Tax talk — take two
Now, was that really so hard? House Speaker Robert DeLeo made needless trouble for himself on the tax issue this week when on Tuesday he declared it “much too early” to discuss the possibility of new taxes or higher taxes in next year’s budget. That set some tongues wagging, given the speaker’s willingness in previous years to rule out tax hikes early on in the budget process.
But as quickly as the Republican Party could click “post” on its critical tweets DeLeo had reversed himself, on Wednesday declaring new broad-based taxes off-limits in the House version of the budget. Given Gov. Charlie Baker’s anti-tax position, that means a tax increase is likely off the table — at least in the budget.
DeLeo’s no-new-taxes pledge did come with a few caveats, which may explain his earlier reticence. The House and Senate are planning to finalize a bill this session, for example, that will impose new regulations on short-term rentals such as Airbnb, and the final version is expected to include a new tax (one Airbnb actually has supported).
Beacon Hill may also consider changes related to the federal tax reform recently signed into law by President Trump. DeLeo said the House will explore “options to mitigate negative repercussions” for Massachusetts taxpayers, with a focus on the new cap on state and local tax deductions, although it’s far from clear what that means. So it’s read his lips — no new
broad-based state taxes. But Massachusetts taxpayers can live with that.
While the House may have no plans to raise taxes legislatively, it’s important to note that if the proposed “millionaire’s tax” survives a challenge now pending before the state’s highest court (a big “if”) Democrats will be lobbying for higher taxes, at least on the wealthy. The measure would authorize a graduated income tax, not currently permitted under the state Constitution — and repeatedly rejected in the past by voters.
If only DeLeo were as hesitant about that constitutional raid on taxpayers’ wallets as he is about budgetary tax hikes.