Taxes

Recent

Memo to Governor Healey on Ways to Ensure Effective Implementation of the Fair Share Amendment

As Massachusetts voters have amended the state constitution to include a 4 percent surtax on taxable income over $1 million, MassBudget would like to offer policy suggestions to assist the Commonwealth in protecting this revenue and ensuring that it is directed to education and transportation, as specified in the amendment.

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Letter to Governor-elect Healey and Lieutenant Governor-elect Driscoll on a Family Tax Credit

A letter to Governor-elect Healey and Lieutenant Governor-elect Driscoll on a consolidating different family tax supports into one simpler, fully refundable Family Tax Credit.

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“Excess” as Mirage: How the 62F Tax Cap Distorts Our View of Massachusetts Tax Revenue

The 1986 tax cap law, also known as “62F,” artificially limits the amount of tax revenue available to address priorities like affordable, quality childcare, safer public transportation, and affordable housing. Moreover, there are flaws in the 62F law and its underlying formula. 62F tells a story about revenue in Massachusetts, but it is misleading.

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ALL TAXES REPORTS

Four Reasons We Need Strong Estate Taxes

Explainer via Napkin Finance With Legislators debating potential changes to taxes on large estates, it’s important to remember why we have taxes on the transfer of …

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Current Estate Tax Proposals Would Give Largest Benefits to Wealthiest Estates; Alternative Method Would Fix This Problem

The tax on inherited estates is Massachusetts’ only tax that directly reduces wealth inequality. Although the pandemic has highlighted disparities between rich and poor families, the Governor and some in the Legislature have proposed changes to the estate tax that would largely benefit the state’s wealthiest households.

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FAS 109, Single Sales Factor Apportionment, and Deferred Corporate Tax Deductions

As the Legislature considers elements of a possible tax package, it is worth focusing on a number of interrelated corporate tax issues that are now – or may become – part of the mix. At the heart of these interrelated issues is a problematic, state-level corporate tax break referred to as FAS 109.

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Options to Adjust the Estate Tax While Retaining Revenue and Progressivity

The Massachusetts Budget and Policy Center was asked to outline options for changes to the estate tax that would preserve revenue, maintain progressivity, and also cut taxes on or exempt estates with a taxable value up to around $1.2 million. Since households subject to the estate tax are among the state’s wealthiest taxpayers, any reductions to revenue from the estate tax represent a transfer of wealth from the Commonwealth to its wealthiest families. Even so, some options are better than others.

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Options for Targeted Tax Relief and a Warning About Estate Tax Changes

June 10, 2022 To: House and Senate Ways and Means Committee members and staff Re: Options for Targeted Tax Relief and a Warning About Estate …

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PREGUNTAS FRECUENTES: la Enmienda de Parte Justa (Impuesto a los millonarios)

¿Busca información más detallada sobre la Enmienda de Parte Justa que se está debatiendo aquí en la Commonwealth? Consulte nuestra guía para responder a algunas de las preguntas más comunes sobre este tema y obtenga más información.

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We’re Not Out of the Woods Yet

“Yesterday, Senate President Karen Spilka rightfully noted the need to balance “targeted spending investments to a number of crucial areas, such as housing, childcare and …

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Earth Day is a Time to Consider Better Responses to High Gas Prices: Free Public Transit and Other Ideas

Higher gas prices are causing anxiety for many and are eating away at the meager incomes of low- and moderate-income families. Politicians are promoting a number of ideas to provide consumers with some relief. A very popular idea—a gas tax holiday—is a bad idea.

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“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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