MassBudget: Building a Strong Economy: The Roles of Education, Transportation, and Tax Policy

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. Building a Strong Economy:  The Roles of Education, Transportation, and Tax Policy  Effective economic policies can create a more highly productive state economy and make it possible to improve economic opportunity and security for working families. Building a Strong Economy: The Roles of Education, Transportation, and Tax Policy examines the economic research on the relationship between effective investments in education and transportation and improved economic productivity.  In both cases the findings of the research are clear: investments that lead to a better educated workforce and more efficient transportation improve the productivity of a state economy. Failing to make those investments can lead to weaker economic growth and greater costs down the line. The paper also examines the economic effects of tax reforms that can fund those investments. Over the past several decades, incomes for most in our state have barely budged, while incomes for our highest-income households have grown rapidly. Our highest-income households also benefit most from the structure of our tax system: they currently pay the smallest share of their income in state and local taxes.  We examine the evidence on the likely economic effects of tax reforms that would bring the overall level of state and local taxation for very high income households closer to that of other residents. Studies of other states that have enacted such reforms have found little to no negative economic effects. When such reforms raise revenue for investments that improve the long term strength of the state economy they can be an important part of an effective state economic development strategy. To read the full report, please click HERE. The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. MASSACHUSETTS BUDGET AND POLICY CENTER 15 COURT SQUARE, SUITE 700 BOSTON, MA 02108

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