Mayor Thomas Menino of Boston is looking to tax non-profit institutions like hospitals and schools as a potential income source for the city. At the same time the Speaker of the House in Massachusetts Sal DiMasi is looking to cut local aid to balance the budget. First, I think Menino is doing the right thing, looking at the schools in Boston. Many of these institutions have millions of dollars in land assets and seem to be endlessly expanding into the city. While they are providing a great service to the city they are also not paying their fair share. I am not saying the taxes need to be crippling but they need to pay something. And let’s face it, these programs have become for profit institutions.
Taking aside certain non-profits, I want to talk about the second article a little more. Cities and towns in Massachusetts have had to raise property taxes to make up for a lack of state funds lately. Taking aside the usual left leaning platitudes, our country is not comfortable paying taxes even when the benefits to the nation are clear. Mitt Romney, while governor, tried to lower taxes to 5 percent and was somewhat successful but also added more corporate taxes and ended certain tax loopholes. This year in Massachusetts there was a ballot question to end the income tax that was shot down by the people of this state in a convincing fashion, a similar provision in 2002 was closer but still did not pass. I think this lowering of the income tax rate lead to the problem that DiMasi and Governor Deval Patrick are facing.
Barack Obama was harped on for saying he would raise the tax rate on the richest 1 percent of the people from 36 percent to 39 percent. People cried that it would destroy the economy, that businesses would leave in droves, and that it would pay for wasteful government projects. Yet, these things happened ANYWAYS with a lower tax rate. The economy is in a bad spot, businesses have been outsourcing to India since Bush took office, and there are billions of dollars unaccounted for in Iraq by government contractors.
But what drives people to think that higher taxes are a bad thing? Taxes, in my mind, are need in a society that looks out for one another. Taxes pay for schools, roads, military, hospitals, research,and all sorts of things that keep our nation strong. No one would suggest that we have a crippiling tax rate. Do I wish there was no waste in government? Yes of course but it is bound to happen but starving the beast or privatizing everything will not solve our problems. However, this country really needs to take a look at its attitude toward paying taxes and using taxes.
