Opening Volley on Rep Race: Boag on Sales Tax reduction
By Shawn on Feb 2, 2012 in Dracut Elections, Politics
A “Web Extras” article at the Lowell Sun tells us that Boag has started his campaign of State Representative by calling for a reduction in the State Sales Tax to 3% in two steps.
When asked by Garry what he would cut to make that happen:
In an e-mail Boag wrote that revenue next year is expected to creep up by about $900 million and that Patrick’s budget calls for a $1.6 billion increase next year.
“Part of this increase comes from areas labeled fixed costs,” Boag wrote. “But he (Patrick) has proposed to reduce some of the expected increases, so just how fixed are they?”
Boag said state pensions should be capped at $100,000. He also called for reducing management levels “in most state agencies.” Patrick’s budget calls for shedding 1,100 public employees, “it also calls for hiring 800 for a net reduction of 300,” he said.
Now everyone would agree with the pension cap, but that could not apply to current employees only future ones, and the massive majority of state pensions are actually well under $100,000.00, so I’m not sure of the actual impact that would have.
Reducing management levels is a smart move. Patrick has done a lot of that in the past and is planning more. I would like to see the same at all the “quasi” agencies and authorities as well… not to mention the higher education system.
As we said last week, Garry joined with Republicans last week in fighting a proposal to raise taxes that would affect the border communities most:
Last week, Garry joined several other state representatives in New Hampshire border communities in opposing Patrick’s proposal to hike cigarette taxes another 50 cents, apply the sales tax to candy and non-diet soda and expand the bottle bill.
Taxes are always a good start in an election challenge. Its a tough one for a challenger to use, though, where the incumbent has all the facts and figures at hand.
But continued pension reform and fighting to reduce taxes? I’m all for that.
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George boag | Feb 2, 2012 | Reply
Dear Shawn
When I responded to Evan Lipps I did not mean to imply the $100,000 cap would significantly impact state pension costs. I believe you are correct it can only be imposed on future retirees. It should be included in pension reform and will produce some savings but more must be done.
Another reform I would like to see enacted is lengthening the period used to calculate pensions. Last year the legislature lengthened this from 3 years to 5 years. I t takes 10 years to be vested in the system, pension calculations should be based on 10 years of earnings.
The governor’s budget also increases spending for many safety net programs. Sen Steven Baddour recently requested Auditor Suzanne Bump look at the state’s welfare system. Before we increase spending on these programs we should wait to see the results of the audit.
The legislature must thoroughly review the health reform of 2006. The governor is proposing spending caps not examining why costs are rising. Under this program many of the previously uninsured have just been shifted to MassHealth. Since 2006 this program has increases 63 percent from $7 billion to a projected $11 billion.
Now that tax receipts are increasing from year to year we need to look at cutting taxes. If this is not done the new money will be eaten up by spending on new programs. Cutting the sales tax and unemployment tax on businesses will be the most beneficial for the state’s economy.