New taxes in gov's 2014 state budget

BOSTON, Mass. (WWLP) —  

Governor Deval Patrick unveiled a nearly $35 billion dollar state budget proposal for fiscal year 2014. It includes more than one billion dollars in new revenue based on tax reforms.  Most notably, it raises the income tax from 5.25 percent to 6.25 percent, doubles personal exemptions and lowers the state sales tax from 6.25 percent to 4.5 percent.

“This is not something I’m doing lightly, but it is something I’m doing because I reject the notion of this self-defeating strategy of not shaping our future,” said Gov. Deval Patrick (D-Massachusetts).

The governor’s budget also proposes to increase the cigarette tax from one dollar to $3.51 a pack, remove tax breaks on candy and soda, and cap the film tax credit at $40 million dollars per fiscal year. House Speaker Robert DeLeo is asking lawmakers to get ready for a vigorous discussion.

“We’ve got a lot of talk about and the only thing I ask members is to sort of keep your powder dry till you, till all the facts are out there and we know exactly what the House’s response, what our plans are going to be,” said DeLeo.

Patrick says the new revenue will go toward an economic investment strategy that invests nearly $7 billion dollars in education and nearly $715 million dollars in transportation.  Policy experts are giving the tax reforms mixed reviews.

“These investments begin to move us further in that direction, being an economy that can produce and attract high wage jobs for our people,” said Massachusetts Budget and Policy Center President Noah Berger.

“I am concerned that there is a risk here,” said Massachusetts Taxpayers Foundation President Michael Widmer.  “We have to deal with the short term realities of difficulties for homeowners and individuals across this state and a very fragile economic recovery.”

Governor Patrick’s budget also proposes to expand the bottle bill by tacking on a 5-cent refundable deposit to a longer list of drink containers like water and sports drinks.

Copyright 2014 WWLP TV. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Political Pulse

Did you like this article? Vote it up or down! And don't forget to add your comments below!

Like It
Don't Like It


We welcome your thoughtful comments. Be the first to participate in the discussion. All comments will display your username and avatar.


Add a Comment

Sign in or join now to post a comment. All comments will display your username and avatar.


Massachusetts (change)

Welcome to Massachusetts onPolitix, powered by 22News. Trust onPolitix for your latest state, local, and national political news. onPolitix is just another way 22News is working for you.
Offices & Officials

Governor: Deval Patrick
Lieutenant Governor: Tim Murray
Attorney General: Martha Coakley
Secretary of State: Bill Galvin

Contacting the White House and Congress

Click the links below to get in touch with your elected officials.