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Compromise on Taxes Likely in Mass. Budget

MA State BudgetBOSTON (AP) — Gov. Deval Patrick’s ambitious budget plan that calls for major tax changes to support new spending on education and transportation faces an uncertain road in the Legislature.

The governor was among the first to concede that compromise with lawmakers may be necessary.

The Legislature has a well-documented independent streak when it comes to tax and spending matters.

Patrick has proposed hiking the income tax from 5.25 to 6.25 percent, and lowering the sales tax from 6.25 to 4.5 percent.

Unlike last year, legislative leaders haven’t ruled out new taxes, but they have taken a cautious approach to Patrick’s proposals.

Michael Widmer of the nonpartisan Massachusetts Taxpayers Foundation says he doubts lawmakers will approve such sweeping changes and may opt for a more modest tax plan.

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