Tomorrow: The Legislature’s Second Vote on the Fair Share Tax

The Legislature will vote again tomorrow on an amendment to the state constitution to impose an additional four percent tax on the income of persons that exceeds a million dollars annually.

This will be the second of two legislative votes the constitution requires for amendments that originate as initiative petitions.  The proposed amendment received 135 “yes” votes from the 200 members of the Legislature last year, far more than the 50 necessary to advance. Another 50 or more “yes” votes tomorrow will put keep the amendment on track to appear on the 2018 statewide ballot.

But the closer the amendment gets to a popular vote the more opposition it attracts.  For example, the Greater Boston Chamber of Commerce, which sat things out last year, is joining forces with other business groups in a legal challenge aimed at knocking it off the ballot.

And last year’s opponents are ratcheting up their efforts this year.  Associated Industries of Massachusetts is running a multi-episode series entitled “The Constitutional Amendment Tax Trap” to puncture what it regards as myths (sample myths: the state has a revenue problem, the state needs to invest more in transportation, high income earners are not paying their fair share).

Likewise, the Massachusetts Taxpayers Association is rushing to the aid of the 19,600 residents of the state who would be subject to the additional tax, warning the rest of us against penalizing talent (their word) in this way. They offer an ominous scenario in which some — or all — of the top 900 of these residents (that is, those whose annual earnings exceed $10 million, aka, the top one-one hundredth of one percent) just take their ball and go elsewhere, leaving the state with less revenue than before.  In other words, income inequality in Massachusetts has reached the point where it’s being suggested that our tax policy ought to beseech our biggest plutocrats not to leave.

Anyway, stay tuned – this battle isn’t over.

 

AIM’s Legislative Scorecard for 2015-2016: Grading on a (Laffer) Curve

The state’s biggest employer trade group, Associated Industries of Massachusetts, released its 2015-2016 Legislative Scorecard today, ranking all 200 legislators by how dependably their votes advanced AIM’s legislative priorities.

This edition of the scorecard also trumpets a very clear story line — when it comes to supporting the state’s business community, it’s a tale of two chambers: House good, Senate bad. In AIM’s own words:

While the House of Representatives and Speaker Robert DeLeo successfully forged consensus on important measures such as wage equity and energy, the Senate hewed to a more progressive, ideological approach that produced a steady stream of bills with the potential to harm the Massachusetts economy.

Wow – who knew that all our Senators were Keynesians, Socialists or worse and that all our Representatives were devotees of Hayek?

The scorecard offers no information about roll call vote numbers or the dates of votes (although such information is available on the tallies made by other interest groups). AIM asserts that the Senate scores were “based upon many of the same issues” as the House scores, but even a quick review shows significant disparities between the votes AIM used to determine the scores in the respective chambers.

For example, AIM takes the Senate to task for twice voting against its preferred position on the amount of compensation employers should be liable to pay to employees in wage violation cases. You would not know from the scorecard that the House also took two votes on this issue, with results (largely along party lines) very similar to the votes the Senate took.  (The House votes are here and here.) While the Senate votes on this issue were included in the scorecard, the House votes weren’t.

Two years ago, AIM decided against issuing any Legislative Scorecard for the 2013-2014 session, explaining that “the complexity of the lawmaking process and the sometimes arcane rules of each chamber make it nearly impossible to render a fair judgment on the votes taken by individual legislators.” Those constraints are no longer in operation, it seems. The scorecard issued today raps the Senate for voting for an amendment prohibiting public utilities from adding fees to their customers’ electric rates to subsidize new natural gas pipelines, but it ignores the fact that four members of the House (including one of the most liberal and one of the most conservative) offered the same amendment in that body’s energy bill deliberations, but the amendment was ruled “out of order” through an arcane rule —  a parliamentary decision by House leadership that precluded a vote on the substance. (It also ignores the fact that more than 90 of the 160 Representatives sent a letter to House Speaker DeLeo in support of the Senate’s position.)

It was fairly clear, well before today’s scorecard came out, that the House was more friendly to AIM’s interests during the past legislative session than the Senate was. What’s less clear is why AIM chose to rig the results this time.  Is House leadership that susceptible to flattery?