How About Spending Cuts First…

For months, Mayor Wu has been pushing for significant commercial property tax hikes while increasing the city’s budget by 8%. Meanwhile, Boston’s commercial sector is struggling, with many properties sitting vacant—it's estimated that one in four commercial properties are currently empty. Instead of adjusting spending, the Mayor’s solution is to raise taxes on property owners. She claims these increases will be "temporary," but history has taught us to be skeptical of "temporary" tax hikes in Massachusetts, especially in Boston. Whether or not you live in the city, poor fiscal policy in Boston drags down the rest of the state.

When Mayor Wu’s scheme was first proposed, Boston business groups and trade associations pushed back against Mayor Wu's tax proposal, urging her to consider spending cuts. Now, some of these groups are reportedly negotiating with the Mayor—not to reduce city spending, but to settle for a smaller tax increase, again claiming it will be “temporary.” MassFiscal doesn’t buy it.

Mayor Wu is wrong to want to raise taxes before she cuts spending. If she’s unwilling to cut, why not invite the state Auditor to review the city’s finances? The first instinct shouldn't be to burden commercial property owners, and there’s no real "deal" if the terms only go one way. Boston is home to some of the nation’s wealthiest universities, with endowments in the billions—they won’t feel the pinch of these tax hikes. But small businesses like sandwich shops, barbershops, bakeries, and restaurants will.

Mayor Wu’s property tax hike should be tabled. If it goes before the legislature, they should oppose it. Business groups that support “temporary” tax hikes should reconsider their mission statements. Boston needs to get its fiscal house in order before another tax hike is even considered and it starts with cuts to the Mayor’s eight percent spending increase.