Featured Reports

Sweeter than SALT: Highest-Income Households Get Federal Tax Cuts More Than Twice SALT LossesJanuary 11, 2018

The federal government has enacted very large tax cuts targeted mostly at higher-income taxpayers. The resulting loss of an almost $1.5 trillion in federal revenue is likely to lead to cuts in federal support for programs that are important to people in Massachusetts and to the state budget. Amid these deep tax cuts, a new federal limit on the deductibility of state and local taxes (SALT) has received a lot of attention. Households that itemize deductions and pay over $10,000 in combined state and local taxes will no longer be able to deduct more than this amount when calculating their taxable income for federal taxes.

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How Slow Sales Tax Growth Causes Funding Problems for the MBTAJanuary 10, 2018

Almost 20 years ago, a penny of the sales tax was dedicated to the MBTA to be a steadily growing source of revenue for the transit system. But despite some help from the Legislature, the sales tax transfer has grown slower than the economy, creating a persistent gap between the projected funds and actual sales tax transfers. Sales taxes have underperformed for the MBTA as a result of a shift to services, some transactions moving online, and exclusion of fast-growing meals tax revenues from the MBTA. An appendix explains the formula for determining the MBTA sales tax transfer and how other sales taxes are allocated.

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To participate effectively in our democracy, people need clear and reliable information about policy choices facing the Commonwealth. MassBudget makes that information available to everyone, providing independent research and analysis of state budget and tax policies, as well as economic issues, with particular attention to the effects on low- and middle-income children and adults.

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