June 23, 2009
It seems no one is sure who first uttered the old wisecrack “Light dawns on Marblehead,” but it seems that light has finally begun to dawn on Beacon Hill, as well, with talk that the state should devise a mechanism to divert more of its capital gains tax revenue into reserve accounts as a way of tamping down the volatility that comes with economic booms and busts.
A recent report by MassINC found that Massachusetts is the third most dependent state in the nation on capital gains revenues. Such monies are really a two-edged sword. On the one hand, Massachusetts is fortunate to have a concentration of educational, scientific, medical, financial services and high-technology businesses and institutions, whose prosperity during good times fills the state’s coffers to over-flowing.