Community members laid out their vision for economic recovery to a group of elected officials at a virtual town hall Thursday night.
State Sen. Brendan Crighton, along with Reps. Daniel Cahill, Peter Capano, Lori Ehrlich, Andrew Arnotis, Paul Tucker, Jerald Parisella, and Ted Speliotis all attended the event, sponsored by the North Shore Labor Council and American Federation of Teachers-Massachusetts, along with Raise Up Massachusetts, and a coalition of community organizations.
The primary focus was how to address the Commonwealth’s $3.5 billion budget shortfall without cutting funding for education and social programs, with locals voicing support for raising funds through taxing corporations and wealthy investors.
“Our communities succeed when we invest in our infrastructure,” said Beth Kontos, president of AFT-MA, who hosted the forum. “And our needs are greater now than ever before.”
Helina Fontes, a Lynn resident and program director of the Northeast Independent Living Program, discussed how funding is necessary to address the community’s mental health needs.
“Budget cuts would be devastating to the populations we serve,” she said. “Access to quality, affordable and timely mental health services can mean the difference between community integration and institutionalization.”
Fontes suggested a tax on corporate profits as a means of generating funding. According to data compiled by MassBudget, a 1.5 percent increase in the corporate tax rate could raise between $375 million and $500 million annually.
Salem resident Barbara Mann highlighted the struggles of seniors, pointing out that Massachusetts was the worst state in the nation for economic welfare for seniors.
“The pandemic highlighted the struggle seniors are experiencing,” she said, referencing elderly residents living on fixed incomes and having difficulty paying medical bills.
She recommended taxing multinational corporations’ overseas profits by increasing the tax rate on GILTI (Global Intangible Low Taxed Income) in order to assist seniors. Raise Up Massachusetts estimates that taxing these profits, as many other states have already done, could generate between $200 million and $400 million annually.
Julie Curtis, a graduate of North Shore Community College and Salem State University, stressed the importance of maintaining funding for higher education.
“People like me were about to have a career because of North Shore,” said Curtis. “Please keep funding higher education.”
Additionally, speakers recommended increasing the tax rate that investors pay on unearned income. Unearned income is currently taxed at 5 percent, the same rate as conventional income tax. A percentage point increase in this rate could generate $400 million to $500 million annually.
Phineas Baxandall, a senior analyst at MassBudget, laid out the economic argument for taxing the wealthy.
“When you give money to rich people they stow it away,” he said. “Low-income people will circulate it.”
The consensus of the community was that budget cuts could and should be avoided through progressive policy decisions. Said Deb Gesualdo, president of the Malden Education Association, “Massachusetts is not a poor state. The money is there.”
