Tuesday, September 24, 2013

MassBudget: After the Tech Tax Repeal: Remembering the Big Picture

MassBudget  Information.
 Massachusetts Budget and Policy Center  Democracy.

After the Tech Tax: Remembering The Big Picture  
In order to strengthen our economy and improve the quality of life in Massachusetts, the FY 2014 budget included new investments to fix and improve our transportation system and to make higher education more affordable. 

One of the things that made such investments possible was $160 million in new revenue from a "tech tax" that covers computer design services and the modification of pre-written software. It now looks as if the "tech tax" is going to be repealed, without being replaced now by a new ongoing revenue source. In the longer term we are likely to see an ongoing debate in our Commonwealth about how best to pay for important investments in transportation, education, and other systems that play a critical role in helping people reach their full potential and enhancing the future prospects for our economy.

Our new factsheet, "After the Tech Tax Repeal: Remembering the Big Picture," describes a variety of ways to generate additional revenue to support our long-term needs.  We consider three basic approaches: 
  • Reforming or eliminating special business tax breaks     

  • Reducing opportunities for tax avoidance     

  • Reexamining other major tax cuts of the past two decades, including changes to the income tax that cost the state nearly $3 billion per year.   
Rather than an exhaustive list, "After the Tech Tax Repeal: Remembering the Big Picture" summarizes some of the revenue options we could consider as we think about the best, fairest way to improve our schools, roads, bridges, and public transit systems. 

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.

BOSTON, MA 02108
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