellow legislators really yearn to lower taxes, they can do so any day of the week. But broad-based tax relief isn't what the grad-tax lobby hungers for. On the contrary: The grad-taxers' goal, as WGBH radio and TV personality Jim Braude has written, is to "make it easier for the Legislature to raise taxes when they need to." Braude should know — as the former director of the Tax Equity Alliance of Massachusetts, he ran the "Yes" campaign the last time a graduated income tax amendment was on the ballot. (It was crushed in a 2-1 landslide.)

Notwithstanding their rhetoric about "fairness" and the disproportionate share of income paid by the poor to the tax man, the activists evade the simple fact that of all the taxes levied in Massachusetts — on income, sales, meals, gasoline, tobacco, liquor, and property — the income tax is already the most progressive.— in 1962, 1968, 1972, 1976, and 1994 —Massachusetts voters have been asked to jettison their state's flat-rate income tax and replace it with a system of graduated tax brackets. Each time they have unequivocally refused to do so.

According to Department of Revenue data, all the other state taxes take a much larger bite out of lower- and middle-income residents' earnings than out of those in the highest income bracket. For example, taxpayers in the bottom income quintile lose 7.5 percent of their income to sales taxes; for taxpayers in the top quintile, the comparable figure is 0.8 percent.

The state income tax is different. Though there is a single flat rate for regular income (currently 5.15 percent), there are also exemptions, credits, and deductions skewed to ease the tax burden on low-income earners, as well as a much higher tax rate on capital gains (12 percent), which overwhelmingly affects high-income earners. As a result, the effective income tax rate for taxpayers in the bottom fifth is only 0.6 percent. For those in the middle fifth, it's 3.6 percent. For the top fifth, 4.75 percent. Progressivity defined.

What's more, taxpayers making $100,000 and up contribute a whopping 70 percent of the state's income tax revenues. Those making $50,000 or less? Only 11 percent.

Massachusetts voters have always seen through the grad-tax hustle. Five times they've said no. If that wasn't clear enough, we can always make it six.


TOPICS: Culture/Society; Editorial
KEYWORDS:

1 posted on 07/29/2015 11:20:09 AM PDT by Kaslin
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To: Kaslin

How long as Massachusetts been known as Taxachusetts?


2 posted on 07/29/2015 11:23:54 AM PDT by BlackAdderess ("Give me a but a firm spot on which to stand, and I shall move the earth". --Archimedes)
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To: Kaslin

If the voters of Massachusetts were a single woman, this would be referred to as stalking.

And if the legislature implements this, it would be known as rape.

No means NO!


3 posted on 07/29/2015 11:26:03 AM PDT by DoughtyOne (Now remember honey, if you can't remember your name, just tell the police JEB. John Ellis "Jeb" Bush)
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To: Kaslin

Plank #2 of Karl Marx’s Communist Manifesto is a heavily-graduated income tax.

http://www.libertyzone.com/Communist-Manifesto-Planks.html

Just saying.


4 posted on 07/29/2015 11:26:19 AM PDT by E. Pluribus Unum (To defeat the democRATs, we must first defeat the Republicans.)
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To: Kaslin

I made a mistake of having a refund due when I filed my Massachusetts taxes in early April. When I called last week I was told they were still working on it.


5 posted on 07/29/2015 11:27:39 AM PDT by AU72
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To: Kaslin
Why the war on the rich in the first place? As a retired teacher, I've tried poor and I wouldn't mind trying rich, but I don't think it's going to happen. So, why is Obozo always complaining about "those fat cats who take advantage of the tax code". Really? You and your dumb-ass colleagues are the idiots who wrote a tax code that is so bloated and complex that no one understands it.

Another question: How many of you were hired by a poor person? Like it or not, it is the people with money who drive this economic system and taking it away from them and giving it to a bunch of unproductive parasites helps no one. If the rich are doing well, the rest of the economy usually is, too. There's a kernel of truth to the saying: "A rising tide lifts all boats".

Obozo and the rest of the liberals think the only way to make the poor better off is to take it away from the rich. Stupid thinking. If the poor consistently get only 10% of the economic pie, but economic growth causes the pie to double in size, the poor's income will also double. Still, the poor will paint themselves as victims of an unfair system and yell for more free stuff even though their standard of living is higher than about 90% of the people in the world. They just never shut up and the politicians buy their votes with our money.

6 posted on 07/29/2015 11:35:56 AM PDT by econjack (I'm not bossy...I just know what you should be doing.)
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To: Kaslin
Massachusetts voters have been asked to jettison their state's flat-rate income tax and replace it with a system of graduated tax brackets. Each time they have unequivocally refused to do so.

Voters who love to p*$$ in the nation's water supply but won't p*$$ in their own.

7 posted on 07/29/2015 11:36:24 AM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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