Jan 16 Massachusetts Governor Deval Patrick on
Wednesday proposed hiking the state's income tax rate and
lowering sales taxes as part of a plan to invest nearly $2
billion in education and infrastructure.
In his proposed overhaul of the commonwealth's tax system
that he said would be fairer to taxpayers, Patrick said the
income tax rate should rise by 1 percentage point to 6.25
Massachusetts should also double the personal exemptions for
taxpayers while eliminating several itemized deductions, he
"There is no good time to raise taxes," Patrick, a Democrat,
said in prepared remarks. "I would not ask if I did not believe
in my heart that investing meaningfully today in education and
transportation will significantly improve our economic
Patrick also proposed cutting the sales tax to 4.5 percent
from 6.25 percent. He said sales tax revenue could then be used
exclusively to fund transportation, school buildings and other
"With these changes our sales, income and business taxes
will be comparable to and competitive with other states in the
region and beyond with which we compete," he said.
The proposal requires the approval of the Democratic-led
Massachusetts legislature. Patrick is expected to make a formal
budget proposal later in January.