A binding referendum on the ballot in Massachusetts has the potential to turn the commonwealth into a laboratory experiment in tax policy.
A yes vote on Question 1 would abolish the state income tax.
This could result in budget cuts, increases in Sales and Property taxes, and probably increases in every other type of tax the state levies.

Ballot Question 1 - Boston.com

This is something that would never come from the legislature, it could only come through the referendum process. Since there is no provision for national referendums in the Constitution, abolishing the federal income tax depends on Congress, so it's a non starter.

So this raises a number of questions.

Is this a good idea?

What will be the consequences?

Should the US add the initiative petition to the Constitution by amendment so this could happen at a national level?




And just a tad more info, it doesn't look like this will happen according to polls
Poll on ballot questions shows voters oppose axing state income tax - MassLive.com

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“ The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”

Adam Smith , The Wealth of Nations 1776

"We have always known that heedless self-interest was bad morals; we know now that it is bad economics"
FDR's second Inaugural Address

Sounds like a fantastic idea to me. It is amazing to me how many of the states with budget shortfalls never mention actually reducing spending! The income tax was Unconstitutional, which is why we needed an amendment in the first place and was only meant to be used in war time initially. Getting rid of the income tax could result in the return of the trillions of dollars being held in offshore banks to be invested here.

In Nevada we have a Constitutional mandate to balance the budget and ,thanks to an idiotic Supreme Court ruling, a Constitutional mandate to provide funding to education before other services. Cap it off with the eminent implementation of all day kindergarten. The Nevada voting populace are a confused bunch of people. This states legislature now has every reason to implement major tax hikes in all areas. I just hope the Massachussetts people are more pragmatic than the folks out here.

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Is our children learning? -George W. Bush

"I think—tide turning—see, as I remember—I was raised in the desert, but tides kind of—it's easy to see a tide turn—did I say those words?"—Washington, D.C., June 14, 2006

"[T]he illiteracy level of our children are appalling."—Washington, D.C., Jan. 23, 2004

Texas doesnt have a state income tax - never has.

Tennessee doesnt have state income tax either.

Last I checked, both states were doing fine.

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In case you were wondering, yes, there really ARE more idiots these days....technology has made natural selection obsolete.

Eric is right, Massachusetts isn't really a pioneer here.

Anyway, while I probably won't end up voting, I'd vote to keep it. Part of it is because I'm a college student at a state university, of course, but another is that getting rid of nearly half of the state revenue in a span of two years (particularly when the economy's not too hot) would create a budget crisis. I might support a much more gradual reduction, or even a rate of 2 or 3%... but I think the measure as it is is too radical.

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No man is an island...
Each man's death diminishes me,
Because I am involved in Mankind.
And therefore, never send to know
For whom the bell tolls;
It tolls for thee.
—John Donne

I really need to know the entire picture before I can say anything about whether it's good or bad.

In general I support moving taxes away from business and labor to consumption, personal capital/property and usage (example: roads are payed by those who use them) as long as safeguards are implemented to prevent a loss in purchasing power for the workers at the bottom.

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Terrornoia: how the propa-ugandists used the omni-territorialization of terror for the fundamen-talismanization of criminal law in a multi-cultus-ritualistic society

If by laboratory experiment you mean they might follow the well-established path of some other states, you're right.

Florida, for example, has no state income tax.

Matt

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De duobus malis, minus est semper eligendum

Ajax, aren't you the same guy that was talking about returning to school and having the "govt" pick up the tab? So what is it, idiotic? sweet? sweetly idiotic?

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The Nevada mandate to fund education before all other programs is idiotic. Taking advantage of available government funds is intelligent. Surely you can't be that confused?

Oh, and Nevada also has no state income tax.

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Is our children learning? -George W. Bush

"I think—tide turning—see, as I remember—I was raised in the desert, but tides kind of—it's easy to see a tide turn—did I say those words?"—Washington, D.C., June 14, 2006

"[T]he illiteracy level of our children are appalling."—Washington, D.C., Jan. 23, 2004

Has anyone ever repealed an income tax in modern times?
New Hampshire has no income tax and no sales tax, and it's right next door.
Property taxes are 3 times as high as Massachusetts, and they have no major medical facilities, if they need a big medical procedure, they go to Boston.

The question would become how to redistribute the tax burden, by raising other taxes, there would be some cuts, the state has to balance the budget, but the state would have a higher sales tax, and higher property taxes.
So how do you do that?

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“ The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”

Adam Smith , The Wealth of Nations 1776

"We have always known that heedless self-interest was bad morals; we know now that it is bad economics"
FDR's second Inaugural Address

Yeah this is nothing new Goober, we have the best system of any state imo, and its fine and dandy.

However i don't support it at the national level, the idea of a fairtax system is absurd.

Any particular reason you called me Goober?
Why do you think so? We did fine without one for quite some time, and I fail to see the true need for one.

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In case you were wondering, yes, there really ARE more idiots these days....technology has made natural selection obsolete.

Are you saying that Texas are able to finance schools, limited healthcare, police, and firefighters solely through sales tax?

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It all comes down to this on election day: Are you a racist, or do you look down on spastics?

Gort told me (before he died) that he paid 17% in federal state tax. That sounds extremely high considering that we europeans only pay 1% to our federal state - the EU.

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It all comes down to this on election day: Are you a racist, or do you look down on spastics?

No i was telling Goober that, just backing your quote and going a bit further to what this would equate to at a national level...i was responding to him, quoting you, not to you directly...sorry for the confusion.

A national sales tax system would effectively gut the IRS which would, for a start leave millions of folks unemployed.

But also from every determination by the last administration, it would lead to more cost and money going to taxes, i'll see if i can find some of the writtings on it.