Critics want gov to wave off fuel tax
Critics of a controversial regional carbon tax designed to limit greenhouse gas emissions have renewed calls for Gov. Charlie Baker to stop it, saying it’s unfair to further burden consumers amid a pandemic that has sent the economy into freefall.
“Since the pandemic hit, our state’s economy has declined, and unemployment reached record highs. The future of the Massachusetts economic recovery is in jeopardy if anti-businesses schemes like this are allowed to go into effect,” said Paul Diego Craney, spokesman for the Massachusetts Fiscal Alliance.
The Transportation Climate Initiative is a regional compact being between 11
Northeast and Mid-Atlantic states that would implement a gas fee to reduce carbon emissions. Officials have estimated the measure would raise gas prices between 5 and 17 cents a gallon in the first year but it remains unclear how high that cost could rise in subsequent years.
Governors in New Hampshire, Connecticut and Vermont have already cast a shadow on the plan that critics describe as a regressive gasoline and diesel tax. Proponents say the TCI would build a regional program that would cap and reduce greenhouse gas emissions and invest the proceeds in a cleaner, more resilient and more equitable low-carbon transportation system.
Baker has promised no new taxes in the current fiscal year as the state works to dig itself out of the financial hole created by the pandemic. His plan to balance this year’s $45.5 billion state budget amid a $3.6 billion revenue shortfall heavily relies on one-time funding from federal reimbursements and the state’s rainy day fund.
At a briefing last week, the Republican governor did not withdraw his support for the TCI tax. Legislators, who will ultimately decide the measure, meet on Wednesday to discuss the governor’s proposed budget.
“Before the pandemic, Gov. Baker was TCI’s biggest cheerleader,” Craney said.
Craney, joined by 18 other conservative organizations, sent a letter to governors and lawmakers in all 11 TCI states asking they consider the “substantial economic pain” already facing residents saying TCI would unfairly burden those already disproportionately impacted by the pandemic.
“This is not the right time for costly, feel-good measures that deliver negligible environmental benefits,” Craney said.
Massachusetts is currently working with other states to move forward on the initiative. A final memorandum of understanding on the proposed cap-and-invest system was originally expected this spring but was put off amid the pandemic. It is expected to be finalized this fall. At that point, each state will make a decision about signing on to the regional program and would require the approval of the Legislature.