Boston Globe's Michael Levenson on the Governor's Tax Plan

Welcome back it is. Thursday the gateway to Friday of the financial exchange 933 this is how it looks in front of me on the board the Dow -- up 46 points at the open. NASDAQ up thirteen S&P is up five. You've got oil trading up 83 cents in 9507. A gold trading down. 1240 to 1670. In the ten year US treasury sitting at one point 866. Mr. -- -- right well if you read the story front page in the Boston Globe today Patrick pushes for income tax hike. Reporter on that story was Michael Levenson from the Boston Globe and he joins us today the morning Michael. It so what are your thoughts I mean -- it's I'm getting a lot of text messages that by the way asking me. About your story in the -- one specifically saying. Today's globe front page chart says that if you make 50000 -- you're taxes going up by a hundred bucks but if you double your income you make an under -- Your taxes are rising to three by 3000 dollars. How how does that work -- That's right I mean that. Run of the current increase will fall on those who make it pop. Entitled top fifth of taxpayers -- make more than a 100000 will keep their taxes go up on average at thirty dollars. All of those kind of below that level -- smaller. Was there any mention at all during his speech I didn't see it if it occurred. Any mention at all of cutting any expenses or is it simply a tax and spend. Proposal. He empty -- was our. Big tax increases and expanding programs the week before last week leading up to that was all about the global -- laid out what cost you later. -- -- doing all directed retiree health costs a business regulation of he set up his big plan by rolling out period of consolidation and -- last week. How is this receipt -- you went to -- by the audience that he is this something. They think I'm I'm trying to determine as to whether or not this is actually going to occur or is just rhetoric or. East clearly making a big big push for this -- reversed direction. The house speaker and senate president who were. Will really determine where there's -- ever becomes -- -- those. Pretty cool they had to take a look at. Presents -- -- long you know. Obama or if it ever happens so. This is far from becoming law but clearly the governor is spending a lot of political capital which could make -- reality. Is this proof that it's he's not gonna run for a third term in India's hire some higher office or just not being governor any mark as you had the action on the illegal aliens allowing them to get in state tuitions that it was very unpopular among many Massachusetts residents. This seemingly is is very unpopular. You know what what are his political aspirations or injury can do you have any insight. He says repeatedly that he doesn't want to run for a third and so I think without question I think. Clearly you know if you look at the -- -- his apartment as governor but first many years were reversed direction. Focused -- and scale back budget their budget and joke. He comes from so little beat you is streams are you know doing big things in government and this is EC school district has -- an opposite. He beat two really big things. Leaving a lasting legacy he's envisioning and trains from you know Berkshire's treaty to his car and the stock closed. Take education programs. Universal pre K you took things aren't always want -- which he was governor got to your left and try to make. Is there anybody besides the governor that thinks we need trained under the Berkshire's. I never heard of any great demand for it I've her I can see the demand for the eight. -- you know and that makes sense because there's tremendous traffic but. We think about the Berkshire's as the weekend destination I don't know like I don't see it. -- this is. The train it would connect to the Berkshire's New York City in the argument from folks out -- regions that you know that is true they have their major economic problem. People come out there -- And that's something for change who burden for our. They're art and called on the Arab summer taxpayer. You know that all of -- -- also about their big economic. Now he -- it does seem to have the same type a population base at the K past. Sure I think Aaron and an expensive project and you know that will be the question has been really necessary respect don't donors -- -- You know and taxpayer funds to build a train from -- York -- Departures it is and it economically you know sensible. Oh doesn't seem to be enemy but there wasn't a lot that I heard last night that made sense to me you don't raise taxes. When you have a slow economy that's taking money we -- got to eat you like EU received 2% pay cut on January 1. Now he's gonna take another 1% -- Outrage and you know that that the argument that. Opponents have been making -- pointing out that you know voters approved it roll back. And and part of frozen Bartlett -- never happened and now I'm congress doesn't. You know one point nine billion dollars in part actually is focused on the income tax. He says he recognize that is never -- can't make this happen. Is argument is that if we're kind of spur economic growth. In the future. You make as he calls of these big investment in transportation and education that's what drives our economy here. -- and economies as you have to. You know we camped living under debt and MBK -- and public roads and bridges. Can't -- relied on course the next one here as we have to get organized and. I I don't disagree that we have to modernize our transportation system but I don't think you tax people more DE there's a basic lack of understanding of fundamental economics right when you raise taxes it slows down on the economy. Or if there's an economist in the world that would argue that point you know so. I don't know pay a bit. Will be exactly the debate that will play a -- over the next six months Google -- -- which separate bill is not a popular. Raising taxes -- -- the legislature the governor announced and you know they may you'll and economic -- and that is double the spending that comes out of outweighs the negative effect of the -- All right well Michael like I appreciate your time great work on the article. And I hope -- keep up the that he keep up to keep the pressure up the future. Content will have an extra much. That's Michael Levenson Boston Globe. I I think it's on boston.com yeah it was an honest I'm gonna. Be our next guest is from Texas which and I have a soft. Spot for anybody from Texas I just love the Texas accent NASA -- her name's -- Wyatt. And we're going to be talking about General Motors and Ford stock in their products of course but stay with us -- Wyatt. South Texas money management joins us next on the financial exchange.