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.
Because the Fair Share surtax would apply a 4 percent surtax only to the portion of a household’s taxable income above $1 million, the total tax rate of the vast majority of Fair Share-affected filers would be much lower than the top rate of 9 percent.
Based on industry data from the Warren Group on home sales in Massachusetts, previous analysis has shown how rare it is that a sale might generate taxable capital gains of $1 million or more. But what does the data say about home sales that might have created taxable income over $1 million in 2021?
ALL TAXES REPORTS
How has the crisis affected the state budget and what does this mean? MassBudget has compiled the answers to some commonly asked questions and we want to hear from you. Read the latest and share your thoughts!
Learn what federal relief though the CARES Act, the Coronavirus Relief Fund, and other recently passed legislation means for the Commonwealth during the public health crisis.
Responding to the COVID-19 Crisis: Filling Gaps in Federal Cash Support for Individuals and Families
Congress enacted billions of dollars in new direct cash assistance to individuals and families during the crisis, but there’s still work to be done to ensure people are not left behind. Learn what state-level solutions are available to fill the gaps.
Testimony to the Economic Roundtable: We must ensure collective well-being and economic security in the Commonwealth
Read the full testimony from our President, Marie-Frances Rivera, for the Massachusetts Legislature’s April Virtual Economic Roundtable, originally scheduled for April 7, 2020.
It’s a sudden economic freefall like no other. By some estimates, Massachusetts will have 473,000 COVID-induced job layoffs and furloughs by summer. Most people with jobs won’t make or spend as much in the months ahead.
What is the Rainy Day Fund? The Stabilization Fund — often referred to as the “Rainy Day Fund”– is a cushion for times when state …
We Must Provide Robust Economic Relief and Recovery for Vulnerable Populations and Children in Massachusetts Policy is the lever that we can pull to bring …
This series of briefs examines the potential effects of licensing undocumented drivers in Massachusetts. The briefs look at the effects on public safety, child health, law enforcement efficiency, and the economy and state finances.
Cities and towns rely on property taxes as their chief source of revenue to provide vital public services and infrastructure. Low- and moderate-income households tend to pay a larger portion of income in property taxes than those with high incomes, especially considering how some taxes get passed on from owners to renters. This paper examines why this is the case and what existing policies help make property taxes more progressive.Finally seven kids of state and local policy reforms are discussed that would redirect responsibility for property taxes towards those most able to pay.
Taxing the GILTI: By Reversing 2018 Policy, MA Can Fight Corporate Tax Dodging & Raise $450 Million a Year [Corp. Tax Series Pt.5]
In a costly decision, the Massachusetts Legislature voted in 2018 to allow businesses to exclude 95 percent of GILTI from Massachusetts taxation. This choice will cost the Commonwealth as much as $450 million in lost revenue in the current tax year (2020). This is revenue that otherwise would come exclusively from profitable, multinational corporations doing business in Massachusetts – and in particular, from ones that are choosing to game the tax code.
With a new commitment to increasing state K-12 education funding and the ever more obvious need to repair and upgrade our transportation systems, will lawmakers have the revenue to make the necessary investments in these and other budget priorities?
FY 2021 BUDGET PREVIEW: Will the Governor reboot his dependent deduction proposal or take a more targeted approach?
Will the Governor again propose to double the state’s dependent deduction, which wasn’t adopted by the Legislature, or will state lawmakers provide more targeted tax support for working families with greater need?
Statement Against Decoupling from IRC Provisions Governing Business Interest Expense Deductibility (163(j)) and the Taxation of GILTI
In 2017, the federal government adopted the Tax Cuts and Job Act (TCJA), giving very large tax cuts to corporations. Nationwide, businesses had their annual …
This latest report analyzes how amid a decades-long decline in corporate income tax share businesses avoid $1.4B in 2019 tax, and explores policy solutions that could help restore the balance. Interested in the finding the full corporate tax series? Read our other reports on how business taxes compare to other states, on the Massachusetts corporate minimum tax, and the Single Sales Factor.