Income tax is crucial, report says

If voters abolish the state income tax next month, the state would be forced to slash most agency budgets by more than 70 percent, according to a report by the Massachusetts Taxpayers Foundation that is scheduled to be released today.

Agencies and services that would experience the highest cuts to compensate for the loss of approximately $12.5 billion raised annually by the income tax include State Police, district attorney offices, courts, prisons, state parks, the Registry of Motor Vehicles, mental health services, and environmental programs, said Michael J. Widmer, president of the foundation. Widmer shared highlights of the reports during a telephone interview yesterday.

"It would be devastating," Widmer said. "It would hurt our economy both short and long term in a huge way."

Some programs, he said, would have less severe cuts. For instance, he said the state would have to fund at least three-quarters of current funding for local schools to cover various constitutional or legal mandates.

Carla Howell, chairwoman of the Committee For Small Government, which is pushing for the income tax repeal, said yesterday she had not seen a copy of the report, but believes the number is false. "Only funny math can come up with that number," said Howell, who estimates that eliminating the income tax would force state agencies to cut spending by 27 percent.

JAMES VAZNIS