The criminals in the Mass House of Representatives have gone off the deep end.


Finneran, House pass $1B in tax hikes

by Elisabeth J. Beardsley and David R. Guarino
Friday, May 3, 2002

House lawmakers yesterday hit up the average taxpayer for at least an extra $317 per year, under a $1 billion tax-hike package that drew an instant veto promise from acting Gov. Jane M. Swift.

But the veto is largely an empty threat, given that the 131-24 vote far exceeds the two-thirds majority needed to override.

House leaders were jubilant after spending weeks pushing and cajoling rank-and-file members and threatening massive spending cuts to highly prized programs.

``It's an astounding vote, an astounding vote,'' said House Speaker Thomas M. Finneran, adding he feels an ``awful lot of pride'' in lawmakers.

The first tax hikes in a decade come as lawmakers struggle with a $2 billion deficit. Finneran said the new money would be used to restore huge cuts to schools, mental health and retardation services.

Finneran warned that at least $1 billion would still be slashed from programs, and urged lawmakers not to pile more spending onto the state ledger when the full budget debate begins next Wednesday.

Finneran rammed the $1 billion tax-hike package through after a four-hour debate - despite claiming a day earlier that he would neither offer an official package nor support $1 billion in new taxes.

The leadership-endorsed package contains five tax hikes, which whack virtually every type of taxpayer - from middle-class citizens and business leaders, to philanthropists and smokers.

The package:


Reneges on the voter-approved income tax cut by freezing it at its current 5.3 percent rate. This will raise $230 million for state government and put the average single-filing taxpayer on the hook for an extra $150 a year. The proposal includes triggers to reduce the rate when the economy improves.

Indefinitely suspends voter-approved charitable giving tax deductions. This raises $185 million for state and costs the average donor an extra $65 per year.

Taxes capital gains at the same rate as income, eliminating the existing tax phase-out system. This proposal raises $240 million for the state. Approximately 800,000 Bay State residents hold capital gains, with two-thirds making less than $100,000 per year.

Scales back the personal exemption from $4,400 to $3,300 for single filers. This raises $258 million for the state and costs the average family of four $262 a year. The proposal also contains economic triggers to eventually restore the tax break.

Hikes the cigarette tax by 75 cents, on top of an existing 76-cent tax. This raises $150 million for the state and means a pack-a-day smoker will pay an extra $273 per year.
Immediately after approving the package, House members applauded and cheered. A few moments later, Democrats loudly booed a Republican whose late-entered ``no'' vote was announced over the loudspeakers.

House leaders expressed pride in hitting virtually every class of taxpayers, an approach they described as ``fair and equitable.''

``We do target all groups across the board,'' said House Taxation Committee Chairman Paul Casey (D-Winchester). ``It's a universal approach.''

Swift quickly promised a veto, though the House vote showed a two-thirds override vote could be easily mustered.

She chided lawmakers for refusing to consider non-tax alternatives, like her proposal to cut payments to Lottery winners and use more state reserves.

``I have no intention of signing a huge tax increase resulting from a debate that did not explore several viable revenue options such as reducing our highest-in-the-nation lottery payout and using more reserves and tobacco fund money,'' Swift said in a statement.

Swift said the House's income tax freeze would block the state from reaching the 5 percent income tax rate until at least 2009.

Senior administration sources signaled to lawmakers that while Swift is willing to agree to tax hikes, she won't tolerate the ``evisceration'' of voter-approved ballot initiatives.

``Everything about this is wrong,'' a senior Swift adviser said.

Leaders in the Senate also hurried to undercut the House plan, saying the House picked the wrong priorities.

Senate Ways and Means Chairman Mark Montigny (D-New Bedford) said the Senate would frown on slashing taxpayers' personal exemptions, which Senate President Thomas F. Birmingham trumpets on the campaign trail.

``The more optimistic among us would probably call it a lead balloon, while the more pessimistic, like myself, would say it would be dead on arrival,'' Montigny said.

During the four-hour debate, even the phraseology echoed the tense sentiment, with Democrats repeatedly referring to ``revenue enhancements,'' while Republicans railed against ``tax hikes.''

Democrats said they wished they could do more to save programs or hit only the wealthy with tax hikes, and downplayed the breadth of the increases.

``It won't make things better, it's no panacea,'' said state Rep. Carol Donovan (D-Woburn). ``It's simply a modest stop-gap measure . . . an investment in our children and in our state's future.''

House Republicans staged a vigorous - albeit futile - resistance after their proposal to raise huge sums of money through casinos and other gambling was ruled out of order.

``People will give us voluntarily their money, but we'd rather take it through taxation,'' said House Minority Leader Francis L. Marini (R-Hanson). ``I don't get it.''

Behind the scenes, Finneran continued to orchestrate the tax-hike campaign yesterday - issuing naked threats to lawmakers at a private caucus prior to debate.

``Finneran told us three times - three times - ``I expect every Democratic vote,' '' one source said.

Despite the arm-twisting, seven Democrats bucked leadership by voting against the bill - including several of Finneran's chairmen.

Rep. James R. Miceli (D-Wilmington), chairman of the House Personnel and Administration Committee, said there's no way he would be willing to face his working-class constituents with the new taxes.

``I just thought the size of this was exorbitant,'' Miceli said. ``I'm just not ready to bite into a tax package of this magnitude.''

After the main debate, lawmakers dove into a pile of amendments to hike other taxes - prompting protest from the just-defeated GOP.

``Welcome to Taxachusetts!'' Rep. Michael J. Coppola (R-Foxboro) shouted from the podium. ``My question is: Where's it going to end?''

But Finneran's leadership bungled several votes. At one point, Majority Whip Lida Harkins (D-Needham) fast-gaveled an amendment to double the cigar tax, announcing it had been adopted on a ``voice vote.''

Moments later, Republicans demanded a roll call, and the cigar tax hike was resoundingly rejected on a 96-59 vote.


Karen E. Crummy contributed to this report.