Taxes

Recent

Fundamentally Flawed: 62F Formula Overstates “Excess” by $1.4 Billion

The $2.9 billion estimate of 62F “excess tax collections” recently certified by the State Auditor overstates these net Fiscal Year (FY) 2022 collections by $1.4 billion. The problem is not that the Auditor miscalculated but that the calculation as stipulated in the 62F statute fails to account for situations where taxes are received by the Commonwealth in one fiscal year, but corresponding, offsetting tax credits are not applied until the following fiscal year. This is one of the many fundamental flaws in the 1986 tax cap law (referred to as “62F”).

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Where Might Home Sales Be Subject to the Fair Share Amendment? A Local Breakdown

In the majority of Massachusetts cities and towns, no homes sold for a net gain of $1 million or more, meaning they wouldn’t be subject to any additional taxes under the Fair Share Amendment.

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62F Credits Benefit the Rich

The “tax cap law,” or what is known as “62F,” sets an artificial limit on how much tax revenue Massachusetts can collect, regardless of the current needs of the Commonwealth. This law in effect transfers to higher income households tax revenue paid by lower income households and does nothing to improve racial or economic equity in our state.

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ALL TAXES REPORTS

“Millionaire Tax” Would Make Massachusetts Tax System Fairer

Currently, the Massachusetts tax system is upside down: the highest income households pay a significantly smaller share of their income toward state and local taxes than the rest of us do. A “millionaire tax” would help turn our tax system right-side up.

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A Millionaire Tax is Necessary to Advance Critical Education Investments in Massachusetts

Federal pandemic relief has helped avert education cuts and added significant funds to expand services during the pandemic. But it is insufficient and too short-term to meet the Commonwealth’s existing promises to improve education, much less to make bold new investments.

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The Three E’s: Greater Transportation Funding Can Improve the Economy, Equity, and Environment

New sustaining revenue is needed for Massachusetts’ transportation systems, and no source of new funding is better scaled to meet the size of underinvestment than the Fair Share Amendment.

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FAQ: Fair Share Amendment Edition

Looking for more detailed information on the Fair Share Amendment being discussed here in the Commonwealth? Check out our guide to some common questions about …

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Using State Personal Income to Compare Taxes Across States

Comparing tax and spending policies across states in a meaningful way across states or over time can be complicated by differences in population size, economic strength, or the changing cost of living. To account for these challenges, MassBudget often analyzes spending or taxation as a percent of a state’s economy.

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MassBudget testifies at Joint Committee on Revenue hearing against the large tax cuts for the wealthy proposed by Governor

It is unwise to assume that the state has more revenue than it needs based on temporary pandemic relief, meaning this is not the time for the deep and lasting tax cuts,

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A “Millionaire Tax” Would Advance Racial Justice in Massachusetts

Together, the people of Massachusetts can build a better Commonwealth, one that advances both economic and racial justice. We can transform our communities by addressing …

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Testimony to end tax subsidies for purchasing private jets and other aircraft

To the Joint Committee on Revenue December 14, 2021 RE: Testimony in support of An Act Relevant to the Repeal of the Sales Tax Exemption …

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Testimony to expand the Earned Income Tax Credits for low-income households

To the Joint Committee on Revenue December 13, 2021 RE: Testimony in support of An Act to increase family stabilization through the earned income tax …

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New Federal Spending Makes It Crucial to Add State Funds for Education and Transportation

The federal and state governments act as partners to ensure high-quality education and transportation. In response to the COVID pandemic, the federal government has made …

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With “Millionaire Tax,” Massachusetts’ Top Tax Rate Would Compare Well to Top Rates in Other States

Why do we need new tax revenue in Massachusetts? In order to build an economically and racially just Commonwealth, it is necessary for our state …

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The Fair Share Amendment Helps Small Businesses: Public Investment, S-Corporations, and Million-Dollar Incomes in MA

All businesses in the Commonwealth depend on investment in public programs and infrastructure that ensure a well-educated workforce and reliable, far-reaching transportation networks. These public …

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Three Progressive Tax Policies to Help Small Businesses in Massachusetts

Our Commonwealth celebrates small businesses as a way for ordinary working people to build wealth and pursue a productive life more independent from the large …

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Fim da Desvantagem Fiscal Contra o Trabalhador Imigrante

Os imigrantes de Massachusetts sofreram riscos desproporcionais trabalhando na linha de frente durante a pandemia. No entanto, milhares deles e suas famílias que trabalham e …

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Ending the Tax Penalty Against Working Immigrants

Immigrants in Massachusetts have shouldered an outsized risk as frontline workers during the pandemic. Yet thousands of them and their families who work and pay …

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