What we’re now beginning to see is the constraints on the state’s capital spending,” said Andy Bagley, a spokesman for the Massachusetts Taxpayers Foundation. “We have enormous infrastructure needs, and this is a clear signal that we don’t currently have the resources needed,” he said. “We’re going to have to start making very difficult decisions.”
“There’s no question that the purpose of this measure is to increase progressivity in the state’s income tax code,” said Eileen McAnneny, president of the Massachusetts Taxpayers Foundation, which supports the current flat tax. “The unanswered question is whether this is a move towards a graduated tax or something in place of it.”
But just two months after passing the “tech tax,” as it had become known, Massachusetts repealed it. Opposition from the state’s business forces rained down pressure on lawmakers. The new law, they claimed, was putting them out of business. “It got very bruising,” says Andrew Bagley, research and public affairs director of the Massachusetts Taxpayers Foundation.