The Massachusetts Fiscal Alliance made the following statement in response to Governor Elect Maura Healey announcing her administration’s first cabinet picks, including her new state budget chief, chief of staff, and senior advisor.
The Governor Elect announced Matthew Gorzkowicz will be the next secretary of the Executive Office for Administration and Finance, Kate Cook will be the next chief of staff, and Gabrielle Viator will serve as a senior advisor to the Governor Elect.
“All new senior officials will inherit a ticking time bomb known as Question 1 and it goes off in 18 short days. This 80 percent income tax hike surcharge on some small businesses, retirees, home sales, and high-income earners will go into effect on January 1 and the million-dollar question is, if we lose these taxpayers, how will Massachusetts deal with the economic fallout? The Governor Elect and her senior officials don’t have much time to propose broad tax cuts to stave off economic flight, and any mild ‘targeted’ approach will not be enough. The Governor Elect and her team need broad tax cuts and tax elimination to deal with this economic reality that will hit our state in a couple of weeks,” stated Paul Diego Craney, spokesperson for Massachusetts Fiscal Alliance.
The Tax Foundation, one the county’s leading voices on tax issues, has offered several policies for how to deal with the economic fallout associated with Question 1. They suggest drastic reductions in property taxes, which Massachusetts currently ranks as the 5th highest in the country, eliminating or reducing the capital stock tax, the inventory tax, the estate tax, and the corporate income tax system, all of which Massachusetts ranks as the worst or among the top worst in the country. The Tax Foundation’s warnings and recommendations for Massachusetts State House leaders may be found here.
“The days of Massachusetts tinkering with tax reform is over. Question 1 has the potential to produce a blow to our state economy and the only appropriate response from the Governor Elect and her senior officials are broad tax relief measures such as an income tax reduction, property tax reduction and the elimination of certain punitive taxes such as the estate tax and the inventory tax. In a few short weeks, Massachusetts State House leaders must be ready for the challenge because it’s fast approaching. The only question that remains is, what will our State House leaders do before it’s too late?” concluded Craney.