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| Massachusetts Budget and Policy Center || ||Democracy. |
|Revenue Options and Tax Fairness |
To fund new investments in education and transportation--and prevent cuts to other vital areas--the Governor has proposed a tax plan that would 1) raise significant new revenue and 2) increase the fairness of our tax system. These two features of the Governor's plan are the subject of two new MassBudget factsheets.
The first, "Possible Reforms to the Governor's Tax Plan," analyzes four options that would raise roughly the same amount of revenue as the Governor's proposal without eliminating personal income tax deductions. The Governor's plan eliminates a number of these personal income tax deductions--many of which are popular and serve legitimate policy goals.
Currently, the tax system in Massachusetts is regressive, meaning that low and middle-income people pay a larger share of their income in state and local taxes than high-income people. "Examining Tax Fairness," our second new factsheet, describes the various causes of this imbalance.
In addition to these new factsheets, MassBudget has also updated "Effects of Raising Rates and Exemptions on the State Income Tax," an analysis of a proposed tax reform plan would would raise the state's income tax to 5.95%, increase the personal deduction, and set a single tax rate of 8.95% for all investment income.
|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. |
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