Mass. group wants $2B tax hike; higher income tax

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BOSTON (AP) - A coalition of unions, service groups and municipal officials is calling on Gov. Deval Patrick and Massachusetts lawmakers to back a hike in the state income tax to help fend off budget cuts.

The group is pushing for an increase in the state income tax from 5.25 percent to 5.95 percent while also increasing the personal exemption they said would ease the burden on low- and middle-income residents.

The group also wants higher tax rates on investment income.

The group - including the Massachusetts Teachers Union, the Massachusetts AFL-CIO and several city councils and select boards - said the plan will raise about $2 billion to improve schools, repair infrastructure and expand economic development.

Anti-tax activists are pushing back against the call for new taxes saying reforms and better management should come first.