Before I leave the topic of elections (see yesterday’s post), one quick note on a local ballot initiative here, Question 1. First, let me set the stage by confessing that despite my kashi-eating, Obama-voting, green-energy exterior, I am a fiscal conservative. In my late twenties, I took a sudden interest in economics, did a lot of reading, attended night-school, and actually got accepted to a PhD program. Ultimately I did not go, for I reason I call “third pregnancy” (he was worth it). But then I served for 3 years on my town’s Finance Committee and got a practical look at how government spending goes.
Question 1 proposed elimination of the income tax in Massachusetts. I have lived in states, such as Washington state, that have no income tax. It was nice. Mass. voters had previously voted to have income tax drop from 5.85% to 5.3% and the state never got there. By the way, they skim from capital gains here, too. So I was open to the idea of booting the tax. We pay 5% sales tax. The estimate was that state revenue drop by 40%.
I wasn’t sure if this was a good idea, but I was open to it. It was clear whether the sales tax would be raised (WA has 8% I believe) and whether that was regressive. More discussion was needed — the sponsors would have benefited from taking another year to increase communication.
But then the ads came out! Question 1 was deemed “irresponsible” and “reckless”. Really? Tell that to Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. The opposition was able to collect a lot more support (from state workers, etc.) and outspend the sponsors 10-1.
From Boston.com:
“The Coalition for Our Communities, which led the opposition to Question 1, outspent the question’s sponsors by a roughly 10-to-1 margin. That enabled them to pay for a flurry of TV ads and a sophisticated voter ID effort to identify likely and swing voters. Among other tactics, they sent full-color, personalized mailers that incorporated a voter’s name and community into the images and warned of specific local cuts.”
A lot of my peers became concerned about an end result of raised property taxes, because that’s what COC advertised. It was a brilliant campaign, for people dislike property taxes too. They worried about teacher layoffs, police layoffs — utter community breakdown. But here’s the thing: it was a bit misleading, and it presupposed that property taxes are bad.
Your local (property) taxes are the very best taxes you pay, for they cover schools, police, fire, library, roads, trash collection, town parks — your daily life in community. Moreover, local taxes are under a lot of local scrutiny. There are no Diane Wilkerson’s in our town of 13,500. Honestly. I have served for 9 years and while we don’t always agree, I can assure you we are always honest and law-abiding. We are responsible to our neighbors, who check in with us at meetings, at the bus stop, and the grocery store. There is a lot of intentional and unintentional oversight.
Your state taxes pay for state roads and bridges, state government employees, state parks, some income redistribution around schools, state prisons, and a host of pet projects of dubious value. In our town we don’t get a big kickback from the state, since we don’t qualify for much under their formula. Lowell, Lawrence, Springfield, Boston, and New Bedford get extra money for their school systems.
In conclusion, our property taxes would not go up much, here. Also, we are restricted by Prop 2 1/2 from raising the total tax collection more than 2.5 % year-to-year. And if they did go up? Would that be so bad, if it was mitigated by state taxes going down? It would bring government to more local control, which has more integrity, and is more responsive. What’s wrong with that??
It’s worth discussing, and I was disappointed at how many people quickly dismissed the initiative as “reckless”. Our town government is the least reckless government we have.