This factsheet examines findings from the Council on State Taxation’s (COST) annual report examining the taxation of businesses in each state. The report accounts for all state and local taxes and finds that Massachusetts is a relatively low tax state for business.
This fact sheet examines the core elements of the “Pacheco Law”- the requirement that privatization efforts lead to savings based on improved efficiency and that they do not drive down the wages of working people – and describes the processes and steps the law requires.
The state earned income tax credit (EITC) helps providing a meaningful boost to the after-tax earnings of thousands of low-income working families. This Facts-At-A-Glance provides town-by-town estimates of tax filers who received the state EITC in 2013.
This factsheet describes the Massachusetts Film Tax Credit, one of the state’s most generous tax breaks, which provides movie producers with a tax credit of 25% of the cost of making a movie in Massachusetts.
Taxes are the primary way we pay for the things that we do together through government. As this Facts-At-A-Glance details, overall, the Massachusetts tax system is regressive, collecting a larger share of household income from lower-income households than it does from upper-income households.
Beginning in 1998, a number of significant changes were made to the Massachusetts tax code–including a series of phased cuts to the state personal income tax. These cuts have reduced our capacity to fund essential services.
Overall, the level of taxation in Massachusetts is in the middle of the pack when compared to the rest of the country. The Taxachusetts label is a legacy of the 1970s – and at that time the label had a basis in reality. Since the late 1970s, tax policy in the Commonwealth has changed dramatically, as described in this Facts-At-A-Glance.
This Facts-At-A-Glance describes a recent US Census report that compares how much is collected in taxes in each state to help pay for all those things we do through government. It finds that Massachusetts ranks in the middle of the pack.
The Governor recently announced the need to cut funding for school transportation, job training, health care, and other investments that protect the health of our people and our economy. One of the reasons for these cuts is the triggering of an automatic tax cut caused by a twelve year old law. This tax cut, which primarily benefits the highest income taxpayers, will cost the Commonwealth $140 million a year. It is part of a series of automatic income tax rate cuts that together will cost the Commonwealth $350 million this year.
Tax rates are only one among many factors that businesses weigh when deciding where to locate or expand. In Massachusetts, state and local business taxes are lower than in most other states.