The Massachusetts Fiscal Alliance released the following statement after news broke that state revenues for the seventh month in a row are below expectations.
The Department of Revenue collecting $3.594 billion in January, which is $268 million or 6.9 percent less than actual collections in January of last year and $263 million or 6.8 percent below the Healey administration's revised monthly benchmark of $3.858 billion.
“Governor Maura Healey is dealing with an economy she helped create. It’s safe to say the income surtax is driving wealth and resources out of the state. The poor decision to endorse a ballot question that wrote into the state constitution an 80 percent income tax hike on some high-income earners, small business owners, home sales, and retirees is having a devastating impact. The Governor’s response is inadequate. State House leaders cannot simply ignore what is driving this trend, they must confront the fact that their income surtax has not only made Massachusetts among the least economically competitive states in the country, but it is also driving out tax revenues,” stated Paul Diego Craney, a spokesman for the Massachusetts Fiscal Alliance.
“Governor Healey needs to abandon her proposal to allow municipalities to raise taxes on food, lodging, and vehicles any further. The Governor needs to reverse course on her proposal to raise the stamp tax on certain real estate transactions. The Governor needs to shake off her impulse to raise taxes to fund out of control state spending, and start slashing taxes and the wasteful spending. If Governor Healey wants to reverse this course, she needs to rein in spending and consider broad based tax cuts. Until then, the income surtax will continue to drive taxpayers elsewhere and state revenues will continue to decline,” continued Craney.