Locals left shaking heads over possible hike in state sales tax

LYNN – It’s time for Massachusetts politicians to stop treating their constituents “like a bunch of dummies” by proposing tax hikes as a solution to the state’s budget problems, local residents said Thursday.”I think it’s great people are starting to take action,” said Vincent Andrade, who cited this week’s “tea party” protests across the country as examples of voters showing their anger at tax hikes as a solution for government fiscal woes.Fed up or not, the reality of declining public revenues has hit Massachusetts hard at a time when elected officials are preparing state spending plans for the fiscal year beginning July 1.A continued decline in state tax collections prompted Gov. Deval Patrick on Tuesday to announce a third set of budget cuts for the fiscal year, a $156 million spending reduction to be achieved partly through 750 job cuts and his own five-day unpaid furlough.The somber chief executive also painted an ugly portrait of state government going forward, saying tax collections may fall another $400 million short of projections before the fiscal year ends June 30 – likely requiring yet a fourth round of cuts.He spoke as the House prepared to release its own version of the state’s 2010 budget on Wednesday. Lawmakers expect it will include sharp spending cuts for the fiscal year beginning July 1.”This historic downturn is hitting state government especially hard, leaving us with tough choices among miserable options,” Patrick said during a State House news conference.He added, “The economy has not found its floor just yet.”Tax hikes are not off limits for legislative discussions even as job cuts occur. A proposed gasoline tax hike so far is dedicated to getting state transportation spending back on track. Union leaders asked local legislators Wednesday to consider a state income tax increase but state Sen. Thomas M. McGee warned them the public appetite for tax hikes is low with job uncertainty looming.”Is a sales tax an option?” he asked the leaders.The answer may be yes.While Patrick has proposed tax hikes on alcohol and cigarettes, legislative leaders have balked and talked instead about increasing the sales tax itself from 5 percent to 6 percent. Michael Widmer, president of the business-backed Massachusetts Taxpayers Foundation said a sales tax hike would raise only $750 million each year.”The scale of this free fall is such that even a broad-based tax increase will only help marginally,” he said.The state started the fiscal year July 1, 2008, with a $28.1 billion budget. In October, Patrick revised estimated collections downward and closed a $1.4 billion deficit. In January, he closed another $1.1 billion deficit.To help close the current $156 million deficit, he said that not only he but also Lt. Gov. Timothy Murray and his chief budget writer, Administration and Finance Secretary Leslie Kirwan, would take five-day furloughs.Aides said they expected all would show up for work, despite not being paid.