Category: Taxes

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Effects of Raising Rates and Exemptions on the State Income Tax

This Facts At A Glance examines a tax reform option that would make changes to the way the Commonwealth taxes wage and salary income as well as investment income. The Department of Revenue recently examined this reform option and estimated that the proposal’s combined changes would generate between $1.33 billion and $1.41 billion (middle of range = $1.37 billion) in new revenues in its first full year after implementation.

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Tax Policy Proposals in the Governor’s FY 2014 Budget

In his FY 2014 budget, the Governor funds new investments in education and transportation and reduces cuts to other programs using revenues generated through a series of changes to tax rates, income tax deductions, and business taxes.

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Tax cuts that continue to haunt Mass.

Tax cuts from the late 90s and early 2000s have kept us from investing in our children, our communities, and the future of our economy.

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A First Look at the Governor’s Proposals on Education, Transportation, and Revenue

In recent days, the Governor has proposed: 1) increased funding for education; 2) fixes and improvements to our transportation system; 3) a revenue plan to pay for these initiatives. We analyze how they would affect Early Education & Care, K-12, Higher Ed., Transportation, the Sales Tax, and the Income Tax.

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Massachusetts Ranks 25th in Taxes in FY 2010

State and local taxes in Massachusetts are roughly in line with the national average, according to data released today by the census bureau. Massachusetts ranks 25th among all states—meaning there are 24 states with a higher level of taxation and 25 with lower rates.

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Massachusetts Ranks 33rd in Taxes in FY 2009

On October 31 the U.S. Census Bureau released its annual update of State and Local Government Finances, providing national data for Fiscal Year 2009. The amount of state and local taxes paid in Massachusetts as a share of total personal income was 9.8 percent in FY 2009. By this measure, Massachusetts had lower taxes than 32 other states. Measuring taxes as a share of total personal income allows for a meaningful comparison among states.

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Allowing for More Meaningful Comparisons: Taxes and Spending as a Share of Personal Income

This Facts At A Glance describes methodological issues regarding the comparison of tax and spending levels between different time periods or different states.

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The Income Tax

Massachusetts has an income tax rate of 5.3 percent. The income tax is the single-largest source of revenue for the state, with collections totaling $10.1 billion in Fiscal Year (FY) 2010. Forty-three states have an income tax, several with rates as high as 11 percent. Of the states with an income tax, Massachusetts is one of only seven states that do not have a higher income tax rate for those with higher incomes.

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Extending Improvements to Tax Credits for Lower-Income Workers and Their Families

This fall, Congress will debate whether to extend tax cuts adopted over the past decade. While there appears to be general agreement among policymakers that the major middle-class tax cuts should be extended — and significant debate about whether the tax cuts that benefit only the highest-income taxpayers ought to continue — there has been less attention paid to the fate of tax provisions that are targeted at lower-income working families.

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Understanding Our Tax System: A Primer for Active Citizens

This primer provides an overview of the Commonwealth’s tax system as well as clear information and analysis of how Massachusetts compares to other states and how our state’s tax system has changed over time. Also please see individual fact sheets on the income tax, the sales tax, tax fairness, and on the “Taxachusetts” label.

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