Taxes
ALL TAXES REPORTS
Best Research Underscores Value of Fair Share Amendment for Massachusetts Residents
An extensive body of research shows that Fair Share would improve tax fairness, support economic and racial justice, and strengthen our state economy. The research contradicts inaccurate and/or misleading claims made by opponents. Very clearly, Fair Share would have a meaningful, positive impact on millions of people and every community throughout the Commonwealth.
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Fair Share Tax on Incomes Over $1 Million Would Generate at Least $2 Billion a Year
MassBudget estimates that the Fair Share tax on incomes over $1 million is likely to generate at least $2 billion a year in new revenue if approved by voters in November 2022. MassBudget assessed revenue estimates from three respected sources and considered important data differences and assumptions built into each of the three analyses. The following offers a brief overview of each analysis, along with MassBudget’s conclusion. The Massachusetts Department of Revenue (DOR) estimated that Fair Share would generate between $1.6 billion and $2.2 billion a year. The midpoint of this estimate was $1.9 billion. This estimate used 2015 income ...
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A Blast from the Past: Reagan-Era Tax Law Hits Hard
You are not alone if you had never heard of the Massachusetts “tax cap law,” or what is also known as “62F.” This Reagan-era law sets an artificial limit on how much tax revenue Massachusetts can collect, regardless of the current needs of the Commonwealth.
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Average Income in Massachusetts for Every Occupation Is Below $1 Million
According to the most current federal Bureau of Labor Statistics (BLS) data for Massachusetts (2021), average income for every occupation listed falls far below the $1 million threshold proposed in the Fair Share Amendment.
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Massachusetts’ Taxes Are About Average
Massachusetts currently has the highest per capita income of any state, but the Commonwealth lags many states when it comes to using those resources to support funding for education, health, human services, transportation and the like. Massachusetts is even below the national average.
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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 inherited wealth in the first place: Fostering Equality of Opportunity — The estate tax is Massachusetts’ only major tax designed to reduce how much individual economic success depends on being born into a wealthy family. Proposals to weaken the estate tax, such as by raising its exemption or excluding higher amounts, would literally be a gift to some of the Commonwealth’s wealthiest families at the expense of everyone else. Paring back the estate tax would cut ...
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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 Tax Changes From: Marie-Frances Rivera, Phineas Baxandall, Nancy Wagman, Kurt Wise __________________________________________________________________ Chairman and Members of the House and Senate Committees on Ways and Means, Tax collections have come in higher than estimated back when the FY 2022 budget was enacted. This is what people refer to as a tax “surplus.” This surplus, however ,does not mean that the state budget has already met the needs of the moment or that this is extra unneeded ...
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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 higher education” while responding to our state’s current revenue collections. As our analysis shows from the final Fiscal Year 2023 House budget proposal, our Legislature made a great first step in committing our public dollars to closing some equity gaps. We hope the Senate Ways and Means Committee will build on this and make the bold investments needed to further equity in Massachusetts. “Proposed large tax breaks for the very wealthy would harm our long-term ...
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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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