Massachusetts Economists' Statement in Support of Investments in Transportation and Education Financed by Progressive Taxes
Maintaining and expanding an efficient, sustainable transportation system is critical for Massachusetts businesses and the state's workforce. Similarly, in the global economy, the Commonwealth's most important competitive advantage lies in its skilled and educated workforce. But, years of budget cuts and erosion in the income tax have left the Commonwealth underinvesting in physical and human infrastructure threatening Massachusetts' future economic growth and prosperity.
Governor Patrick has proposed addressing the challenges of maintaining and improving transportation infrastructure and increasing the potential productivity of our future workforce through increased investments in education, from pre-school through higher education.
As economists, we believe that these investments are critical to improving the long-term economic strength of our state. We also realize that these goals cannot be attained without additional state revenue. As such, we support increasing personal income tax revenue because it is the most equitable and effective way to raise the sizeable funds needed.
In the short term, government investment coupled with increased taxes will boost overall economic growth as lower after-tax individual income resulting from higher taxes will be more than offset by higher public investment spending in the Commonwealth. Over the long term, these investments will increase state economic growth and well-being through increasing the productivity of our workers, lowering business costs and the personal cost of living, and attracting private investment that seeks a well-educated workforce and transportation infrastructure that works.
Affiliations are listed for identification purposes only and indicate no commitment on the part of the affiliations themselves.