For
Immediate Release:
October 30, 1997
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<
Contact:
Frank
Conte, Communications
617-573-8050; 8750
fconte@beaconhill.org
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BHI
State of the Household Survey
Fall 1997
New
poll shows overwhelming support for income tax cut
Boston, October
30 - A new statewide poll conducted by the Beacon Hill Institute shows
that Massachusetts residents favor a proposed reduction in the state income
tax by more than a 4-to-1 margin. The state currently taxes earned income
and certain unearned income at 5.95%. The Beacon Hill Institute at Suffolk
University asked 590 Massachusetts residents if they would support a plan
to cut the tax rate from 5.95% to 5.00%. Seventy-eight percent (78%) of
those surveyed said "yes." Seventeen percent (17%) said "no."
Governor
Paul Cellucci has offered the Massachusetts legialature a proposal that
would phase in the tax cut over three years. A citizens group is currently
circulating an initiative petition that would put a similar proposal
on the 1998 ballot.
"Massachusetts
lawmakers have, for various reasons, put Governor Cellucci's proposal
on hold," said BHI Executive Director David G. Tuerck. "But
our poll suggests that Massachusetts residents favor his proposal by
a very wide margin."
Some lawmakers
have argued against the tax cut on the grounds that an economic downturn
could cause a slowdown in revenue growth. In upgrading the state's bond
rating, Standard & Poors similarly cautioned this week against inviting
a fiscal crisis reminiscent of the state's experience of the late 1980s.
Q:
The state legislature is considering a proposal to cut the state
income tax rate from 5.95 percent to 5 percent. People in favor
of this say giving the money to the taxpayers will stimulate
the state's economy. People opposed say that the state may need
the money in the future when times are not so good. Do you favor
or oppose cutting the state income tax rate from 5.95 percent
to 5 percent?*
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©1997 Beacon Hill Institute, All Rights Reserved.
"It
appears," said Tuerck, "that Massachusetts voters are less
persuaded by arguments such as these than they are by evidence that
the proposed tax cut would exert a powerful stimulus to the economy."
A BHI study released in September showed that the tax cut would add
105,000 new jobs, increase payrolls by almost $5 billion and increase
capital spending by $21 billion.
The poll
showed strong support for the tax cut across all demographic and political
groups. The poll was conducted October 4-8, 1997 and has a margin of
error of plus or minus 4%.
The Beacon
Hill Institute at Suffolk University in Boston applies state-of-the-art
economic methods to the analysis of current public policy issues.
*This
survey was conducted for the Beacon Hill Institute under the supervision
of Dr. John Blydenburgh and with the assistance of Commonwealth Consulting.
Format
revision on
04-Mar-2005 10:22 AM
©2000-2005
Beacon Hill Institute for Public Policy Research at Suffolk University,
All Rights Reserved