It's fuel for debate

(Report 3-3-09)

Business groups want 25 cents gas tax



by Jay Fitzgerald
DNN Reports!
Tuesday, Mar. 3, 2009

The gas-tax issue is fueling divisions within Boston’s business community.

Five business groups yesterday endorsed a huge 25-cent increase in the state gas tax - 6 cents more than proposed by Gov. Deval Patrick - as long as tough new reforms are enacted.

But two other powerful business groups - Associated Industries of Massachusetts and the Massachusetts High Technology Council - said they want to see extensive government reforms before any gas-tax hike is considered.

“We don’t think it’s appropriate,” Chris Anderson, president of the high tech council, said of the 25-cent increase idea, adding that the proposal “undercuts” calls for systemic reforms.

“We really believe the reforms need to be addressed first,” said Brian Gilmore, an AIM

spokesman.

But Paul Guzzi, head of the Greater Boston Chamber of Commerce, one of the five groups that endorsed the 25-cent plan, said fixing the state’s crumbling infrastructure and implementing reforms go hand in hand.

“One without the other really doesn’t solve the issue,” said Guzzi. The surprise endorsement of such a big gas-tax hike was also backed by the Massachusetts Taxpayers Foundation, the Massachusetts Business Roundtable, National Association of Industrial and Office Properties’ Massachusetts chapter and A Better City.

The groups said the state needs to address its huge backlog of transportation problems.

The groups’ plan - which would raise over $600 million a year - would be tied to reforms that include bringing MBTA employees’ retirement and health-care benefits in line with other state workers and ending the practice of paying transportation expenses with bond funds.

Patrick’s transportation czar, James A. Aloisi, yesterday praised the groups for taking a leadership stand on the issue.

But a Senate President Therese Murray spokesman said all the numbers floating around for gas-tax hikes prove that “we need to concentrate on reforms first.”

BURNING ISSUE: Paul Guzzi, CEO of the Greater
Boston Chamber of Commerce, joins a press
conference yesterday to propose a state
transportation plan. (DNN Staff photo)




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