Monday, January 22- Local/State/National Affairs

1/21/07

On January 17, 2007 the Boston Globe published an article titled "State likely to freeze tax exemption: Analysts Cite Slow Growth in Revenue." The article begins by educating readers, "for the first time in four years, Massachusetts taxpayers will not receive a higher personal tax exemption in 2008 under current projections, a sign of slowing economy..." In 2005 the tax revenue increased to 7.1%, compared to 6.6% in 2004. In 2006, it projected up to 8.2% from 7.1%, and suddenly this year it is estimated that it will drop to 3.0%. My question is, why the sudden change?
As a member of the upcoming generation of Massachusetts taxpayers, I do not feel confident that our economy is entirely safe. Analysts state that the loss in revenue may be high enough that Deval Patrick may not be able to keep his promises of hiring 1,000 new police officers or expanding full day kindergarten. This takes a toll on all of the state, such as the men who will be employed with these jobs rather than just the people in the state feeling safer with 1,000 more police officers. Expanding full day kindergarten would perhaps save some parents a bit more money a year on day care, children would have the opportunity to learn more, and teachers would also be making a higher income. A drop in revenue resulting in a freeze in tax exemption affects everyone within the state and I believe that we should be given answers to how it is going to be resolved. So far, we are told that lawmakers are thinking of legalizing gambling on increasing gas tax as new revenue sources. Not only do I think this will be unsuccessful in raising the economy, but legalizing gambling would cause the economy to drop unbelievably quickly. People that never thought they would have an addiction would begin to have one, as gambling is a huge problem in this country. This means these people would not have the money to buy, and so this would not help the state revenue at all. I think it would make it incredibly worse. Increasing gas tax will only aggrevate residents of Massachusetts, especially the taxpayers of this generation. Gas prices are already at an all-time high, we do not need anymore of our income going towards this gas. Also, more and more people are turning to hybrid vehicles as it is, since gas prices are so high, therefore it would not result in increasing revenue at a such a rate it may have some years ago.
Perhaps I am a bit too negative, but it seems to me that lawmakers are not taking any consideration into their ideas and the overall affects that they may have on our economy past this revenue issue. Maybe they will work out this issue soon enough, but if we are being denied money we have been promised in the past, I think they owe us to think of our future, and the future of the children in this perhaps soon to be casino-run state.

The information for this blog was taken from the article located at the following web address:

http://www.boston.com/news/local/articles/2007/01/17/state_likely_to_freeze_tax_exemption/