The Political Edge - June 2009
After several months of political wrangling between Governor Patrick and the Legislature on a series of reform bills, taxpayers will soon face up to a billion dollars in new taxes.  Patrick had made his support for a 25% increase in the sales tax contingent on pension reform, ethics reform and transportation reform.  The higher sales tax is estimated to generate $900 million annually in revenue by 2011.  In addition to new taxes, the $27.4 billion budget includes $1.5 billion in one-time federal stimulus funds and $2.5 billion in spending cuts.  The budget also taps $199 million from the "rainy day fund" leaving only $600 million in reserves down from $2 billion just a year ago. read more...