Wanted: A Strong Progressive Response to the Massachusetts Budget Crisis

When we last took a look at the state budget debates a few weeks ago, Massachusetts was projected to be $3.5 billion in the hole for the FY 2010 budget - due to ongoing drops in tax revenue as the economy continues to slow. Now that number has increased to about $5 billion, according to the latest briefing by the Massachusetts Budget and Policy Center. To make matters worse, the state just announced that the current FY 2009 deficit has increased by at least another $1 billion - a gap that must be closed before the end of the FY 2009 budget year ends two months from now. Governor Patrick has signaled willingness to draw $461 million from the Commonwealth's rainy day fund for that purpose. Which will bring that fund to $800 million from $2.1 billion at the beginning of this fiscal year. In addition, the Governor plans to use $412 million of the $813 million that the federal government was originally giving Massachusetts to restore school and higher education aid between 2009 and 2011. If that plan goes through, only $70 million of that stimulus money will be left for education spending over those 3 years.

When it was voted up a week ago, the House FY 2010 budget had already proposed large cuts to most parts of state's budget. Now the cuts will have to be even worse. Having gone over the earlier proposed cuts section by section in our discussion of the House Ways and Means budget proposal recently, we suggest viewers just go and check out the MBPC report for yourselves if you'd like a more detailed view of the crippling of numerous critical state programs.

But it's important to understand that the main legislative response to this first year of what state economists are predicting will be at least a 4-year downturn in revenues is a drive to raise the state sales tax from 5% to 6.25%. As we've said before, this regressive tax will hurt poor, working and middle class families far worse than it will hurt the rich. And, ironically, it will not supply enough money to float state government as revenues continue to fall. More importantly, it ignores the driving need for a progressive taxation system in Massachusetts that would levy heavier taxes to raise the much larger amount of money the state needs to make it through the economic crisis from those best able to pay - the rich and corporations. The same social forces that have benefited from government-sponsored largess for at least 3 decades now must be made to give back to the society that has given them so much.

Unfortunately, voices for this kind of social democratic solution - which, while not the best solution we can envision at Open Media Boston is probably the best we can expect under capitalism - are still all too few and far between.

The main organized coalition fighting for a more progressive taxation system is One Massachusetts - put together by numerous unions and non-profits and run out of the Boston-based Public Policy Institute. They seem to be developing a fairly sophisticated social networking and media presence and have done some public actions. Including a kind of rolling "virtual protest" run off of their website.

However, even One Massachusetts is pushing increases to regressive taxes like the sales tax and alcohol tax. And while they also back increasing the state income tax in a progressive way, they do not stress it as much as this publication would like.

Open Media Boston must caution such pressure groups from "bargaining against themselves" - as the old union saying goes. That is, shooting too low with their demands out of the gate and then ending up with little more than they started off with when all the protests and debates over the FY 2010 budget are over. While the stated goal of One Massachusetts is that "by 2013, a fair, adequate, and stable tax system will be implemented," that seems a bit vague from this corner. We think it's key for progressive advocates to really come out swinging in such a critical debate with a forceful program that demands significant structural changes to the Massachusetts tax system.

Although we understand that grassroots advocates for needed programs feel extraordinary pressure to find money by any means necessary - they must also be aware that the more pressure put on beleaguered working families by regressive taxation, the harder it will be to pull out of this economic depression.

Far from a pie in the sky position, we think that only a true progressive graduated taxation system will ultimately fit the bill for working people in the Bay State. The faster we can move away from a communitarian view that treats the rich and large corporations like "just folks" in political economic terms, instead of treating them like what they really are - a small number of people and entities using their money to buy political power to keep making money as the rest of society goes to hell - the better.

Open Media Boston therefore goes part of the way with One Massachusetts and any similar coalitions that pop up. But we strongly encourage such advocates to go to the wall for the only tax reform that's really going to help working families in the short-to-medium term - the implementation of a progressive graduated taxation system in the Commonwealth.

That kind of program, if clearly and simply explained, could win the support of hundreds of thousands of Massachusetts working families. And that's the kind of political muscle it's going to take to win any significant reform in the business-as-usual morass of state politics.

We sincerely hope progressive advocates move in that direction before this budget debate is over. We don't think it's a good idea to wait until 2013. We are no longer in an age when the academic-driven technocratic "politics of the possible" must reign. This is an era when people will get behind solid ideas, presented forthrightly - if such ideas will improve their lot. This is an era where the "politics of the imagination" must move to the fore for the first time in over 40 years.

We will back such politics as they appear. And we look forward to their appearance. We certainly hope that winning a reform like a progressive income tax will one day be counted as only among the most minimal and short-term improvements won by a majoritarian left-wing social movement sparked into being by this current rough patch in the world historical road.

Jason Pramas is Editor/Publisher of Open Media Boston.