Politics & Government

Rush Calls Williams' Commitment to No New Taxes an Election Gimmick

State Senate battle heating up with election on Nov. 2.

Democrat Mike Rush says that his opponent's tactic of signing a No New Taxes pledge is an election gimmick. Republican Brad Williams feels otherwise, so much that he sent a certified letter to Rush's house wanting him to take the pledge.

Both State Senate candidates offered their thoughts on taxes, the Citizens for Limited Taxation pledge and each other.

"I wanted to take the pledge because as a financial person in the private sector I have seen a pattern of tax increases across Massachusetts all different ways that are: a) hurting our business environment and driving jobs out of state, and b) unnecessarily increasing the cost of living for Massachusetts residents," said Williams, the Republican candidate for the Suffolk Norfolk State Senate election on Nov. 2.

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Rush, D-West Roxbury, and the current 10th Suffolk District State Representative, spoke about the pledge, "I think in terms of the way I look at it, a lot of these pledges come off as very gimmicky. I have a record. I don't have to make a pledge. I have a record of not raising taxes in a tough economy. I learned a long time ago not to raise taxes in a tough economy. I voted against increasing the alcohol and the sales taxes."

In Williams' letter to Rush he accused Rush of supporting a 2008 House Bill (4645) that he says raised the corporate income tax and is stopping corporations from coming to Massachusetts.

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Rush defended his vote saying that the bill actually reduces the corporate tax rate from 9.5 percent in 2008, down to 7 percent in 2011, and helps small businesses in the Commonwealth. The corporate tax rate in Massachusetts is currently a flat rate of 8.8 percent, which is regarded as one of the higher rates in the country. 

"You had small businesses that aren't multistate, then you have large corporations that could take a step around of their fair share in Massachusetts," said Rush. "It includes all small businesses. It was a pro-business piece of legislation. I voted in favor it to lower the corporate tax rate. In that letter from Brad Williams he's claiming the legislation increases the corporate tax rate, nothing could be further from the truth."

Williams felt otherwise. "I think the 2008 vote on corporate tax that increases corporate income tax in Massachusetts to fourth highest in the country really hurts the competiveness of the state when we're trying to attract employers and employees to the state," he said. "That's like putting out a sign that says, 'we are not open for business'."

Rush also defended why he didn't vote in 2005 to lower the income tax from 5.3 percent to 5 percent, which was supported in a statewide vote by Massachusetts' residents.

"One of the problems at that point in 2005, without a doubt, the burden would've shifted to the property tax owner, without a doubt," Rush said. "(Not lowering the income tax) was backed by business groups across the state. In 2005 the income tax wasn't reduced any further and money was used from the rainy day fund." Rush added that most people pay income taxes, but not everyone owns property.

Williams added that he's not against taxation, "We have to have taxes to pay for things. I think what we want to do is what we're trying to do - market Massachusetts to win jobs and win employers from other states to come open up shop," he said. "And one of the best ways to signal to them we want them here is a low tax environment."

Williams owns a small investment company called Boston Investment Advisers.

"I'm not advocating for no taxes. What we should be doing is looking at what New Hampshire does and how they do it. They don't have a sales tax and a personal income tax and it helps. A lack of a personal income tax benefits every small business in New Hampshire because small businesses pay taxes on personal income returns and by not having any personal income taxes they hire additional workers and there's more money for firms."


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