Revenues declined 25% during the March-April period and are projected to be lower in the May-June period as the state closed the fiscal year. Revenues are $2.1 billion lower than what was forecasted, and, per an article from the Massachusetts Budget and Policy Center (MassBudget), that is going to worsen going into fiscal year 2021.
ITINs (Individual Taxpayer Identification Numbers) are issued by the IRS for tatt filing purposes to individuals who are ineligible for Social Security Numbers. ITIN filers include undocumented immigrants and other vulnerable groups who pay taxes through alternative means. There are an estimated 57,000 ITIN filers in Massachusetts, yet the CARES excluded ITIN filers and their families from receiving critical stimulus checks.
Child care programs and early educators serving birth-age 5 may become an endangered species following COVID-19.
Samantha Aigner-Terworgy, Department of Early Education and Care commissioner, shared that the lost monthly revenue for private pay to child care sites across the state is $248 million. The Care.com proposal for early educators to provide in-home care further threatens programs' sustainability. Exacerbating the issue, MassBudget forecasts revenue loss for the fall of FY21 to be $5-5.7 billion.
The Massachusetts Budget and Policy Center pegged the cost of providing cash benefits to ITIN filers, in an amount equal to the federal stimulus they'd receive if eligible, at $58 million. An estimated 57,000 Massachusetts residents live in households with an ITIN filer, according to the center.
Massachusetts Taxpayers Foundation ("MTF") estimates FY21 tax revenue to fall $4.4 billion below the modest benchmark established in early calendar year 2020, while the Massachusetts Budget and Policy Center projects a more dramatic $5 to $5.7 billion range for potential drop in collections. These staggering figures will continue to be impacted by rising unemployment due to business and school closures across the state.
Massachusetts lawmakers continue to weigh emergency measures. The Massachusetts Budget and Policy Center released a brief that provides options to support individuals and families in the Commonwealth where federal cash assistance falls short.
The Massachusetts Budget and Policy Center estimates the bill would cost $58 million, to provide payments to an estimated 57,000 ITIN filers and their dependents. This estimate may be low because FAIR's 2017 cost study estimated that there were more than 236,000 illegal aliens in Massachusetts. This burden on Massachusetts taxpayers would be in addition to the nearly $2.0 billion that illegal immigration already costs them.