What are folks looking at for tax increases at the local level?
Here in Massachusetts, where the unemployment rate has risen to 4.4%, the housing market is still strong, car sales are still strong, in this terrible economy we face a $2 billion state budget shortfall. It’s scandalous but true. Imagine if we had a real unemployment problem, cars sales were in the tank, and home sales were falling along with prices.
Considerations on the table to close the gap include raising the state income tax from 5.3% to 5.95%, raising the sales tax from 5% to 6% or 7%, raising the capital gains tax rate, and eliminating deductions for charitable giving.
At the local level we also face a shortfall and a drop in state support adds to the problem. Here we are facing property tax overrides, fees to send students to public schools, and increases in auto excise taxes. To send a student to a public school we pay $250 for busing and fees for extra curricular activities. Some families pay $2,000 to $3,000 per student, but the average is closer to $1,000. There certainly is not equal opportunity for children.
Add it all up and we face about a 20% tax increase this year. Not exactly conducive to recovery. Eats up more than the feds are giving back. Yet for some reason John Q. is all for it. Rather than asking why we understand that the sky is falling and it’s our $2,000 that must save the day. |
