Disastrous referendum in Mass.

MASSACHUSETTS HAS a referendum on the ballot this November, Question 1, which would eliminate the state income tax. This would be a frightening prospect in any economic climate--if it passes in the current economic crisis, it would be a catastrophe. Everyone who can should vote No on Question 1 in Massachusetts.

The passage of Question 1 would mean the shredding of most social services across the state. As the Boston Globe wrote:

The state could stop spending every dime it now spends on local aid and every dime on human service programs--food banks, domestic violence and homeless shelters, care for autistic children, substance abuse and more--and still not have enough to make up for what is lost to Question 1. The state could fire all 67,000 state employees--every prison guard and college teacher--and still have to find another $7 billion.

The ballot initiative is being pushed by the Libertarian Party and the Committee for Small Government. Not surprisingly, these people have little concern for those who would be impacted by the measure. Carla Howell, the main spokeswoman for Question 1, called government programs a "trash heap."

Question 1's libertarian advocates churn out right-wing populist rhetoric that lumps together corrupt politicians, government workers, unions and the poor as all responsible for the economic problems of "hardworking taxpayers." They disguise the fact that this solution can only benefit the rich and would dramatically increase the misery of those who are already suffering most in this economy.

Massachusetts currently has a flat income tax of 5.3 percent. Question 1 supporters claim that eliminating it will save taxpayers an average of $3,600 each. The trick, though, is all in that word "average."

According to an excellent report by the Massachusetts Taxpayers Foundation, 21 percent of income tax filers in the state earn less than $10,000 a year. These people at the bottom of the income ladder paid an average of $53 to the state--that's all they'd save if Question 1 passed. Two-thirds of state taxpayers earn less than $50,000 a year. On average, they would save an estimated $850 a year.

For the rich, it's a different story. Those who make $100,000 or more stand to save $16,295 a year from Question 1. And that number too, is an average--a small percentage at the upper end that stands to gain far more.

FOR THE majority of people in Massachusetts, the impact of eliminating the state income tax would be so devastating that it's hard to imagine it could really happen.

Currently, the state income tax brings in $12.5 billion a year in revenue, accounting for 45 percent of Massachusetts' annual budget. All this money would evaporate if Question 1 passes.

But even this understates the impact of Question 1. A combination of legal, federal and constitutional measures require Massachusetts to maintain five funding commitments, regardless of tax revenues in any given year: Medicaid, K-12 education, the Massachusetts Transit Authority, the Massachusetts School Building Authority (which maintains the state's school buildings), and servicing bonds the state has issued for past projects.

If Question 1 passed, state services other than these five legal obligations would be looking at funding cuts of more than 70 percent.

What state agencies and services would be on the chopping block? Public higher education, human services for seniors, the Department of Transitional Assistance, the Department of Public Health, the Department of Mental Health, the Department of Housing and Community Development, early childhood education, state employee pension funds, public libraries, veterans benefits, water and sewage treatment, HIV treatment, services for children with autism, snow removal, parks, food pantries, and on and on.

Politicians and the media are already suggesting emergency measures that could make up some, though not nearly all, of the shortfall, if Question 1 passes. Property taxes would certainly go up, which would be sure to increase the foreclosure rates in working-class neighborhoods.

Plus, the sales tax could go up--the Boston Herald suggested that Question 1's passage could lead to a sales tax of 15 percent. Sales taxes are, of course, regressive taxes whose burden falls more on workers.

Massachusetts, like states across the country, is already planning brutal austerity measures. Democratic Gov. Deval Patrick recently announced budget cuts of $1.5 billion that will cut painfully into social programs in the midst of a deepening recession that is driving increasing numbers of workers to turn to those programs for survival.

There is a solution to the budget shortfall in our state: Defeat Question One. Then get rid of the flat tax and impose a real state income tax targeting the rich, who can certainly afford it. That's the way to fully fund our social programs.