Mass. speaker seeks smaller tax hike than Patrick

Published On: Mar 07 2013 11:27:08 AM EST

Massachusetts House Speaker Robert DeLeo called for a much smaller package of tax increases than has been recommended by Gov. Deval Patrick, saying he wanted to address pressing needs while avoiding any "collateral damage" to the state's economy.

"I'm worried that the administration's proposal places too heavy a burden on working families and businesses that are struggling to survive," DeLeo, a Winthrop Democrat, said in a speech on Thursday to the Greater Boston Chamber of Commerce.

Patrick in his state budget request has called for a net tax increase of $1.9 billion to pay for transportation and education improvements.

His plan calls for raising the income tax from 5.25 percent to 6.25 percent, while lowering the sales tax from 6.25 percent to 4.5 percent.

DeLeo said he shared the same two priorities - transportation and education - as the Democratic governor, but wanted to minimize the impact on taxpayers.

"If we are to pass a new revenue package, I believe it should be far more narrow in scope and of a significantly smaller size," he told the gathering of business leaders.

"We seek to fund the priorities we need to enhance the economy, without creating any collateral damage," he added.

In his speech and in later remarks to reporters, DeLeo emphasized that he was not trying to pick a fight with the governor on taxes and that he continued to have a strong working relationship with the administration.

While agreeing that some new revenue was needed, DeLeo said House leaders were still mulling various options. He said lawmakers would seek a revenue source that would be earmarked entirely for the state's transportation needs. But he also said he wanted to assure that any unnecessary costs are removed before committing additional money to the system.

The Massachusetts Bay Transportation Authority said earlier this week that it might have to raise fares as much as 33 percent or slash some service if it does not receive additional funding from the state. The MBTA faces a $140 million deficit in the next fiscal year.

DeLeo said the House would devise a plan to address the MBTA's shortfall and that he hoped it would avoid the need for fare increases.

He said the plan would also help smaller regional transit authorities around Massachusetts.

Patrick has said that because his proposed income tax increase also includes a doubling of the personal exemption and the elimination of some itemized deductions, about half the state's taxpayers -- including those who earn less than $60,000 annually -- would pay the same or less in taxes if the plan was approved.


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