When the budget hole is big and deep it makes sense to stop digging it bigger and deeper, right? Apparently not, according to some Massachusetts lawmakers. The state House of Representatives has approved a bill that would reduce the tax on capital gains income for start-ups.
We agree with Noah Berger of the Massachusetts Budget and Policy Center, who says, “There is very little evidence of what they would do to help the economy, and they are fairly costly over the long run. The basic question is whether it is worth making cuts in other parts of government, like education or local aid, in order to pay for the new corporate tax cuts.’’