NEWSLINK, V2N3 Spring 1998: BHI survey finds support for tax cuts, credits

In April, as part of our State of the Household Project, BHI conducted a mail survey of a select group of Massachusetts taxpayers including Republicans, independents, conservative Democrats and libertarians for their views on a variety of issues affecting them. We received more than 200 replies. Following are responses to some of our questions.

To the question of what to do with a FY 98 Massachusetts budget surplus, 80% felt there should be a tax cut. Three percent felt the funds should be used for capital projects; another 3% supported increasing personal exemptions and 4% wanted to boost the rainy day fund. The rest were undecided.

Under the Education Reform Act of 1993, state and local governments in Masssachusetts expect to spend more than $5.6 billion. Do you think that this investment in public education is a good use of tax dollars?

There is a proposal to increase the state's rainy day fund from $950 million, where it is capped now, to $1.45 billion. Seventy-one percent of respondents indicated they do not support this at all. Eight percent indicated support and 21% were moderately or slightly in favor.

Respondents resoundingly want to reduce the earned-income tax rate to 5%. Asked which tax plan they favor, 90% favor reducing the current 5.95% rate to 5%. Only 5% favor a decrease to 5.7%. On the issue of how important to the Massachusetts economy it is to cut the current tax rate on investment income from 12% to the same rate as applied to earned income, 89% said it is very important, with only 1% saying not at all.

Should Massachusetts offer tax incentives for contributions to charitable organizations that help the poor even though the state wiil lose revenue as a result?

Massachusetts currently does not offer any tax incentives for contributions to charitable organizations. Asked if the state should offer tax incentives for contributions to these organizations even if it will lose some revenue as a result, 80% said yes. Asked if they would increase their giving to charities that help the poor if Massachusetts were to cut back on welfare funding, 62% said yes. Only 11% disagreed. The remainder were not sure.

When asked if they would increase their giving to charities that help the poor if Massachusetts were to offer tax incentives, 70% said yes.

Asked if they support a proposal to abolish all tolls on Massachusetts roads, tunnels and bridges, 52% agreed, while 39% disagreed.

Under the Education Reform Act of 1993, Massachusetts state and local governments expect to spend more than $5.6 billion in FY 98. Asked whether they think this investment in public education represents a good use of tax dollars, 38% agreed while 42% disagreed. The rest were unsure.

On whether the "Big Dig" is being managed effectively, 61% indicated that it is not.

Survey shows support for tax cut, charitable tax credits