Tuesday, June 13, 2017

MassBudget: Research on Constitutional Convention proposal

MassBudget Backgrounder
 Massachusetts Budget and Policy Center  Democracy.

Background Research and Data Related to Wednesday's Constitutional Convention on the Fair Share Amendment
The state Legislature is expected to convene Wednesday to vote on the Fair Share Amendment, a ballot initiative that would provide revenue for education and transportation by placing an additional four percent state surtax on income over $1 million. If approved, the measure would move toward the ballot in November 2018. MassBudget research in the following reports and fact sheets provides related data and analysis:
Building a Strong Economy: The Roles of Education, Transportation and Tax Policy: This paper analyzes the evidence on the short and long term effects of investments in education and improving our roads, bridges, and public transit systems. Detailed studies find that effective investments in improving the education and skills of the workforce and improving transportation infrastructure can have long-term positive effects on a state's economy.
Funding Improvements for Schools, Roads and Public Transit with Tax Reforms that Improve Fairness: This paper looks at the share of income paid in state and local taxes by high, middle, and lower income people. The data shows that in Massachusetts, as in other states, the highest income households pay the smallest share of their income in state and local taxes. The data also shows that incomes have grown more rapidly for very high income households than for the rest of the population.
Maintaining an Effective Transportation System: Examines official data showing how recent levels of investment are not enough to keep our roads, bridges and public transit system in good working order. The data show how different amounts of future investment would affect the condition of these systems.
How S-Corps and Other 'Pass-Through' Income is Taxed and the Effects of Proposed Tax Reforms: This paper describes how S-corps and other pass-through businesses are taxed and how they would be affected by state and federal tax reform proposals.
The Evidence of Millionaire Migration and Taxes: This paper examines the most thorough and careful studies of how high-income taxpayers respond to changes in tax rates.  Those studies consistently find that tax rates influence the residence decisions of only a very small share of such households. Instead, high-income people-like other people-overwhelmingly choose where to live based on work and business opportunities, family and social connections, and the draw of an agreeable climate.

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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