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Big ballot mistakes: Mass. rent control, tax cut proposals would backfire – The Boston Globe

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Big ballot mistakes: Mass. rent control, tax cut proposals would backfire – The Boston Globe


Both are appealing. Who doesn’t favor more affordable rents or lower taxes?

But both are bad ideas even though they attempt to address real economic challenges posed by the state’s high cost of living. Like most simple answers to complex problems, they would only make matters worse.

The rent initiative, backed by labor unions, would discourage new construction, which is essential to keeping a lid on lease rates. It would also decrease property values, putting a strain on municipal budgets.

The tax cut, pushed by business groups, would take a large bite out of state revenues, forcing difficult decisions about which services to eliminate.

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Here’s a quick primer.

What it would do: Filed by Homes For All Massachusetts, a coalition of housing groups, the initiative would peg allowable annual rent hikes to the rate of inflation (as measured by the Consumer Price Index), with a cap of 5 percent.

Landlords would be barred from raising rents after a tenant leaves. Owner-occupied buildings with four or fewer units would be exempt, as would new buildings during their first 10 years. Cities and towns couldn’t opt out.

The initiative would “protect tenants from big corporate investors who unreasonably increase rents, while allowing local landlords to earn a reasonable profit and enabling new construction to address housing shortages,” said Carolyn Chou, executive director of Homes for All Massachusetts.

Several big labor unions have endorsed the measure, including the SEIU Massachusetts State Council and the Massachusetts Teachers Association.

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Why it won’t work: Backers designed the proposal to sidestep the obvious flaw of rent control: that it chills new construction. Hence the 10-year exemption for new buildings.

But most apartment projects in Massachusetts take years to finance, permit, and build. Developers calculate their payoff over several decades, and a rent cap waiting at the end of year 10 changes the math.

The deeper problem is high rents in Massachusetts are a supply problem. There are not enough apartments and rental homes.

Not only do rent caps discourage new construction, they may encourage landlords to convert rental units to condos or reduce their investment in existing properties.

Moreover, evidence shows rent control can have unintended consequences.

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A working paper examining St. Paul, Minn.’s 2021 rent control ordinance, which was less severe than the Massachusetts proposal, found that property values fell 6 to 7 percent. The losses were driven largely by lower expected future rents being priced into valuations.

That kind of decline ripples through municipal budgets. Cities facing shrinking tax bases typically respond by raising rates, cutting services, or both.

“It would be catastrophic for the economy,” said Tamara Small, CEO of NAIOP Massachusetts, a commercial real estate trade group.

What it would do: Reduce the state levy on personal income to 4 percent from 5 percent, phased in over three years.

The initiative would put money into people’s hands and make sure the government is not growing faster than residents’ ability to fund growth, according to Jim Stergios, executive director of the Pioneer Institute, a business-supported think tank that filed the measure.

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“This is about making Massachusetts a place where people want to stay,” he said. Pioneer estimates the tax cut would lead to the creation of as many as 48,000 jobs and spur economic growth that would offset the loss of tax revenue within a few years.

According to backers, which also include the Massachusetts High Tech Council and the Massachusetts Competitive Partnership, the net annual revenue impact during the three-year phase-in period would be about $680 million. Following full implementation, state revenue growth would increase as an economic boost from lower taxes kicked in.

Why it won’t work: Tax cuts can modestly boost growth as consumers and small businesses spend the extra money. According to a report by the Center for State Policy Analysis at Tufts University, the median household tax bill would shrink about $1,250 each year.

But the economic boost won’t fully recoup lost revenue. Claims that cuts “pay for themselves” are not supported by the weight of economic evidence.

According to the Tufts report, the tax cut would result in a much bigger hit to state revenues than estimated by the initiative’s supporters: $5.1 billion a year when fully in place, or about 10 percent of total state tax receipts. The state Department of Revenue issued a similar estimate.

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“A cut of this size would more than offset the revenue gains from the millionaires tax and imperil efforts to balance the state budget and sustain core government programs moving forward,” the Tufts report said.

Massachusetts has a real cost-of-living problem, and voters aren’t wrong to demand action. But these ballot proposals offer short-term gratification without fixing the underlying problems.


Larry Edelman can be reached at larry.edelman@globe.com.





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Massachusetts

Meteor Lands In Cape Cod + Bus Crash Kills 5 From MA + Wind Storm Knocks Out Power To Thousands: MA Weekend

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Meteor Lands In Cape Cod + Bus Crash Kills 5 From MA + Wind Storm Knocks Out Power To Thousands: MA Weekend


MASSACHUSETTS — Residents throughout New England were simultaneously startled as a meteor that landed in Cape Cod caused a sonic boom this past weekend.

Meanwhile, a bus driver is facing charges after five Massachusetts residents died in a crash on a highway in Virginia.

Plus, another State Trooper was caught handling a wrong-way driver situation on Route 1.

Mysterious Boom Heard Across MA Was An Exploding Meteor, Experts Say

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The noises were heard around 2:11 p.m. Saturday, with people describing a sudden bang that rattled windows and even shook some homes. The American Meteor Society said that the booms heard were actually caused by a meteor about three feet wide entering the atmosphere near the border of Massachusetts and New Hampshire.

Residents as far as Ipswich and Johnston, Rhode Island, reported hearing and feeling the sensations. Meteorologist Nick Stewart shared satellite images from the National Oceanic and Atmospheric Administration, showing where the meteor entered the atmosphere and combusted while traveling at 75,000 miles per hour above the ocean.

Bus Driver Charged After MA Family Of 4, Worcester Woman Killed In VA Crash

Jing S. Dong, of Staten Island, New York, now faces two counts of involuntary manslaughter in connection with the collision, which occurred around 2:35 a.m. Friday on southbound I-95 near Quantico. Among those killed were a 45-year-old man, a 44-year-old woman, a 13-year-old girl and a 7-year-old boy, all from Greenfield, Massachusetts. All were in the Acura, which police said caught fire after the collisions. Police on Saturday evening identified the fifth person killed as Priscilla R. Mafalda, 25, of Worcester, Massachusetts, who was riding in the Suburban struck by the bus.

In total, about 44 people were transported to area hospitals, including three with critical injuries.

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State Trooper Hospitalized After Route 1 Wrong-Way Crash In Peabody

State Police said the trooper was hospitalized with non-life-threatening injuries after police acted in coordination to protect traffic and stop the driver, who was traveling southbound on Route 1 North in Peabody. The incident occurred not far from the location on Route 1 where State Trooper Kevin Trainor was killed when his cruiser was hit head-on in a wrong-way crash in Lynnfield last month. The driver in Sunday’s crash was also hospitalized and charged with operating under the influence of liquor, negligent operation of a motor vehicle, and driving the wrong way on a state highway.

Rapidly Expanding Grocery Chain Has Big Plans For MA

Sprouts Farmers Market is slated to launch up to 40 locations throughout the region in the coming years. Construction has begun for the first Massachusetts spot in Weymouth, which has an opening date of 2028. The Phoenix-based organic grocery chain has more than 480 stores in 25 states.

Saturday’s Meteorite Was ‘Fishy Squisher’ And NASA Knows Where To Find It In Cape Cod Bay

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Data from NASA suggest fragments of the meteorite lie in waters from the middle of the bay to about 10 miles northeast of the town of Sandwich. The agency said late Saturday it picked up radar signatures of the fragments from four radar sites, and termed the strike a “fishy squisher.” The meteorite entered Earth’s atmosphere about 40 miles above the Bay State and southern New Hampshire, creating the sonic boom. Water in the bombarded portion of Cape Cod Bay is about 100 feet deep.

35K Without Power As Winter-Like Storm Pummels MA With 55+ MPH Winds

Massachusetts residents throughout the North Shore were without power on Saturday morning as a winter-like storm tore a path of tree damage, downpours, and fierce winds throughout New England. Widespread tree damage was reported across the state, with the Massachusetts Emergency Management Agency reporting 34,228 customers without power as of 11:20 a.m. Wind speeds reached a high of 55 miles per hour. Temperatures dropped into the 40s with wind chills in the 30s as the storm arrived across the Bay State. The unsettled weather will continue through Monday and Tuesday before a warming trend takes hold later in the week.

See Also:

Cape Shoreline Named Among The Nation’s 10 Best, According To ‘Dr. Beach’

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Markey wins Mass. Dems’ endorsement as Moulton clears ballot hurdle in Senate race

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Markey wins Mass. Dems’ endorsement as Moulton clears ballot hurdle in Senate race


U.S. Rep. Seth Moulton, a moderate Massachusetts Democrat, secured enough delegate support Saturday to appear on the state’s primary ballot as he challenges incumbent U.S. Sen. Ed Markey in this year’s Senate race.

Yet even though Moulton cleared a key hurdle to continue his Senate bid, it was Markey who won the party’s endorsement after winning more than 50% of the delegation’s support.

“You have a choice, you have to decide what the future looks like and what you’re going to demand,” Markey said Saturday in front of more than 4,000 delegates.

Markey won nearly 73% of the delegates’ support, while Moulton won nearly 27% of the vote. Massachusetts Democratic Party rules require statewide candidates to get at least 15% of delegate support to appear on primary ballots.

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In heavily Democratic Massachusetts, the Senate primary contest is one of the most closely watched in the country as Moulton, 47, has centered his campaign on changing the status quo and demanding a generational shift in leadership.

If reelected, Markey would be 80 before his third six-year term would begin. While Markey has touted his stamina and embrace of progressive policies, questions about age have continued to swirl around Democratic candidates as they fight to take back control of Congress.

Incumbent Sen. Ed Markey is leading Rep. Seth Moulton, but if Rep. Ayanna Pressley were to enter the Democratic primary, it would change the picture, according to a new poll from Suffolk University and The Boston Globe.

In his nomination speech, Moulton argued that the Democratic Party needed more than “incremental change” and needed to start anew.

“It’s time for the generation that grew up with the internet, and will have to live for decades with AI, to lead our way through it,” Moulton said.

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Moulton only addressed his opponent briefly during his nomination speech, giving a passing nod on not waiting another six years for generational change and later calling on Markey to participate in multiple debates before the September primary. Currently, the two candidates have agreed to participate in one debate later this summer.

Markey, instead, took a more critical approach by attacking Moulton’s previous comments about transgender kids and accepting corporate PAC money.

“Massachusetts deserves better than a senator who scapegoats trans kids,” Markey said to loud cheers.

In 2024, Moulton caught flak from some members of his party for saying he didn’t want his daughters playing in sports against transgender girls. Critics said Moulton echoed Trump’s talking points against allowing transgender athletes in girls’ and women’s sports.

Moulton has since said his intent with that statement “was to point out that, as a party, we need to be willing to have difficult conversations.”

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Moulton, who enlisted in the Marines after the Sept. 11, 2001, attacks and served four tours of duty in Iraq, was first elected to the U.S. House of Representatives in 2014. He briefly launched a 2020 presidential campaign, but he dropped that bid after a few months.

Markey served as a Massachusetts congressman for nearly 40 years before winning the Senate seat in 2013. He fended off a challenge in 2020 from Rep. Joe Kennedy III in the Senate primary by turning to his progressive allies to overcome a challenge from a younger rival from America’s most famous political family.

The Massachusetts primary is Sept. 1.



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Randolph woman wins $1M lottery prize, plans to use winnings for home improvements

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Randolph woman wins M lottery prize, plans to use winnings for home improvements


RANDOLPH, Mass. (WWLP) – A Randolph resident has won a $1 million prize through the final drawing of the Massachusetts State Lottery “$4,000,000 Monopoly Doubler” instant ticket game.

Brenda Mellor of Randolph claimed the game’s tenth and final $1 million prize.

Brenda Mellor of Randolph. (Courtesy of the Massachusetts State Lottery Commission)

She selected the cash option and received a one-time payment of $650,000 before taxes. Mellor said she plans to use the winnings to pay for home improvements, including renovations to her roof and pool.

The winning ticket was purchased at The Variety Store at 2 Mazzeo Drive in Randolph. The retailer will receive a $10,000 bonus for selling the ticket.

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