This morning’s Boston Globe features an editorial in favor of Governor Patrick’s plan to levy a sales tax on soda and candy.
I disagree strongly with their rationale in favor of the tax.
The Globe editorial is centered around a belief that raising taxes is a good way to encourage social behavior; in this case, deterring children and obese adults from eating too much soda and candy. It suggests that reducing intake of soda and candy would have numerous health benefits, including possibly lowering the risk of cancer. The editorial also suggests optimistically that other, similar steps to reduce the consumption of unhealthy items could come in the future.
Even if all of the Globe’s facts and markers about nutrition are correct (I don’t argue with them here), I still think this tax is a bad idea. It’s the latest in a series of proposals on Beacon Hill that use arguments smacking of paternalism to justify taxes and spending that taxpayers can’t (and shouldn’t have to) afford. And that’s wrong.
First, state leaders wanted to raise the gas tax as a way to encourage conservation… and, of course, to help balance the state budget without making further spending cuts. Some wanted to raise the cigarette tax to discourage smoking… and to preserve spending that otherwise would have to be cut. Now, they want to take the first step in taxing foods on the basis of their nutritional value… supposedly as a way to encourage healthy eating, but also as a way to pay for health programs that we otherwise can’t afford.
These are all mixed messages for taxpayers, but in the end, the message is clear: government wants to tell people what to do, and it expects people to pay extra for it.
I believe government does a disservice to those it represents whenever it views taxes as anything more than the necessary price taxpayers need to pay for core government services and priorities. Using taxes as a way for government to exert itself over wholly-private decisions, like what people should eat, is just as bad as using taxes to pay for government spending that’s not essential to run our state.
What do you think? Is taxing people for their consumption of unhealthy foods a good idea, or is it just plain wrong? Please post a comment below and let me know your thoughts.
Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts
Thursday, February 18, 2010
Wednesday, February 17, 2010
Thought of the Day - 02/17/2010
Yesterday, all the major candidates in the race for Governor – except the Governor himself – actually agreed that the state sales tax should be rolled back.
As the Boston Herald points out today, the candidates had different views on what should happen afterwards. But there was consensus among them that the sales tax increase from 5 percent to 6.25 percent needs to be undone.
Then, there is Governor Patrick. He not only thinks that the sales tax should remain at its current level until tax revenues pick up again, he also proposes additional tax increases on certain consumer products like candy bars this year.
Our elected officials need to remember something very important. Raising taxes during a recession is a bad idea. Instead of turning to taxpayers for more money when revenues plummet, government needs to learn to live within its means. The decisions might be difficult to make, but cutting back on the size and scope of government is the only way to solve our revenue problems, and the first place to start is to trim waste and inefficiency through comprehensive reforms.
The state budget process for Fiscal Year 2011 is well underway, and it will present a huge opportunity for our state to address some of these problems. Hopefully, there will be room for lots of creative solutions and solid ideas to reform state government. I know that’s what I will be looking for, and I will keep you informed of what happens throughout the process.
As the Boston Herald points out today, the candidates had different views on what should happen afterwards. But there was consensus among them that the sales tax increase from 5 percent to 6.25 percent needs to be undone.
Then, there is Governor Patrick. He not only thinks that the sales tax should remain at its current level until tax revenues pick up again, he also proposes additional tax increases on certain consumer products like candy bars this year.
Our elected officials need to remember something very important. Raising taxes during a recession is a bad idea. Instead of turning to taxpayers for more money when revenues plummet, government needs to learn to live within its means. The decisions might be difficult to make, but cutting back on the size and scope of government is the only way to solve our revenue problems, and the first place to start is to trim waste and inefficiency through comprehensive reforms.
The state budget process for Fiscal Year 2011 is well underway, and it will present a huge opportunity for our state to address some of these problems. Hopefully, there will be room for lots of creative solutions and solid ideas to reform state government. I know that’s what I will be looking for, and I will keep you informed of what happens throughout the process.
Thursday, February 11, 2010
Thought of the Day - 02/11/2010
There’s been lots of talk lately about the best way to stimulate our economy in Massachusetts and how to grow jobs here. As well there should be; this is the number one issue facing many Massachusetts residents these days.
I continue to believe that what we need to do is to make our state more competitive for businesses by lowering their costs of doing business here. And one of the best ways to do that is to make our tax system fair.
The other day, Governor Patrick proposed tax credits for small businesses and job creation in our state. These credits are worthwhile proposals but they seem like small steps forward in a much larger effort, especially when you consider recent hefty increases in the sales tax and corporate excise tax.
There is growing evidence that tax policy works to lure businesses here. For example, today’s Boston Globe has a story about a tax credit allotted to the film industry in 2005. The story says the tax credit has the potential to create a “small but robust film industry” here and to “support thousands of good-paying jobs.”
It’s particularly interesting that the study shows that Massachusetts has been more successful than other states that also offer tax credits because we have a better infrastructure and a more talented workforce in place for moviemakers to utilize. In other words, it suggests that the film industry was always willing to consider Massachusetts as a venue for its business because of what we have to offer, but the cost of doing business here was too high. Once we lowered the price, Massachusetts was able to compete with other states and to bring the business into the Bay State successfully.
As our economy lingers in recession, we should be looking for new ways to improve the business climate here in Massachusetts, and one of the first things we need to examine is our tax structure. Two leading candidates for reform are the sales tax and corporate excise taxes, both of which have undergone substantial recent increases.
Growing jobs in Massachusetts has to be Economic Priority Number One for our state, and tax policy is a great way to affect positive change.
What do you think? Do you support tax credits to lure businesses here? Please post a comment below.
I continue to believe that what we need to do is to make our state more competitive for businesses by lowering their costs of doing business here. And one of the best ways to do that is to make our tax system fair.
The other day, Governor Patrick proposed tax credits for small businesses and job creation in our state. These credits are worthwhile proposals but they seem like small steps forward in a much larger effort, especially when you consider recent hefty increases in the sales tax and corporate excise tax.
There is growing evidence that tax policy works to lure businesses here. For example, today’s Boston Globe has a story about a tax credit allotted to the film industry in 2005. The story says the tax credit has the potential to create a “small but robust film industry” here and to “support thousands of good-paying jobs.”
It’s particularly interesting that the study shows that Massachusetts has been more successful than other states that also offer tax credits because we have a better infrastructure and a more talented workforce in place for moviemakers to utilize. In other words, it suggests that the film industry was always willing to consider Massachusetts as a venue for its business because of what we have to offer, but the cost of doing business here was too high. Once we lowered the price, Massachusetts was able to compete with other states and to bring the business into the Bay State successfully.
As our economy lingers in recession, we should be looking for new ways to improve the business climate here in Massachusetts, and one of the first things we need to examine is our tax structure. Two leading candidates for reform are the sales tax and corporate excise taxes, both of which have undergone substantial recent increases.
Growing jobs in Massachusetts has to be Economic Priority Number One for our state, and tax policy is a great way to affect positive change.
What do you think? Do you support tax credits to lure businesses here? Please post a comment below.
Tuesday, January 26, 2010
Thought of the Day - 01/26/2010
Governor Patrick is filing is budget plan for Fiscal Year 2011 tomorrow, and today's morning papers are providing our first glance into what his plans might include.
According to the Boston Globe, Governor Patrick is proposing to change several laws related to state pension benefits as a way of cutting down on pension costs and closing loopholes that allow unfair benefits. In a separate story, the paper reports that the Governor is proposing to consolidate energy costs within the executive branch.
Together, these proposals could save millions of dollars a year.
I give credit to the Governor for taking these steps to help balance our budget and keep costs down. But, I wonder if they are mostly symbolic, or if they are actually indicative of a budget that starts making more responsible choices than we’ve been accustomed to.
Yesterday, the Beacon Hill Institute put out a press release advocating for a Tax and Expenditure Limitation (TEL) on state spending. That sort of plan would limit line item expenditure growth to the rate of inflation, adjusted for population growth. There are lots of details that would have to be worked out, but overall, I think this is the sort of bold reform we need to bring our budget back under control.
We need to get our state fiscal priorities back in order, and there’s no better time than right now.
I hope Governor Patrick’s budget will include solid ideas to save our state money, and that it will place a priority on local aid, health and human services spending, education, job creation and housing. These are the things Massachusetts residents need the most in this current economy.
I also call upon the Governor to submit a budget that’s free of new taxes, and which includes bold reforms that will streamline state government and improve our delivery of core services while eliminating waste, duplication and inefficiency, and stripping out spending on unnecessary programs or programs that could wait until a better day to be funded.
We will see tomorrow what Governor Patrick ends up proposing in his budget, what his priorities are and how they would affect the quality of life of citizens across our state during the coming year.
And, if I’m not satisfied by the Governor’s solutions, I will start working immediately to make sure the budget that comes out of the Legislature this summer is one we can be proud of, and one that will protect people and communities the right way.
According to the Boston Globe, Governor Patrick is proposing to change several laws related to state pension benefits as a way of cutting down on pension costs and closing loopholes that allow unfair benefits. In a separate story, the paper reports that the Governor is proposing to consolidate energy costs within the executive branch.
Together, these proposals could save millions of dollars a year.
I give credit to the Governor for taking these steps to help balance our budget and keep costs down. But, I wonder if they are mostly symbolic, or if they are actually indicative of a budget that starts making more responsible choices than we’ve been accustomed to.
Yesterday, the Beacon Hill Institute put out a press release advocating for a Tax and Expenditure Limitation (TEL) on state spending. That sort of plan would limit line item expenditure growth to the rate of inflation, adjusted for population growth. There are lots of details that would have to be worked out, but overall, I think this is the sort of bold reform we need to bring our budget back under control.
We need to get our state fiscal priorities back in order, and there’s no better time than right now.
I hope Governor Patrick’s budget will include solid ideas to save our state money, and that it will place a priority on local aid, health and human services spending, education, job creation and housing. These are the things Massachusetts residents need the most in this current economy.
I also call upon the Governor to submit a budget that’s free of new taxes, and which includes bold reforms that will streamline state government and improve our delivery of core services while eliminating waste, duplication and inefficiency, and stripping out spending on unnecessary programs or programs that could wait until a better day to be funded.
We will see tomorrow what Governor Patrick ends up proposing in his budget, what his priorities are and how they would affect the quality of life of citizens across our state during the coming year.
And, if I’m not satisfied by the Governor’s solutions, I will start working immediately to make sure the budget that comes out of the Legislature this summer is one we can be proud of, and one that will protect people and communities the right way.
Friday, November 27, 2009
Thought of the Day - 11/27/09
I hope that you and your family enjoyed a wonderful Thanksgiving holiday.
There are several political issues related to the holiday weekend that are somewhat interesting.
At the beginning of November, the Mass. Turnpike Authority was eliminated and its responsibilities were transferred to a new state agency, under a transportation reform bill passed earlier this year. Wednesday’s pre-holiday commute gave us the first opportunity to measure improved efficiency under the new system. In particular, the Department of Transportation vowed to improve holiday traffic flow to avoid problems like those experienced during the Easter weekend earlier this year.
The result? Well… drivers on the Mass. Turnpike confronted a 45-mile traffic jam going westbound. I don’t know what you think, but if you were one of the drivers caught in that traffic jam, I’m guessing you don’t feel that state government “efficiency” is working to your benefit.
It looks like the same sort of problem existed over at MassPort yesterday. There was a six-hour flight delay for some passengers at Worcester Regional Airport (operated by MassPort). Travel delays around the holidays are common, of course, but passengers reportedly got most frustrated because airport officials did not inform them of the likely cause and duration of the delay, leaving them unable to make alternate arrangements.
Today, it’s back to work for some, including many retailers for whom this day has come to be known as “Black Friday.” Others who have the day off are looking to take advantage of some of the bargains available at local stores.
There’s an interesting editorial in today’s Boston Herald that talks about Black Friday. Specifically, the editorial notes efforts that New Hampshire is making to lure Massachusetts residents across the border for tax-free shopping with incentives to stay overnight and shop more. The editorial mentions that Massachusetts retailers have little they could offer in return, since it’s illegal for businesses here to waive the sales tax, and since hotel stays are getting more expensive due to higher taxes.
One thing the editorial doesn’t mention is the fact that Massachusetts residents’ desire to shop tax-free across the border (which Massachusetts law forbids, by the way) is being driven in part by the fact that our state increased the sales tax this past year to 6.25 percent.
This is a perfect example of the way higher taxes hurt not just consumers but also businesses. Because of the tax increase, more and more sales likely will find their way across the border this holiday season. Even if consumers follow the law and end up remitting the sales tax back to the state when they file their taxes in April, these sales are forever lost to Massachusetts businesses that are relying on them to survive. And ultimately, that will mean either higher prices here in the Bay State or fewer jobs – or both. Taxes have real-world consequences for those who have to pay them, and that always makes tax increases an even more costly decision.
Unfortunately, it seems like the Patrick administration is not getting this message. There was news on Thursday that the state is planning to double taxes that employers pay to cover health insurance costs for workers who are laid off. Michael Widmer of the Massachusetts Taxpayers Foundation says the tax increase is “going to be a major blow to employers” in Massachusetts.
All of these stories point to a lack of coordinated leadership at the state level and to poor decisions being made by those in charge of policy. We need to start making better choices when it comes to our tax policy, and we need to start enacting real reforms that will actually improve the efficient operation of government – without asking people to pay more for the same old services.
What do you think? Please post a comment below.
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