Critics rip DeLeo’s gas tax hike proposal

Critics are blasting the cost of living increase that would accompany gas tax hikes, boosted fees for ride-hailing services and costs to corporations laid out in a House proposal to rake in over a half a billion taxpayer dollars to fix the state’s transportation woes.

“It was just six years ago that the people of Massachusetts spoke out clearly that they didn’t feel that Beacon Hill was looking out for their best interests in raising the gas tax,” former state representative and U.S. Senate candidate Geoff Diehl told the Herald. “It seems like motorists and commuters who can least afford it right now are being asked to foot the bill for a lack of scrutiny and management of transportation dollars.”

Diehl and Holly Robichaud, a Republican strategist who successfully fought to repeal a gas tax hike in 2014, argued that the Legislature is ignoring the will of the people with the two bills proposed by Speaker Robert DeLeo and some of his top deputies Wednesday.

“Beacon Hill is obviously tone-deaf. The people spoke clearly on gas tax hikes,” Robichaud said. “They did not pass it last year so we could not repeal it. Now they are passing it in an election year, so we will repeal them.”

The legislative package calls for a 5-cent gas tax increase, bringing it up to 29 cents per gallon, and a 9-cent increase on diesel fuel to 33 cents per gallon. Ride-hailing fees would jump from the current 20-cent rate by $1 for single-use rides and $2 for luxury rides, the corporate minimum tax would rise from $456 to up to $150,000 and a rental car sales tax exemption worth $110 million would be eliminated.

“Raising rideshare taxes by over 500 percent could hurt low-income riders and reduce the transportation options available, especially for those outside Boston,” Lyft spokeswoman Campbell Matthews said. “We support public transit but this plan is damaging public policy and must be revisited.”

State officials estimate that the gas tax increase will raise between $150 million and $175 million, the diesel tax will bring in $32 million, ride-hailing fees between $130 million and $145 million and the corporate tax increase between $100 million and $150 million in annual revenue. In total, the measure is expected to bring in between $522 million and $612 million every year.

“When it comes to our transportation system, revenue can’t wait. Revenue can’t wait any longer,” DeLeo told reporters when unveiling the legislation. “Our residents, our communities and our economy are dependent on an immediate source of revenue.”

Exactly how that money will be spent is ambiguous, with the only new revenue designations accounting for $27 million to the MBTA and $27 million to the Regional Transit Authorities.

“Massachusetts is a wonderful state, if you can afford it. Under the Speaker’s plan, fewer taxpayers will be able to keep up with the increased cost of living,” Massachusetts Fiscal Alliance Spokesman Paul Craney said. “These measures make it harder for people to make their home here and do business in the state and will only hurt the middle class — especially workers who have to drive.”

from Boston Herald https://ift.tt/38Z16Eu