IRS data shows "High-Income Households Are Not Fleeing Massachusetts"

"Internal Revenue Service (IRS) data show that Massachusetts has low rates of out-migration among high-income households compared to other states. As a consequence, delivering large tax cuts to these few households to stem a non-existent exodus is misguided. Moreover, the best research shows that state tax levels have little impact on the decisions of high-income households about where to live. 

At the same time, tax cuts aimed at these few households would sacrifice revenue needed for public investments that address the challenges working families in Massachusetts face. These include the high cost of housing, childcare, and post-secondary education, as well as unreliable transportation systems.

A forthcoming review of IRS data from 2011-2020 (the most current such data available) by the Center on Budget and Policy Priorities shows that Massachusetts has a lower rate of out-migration among high-income households than all but nine other states.1 Notably, the Massachusetts average annual rate of out-migration among high-income households is lower than rates in seven of the nine states that have no income tax at all. 

(Presenting out-migration data as rates – rather than simply by the total numbers of movers –  allows a proper comparison among states, regardless of differences in the states’ overall population sizes. It also makes sense to look directly at out-migration separate from in-migration because there can be different issues driving these decisions.)"

Continue reading the article online -> 

https://massbudget.org/2023/04/06/high-incomes-are-not-fleeing-ma/ 

IRS data shows "High-Income Households Are Not Fleeing Massachusetts"

MassBudget: "Envisioning Equity: Federal Relief for Mass. K-12 Schools" - July 29 (webinar)

Join @MassBudget  and sponsoring organizations (including CfJJ) on July 29 for "Envisioning Equity: Federal Relief for Mass. K-12 Schools". Register through the link below.  

Register for the webinar -> http://BIT.LY/K12ARPA 

Shared from Twitter: https://twitter.com/MassBudget/status/1419720707320296399

MassBudget: "Envisioning Equity: Federal Relief for Mass. K-12 Schools" - July 29 (webinar)

RSVP for "Housing to Build a Just Recovery," Envisioning Equity Pt. I Recap, and more

Claim your free tickets today and learn how housing policy can support a just recovery from the pandemic.

September 28, 2020 RSVP for Envisioning Equity Part II: Housing to Build a Just Recovery The pandemic and recession have created a new housing crisis across the Commonwealth as renters struggle to pay rent and homeowners struggle to meet their mortgage payments. But this crisis is hitting communities of color and low-income communities hardest, tearing the cover off long-standing, structural housing inequities. Join us on Tuesday, October 6th from 4-5 pm to hear from our esteemed panel of housing experts. They will discuss housing policy challenges from the national, state, regional, and local perspectives and look at ways that antiracist policy choices can help build housing for a just recovery. The panel will include: Peggy Bailey, Vice President for Housing Policy, Center on Budget and Policy Priorities Keith Fairey, President & CEO, Way Finders Lisa Owens, Executive Director, City Life/Vida Urbana Robert Terrell, Member, Roxbury Neighborhood Council Moderator Vanessa Calderón-Rosado, CEO, Inquilinos Boricuas en Acción Host Marie-Frances Rivera, President, MassBudget Register Today! https://us02web.zoom.us/webinar/register/WN_4_gBYGskSM6MnhNok-WwSg Watch: Equitable Education through the Crisis Thank you to all of our panelists and attendees for the first session of our Envisioning Equity series. Were you unable to attend? Watch the full webinar today:   https://www.youtube.com/watch?v=7YRE7S_j8ws #ICYMI: MassBudget in the News Read President Marie-Frances Rivera's latest opinion piece in MassLive on the need for increased federal relief to help address multi-billion state revenue shortfalls. Senior Policy Analyst Phineas Baxandall provided his take on unemployment and what the economy needs to recover in Commonwealth Magazine.

Massachusetts Budget and Policy Center | 1 State Street, Suite 1250, Boston, MA 02109 Sent by rwilliams@massbudget.org powered by Try email marketing for free today!

MassBudget: COVID-19 - Updates: Progressive Revenue Amid the Pandemic

"In this week's video update, our President, Marie-Frances Rivera, discusses shorter and longer-term policy solutions to ensure just recovery from the pandemic's impact on the Commonwealth, with Senior Policy Analysts, Phineas Baxandall and Kurt Wise, and Communications Director, Reggie Williams."

https://youtu.be/XNsogxfW0c4





For more from MassBudget:  https://medium.com/massbudget

MassBudget’s Week-in-Review: COVID-19 Response

"First, I want to say my heart is with each of you as we all struggle with the impacts of this COVID-19 crisis on our health, lives and families.

In a matter of weeks, our world has changed dramatically. We, at MassBudget, are working hard (remotely) to share reliable information (https://medium.com/@MassBudget) on the most urgent issues facing our Commonwealth. We are providing real time policy analysis and data to legislators. We are working in partnership with coalitions to focus our research on the most urgent solutions. We are channeling the unique expertise of our team of analysts to tackle the important challenges ahead.

As a growing number of Massachusetts residents fall ill and thousands lose their jobs everyday, we are all vulnerable. In the coming days and weeks, I look forward to working in partnership with you to focus our policy solutions on economic recovery efforts, protecting kids and families, all while centering racial and economic equity in our solutions."

In solidarity,

Marie-Frances Rivera
President, MassBudget

Read about the 'rainy day fund'
https://medium.com/this-is-not-a-drill/its-raining-an-faq-on-using-our-state-savings-account-to-respond-to-the-covid-19-crisis-26e19a749a17

Unemployment insurance 101
https://medium.com/this-is-not-a-drill/unemployment-insurance-101-547c7d8ca950

MassBudget’s Week-in-Review: COVID-19 Response

MassBudget: How the state budget and state revenues can improve health equity

MassBudget: How the state budget and state revenues can improve health equity

How the state budget, state revenues 
can improve health equity

The state budget and the revenues that support it are key tools in helping to improve the health of people in Massachusetts. It also can help improve health equity, in which every person - regardless of their race, ethnicity, gender, zip code, age, or other factor - has an equal chance to thrive. To this effect, the state budget funds public schools, housing, transportation, and other supports that are essential to our well-being. 

In our latest report, Going Upstream: How our State Budget, Revenue, and Policies can Improve Health, we use the analogy that "upstream" conditions affect health outcomes "downstream." Lawmakers can create laws that address some of these social needs and social conditions. Recent examples of this include passage of the Student Opportunity Act - the state's landmark law to overhaul its school funding formula - and recent increases to the state's minimum wage. 

Education, socioeconomic status, and well-being are cyclically linked. Education tends to pave the way to better jobs, higher wages, and higher socioeconomic status. Those tend to give people better access to healthy foods, green space, and other resources that foster health. Healthier children, in turn, are better able to focus at school.

But meaningful investment in public programs requires a healthy stream of revenue. Lawmakers can do this by raising revenues that ask people with higher incomes to contribute taxes at levels that are closer to what other households pay. 

Read the full Going Upstream report 

http://www.massbudget.org/report_window.php?loc=Going-Upstream.html

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.

MassBudget: How Does the 2020 Census Impact Federal Funding for Massachusetts?

More than $3 billion each year come to Massachusetts from the federal government directly based on census counts.These funds support education, health care, transportation, housing, and more in our communities. However, Massachusetts communities are at risk of an under count in the 2020 Census.

If we do not get a complete and accurate count of every single person living in the state, we are at risk of losing out on these critical resources. In our latest brief, Why the Count Counts: Federal Funding and the 2020 Census, we provide an in-depth look at several key federal funds vulnerable to a census under count. https://massbudget.org/report_window.php?loc=Why-the-Count-Counts-2020.html

Key findings from the brief include:

• Young children are particularly vulnerable to being missed in the census. As many as 20,000 young children were missed in Massachusetts in the 2010 Census;
• Funding for Head Start, WIC, special education, Title I dollars for our local schools, are all directly affected by census population counts;
• If the Census 2020 counts are wrong, Massachusetts risks losing out on this funding for a full decade - essentially an entire childhood; and
• Low-income communities, immigrant communities, and communities of color have historically been under counted in the census.

To read the full Why the Count Counts brief, visit our website here. https://massbudget.org/report_window.php?loc=Why-the-Count-Counts-2020.html

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.

MassBudget: How Does the 2020 Census Impact Federal Funding for Massachusetts?

MassBudget: Governor's FY 2021 budget $74M short for low-income students; one-time revenue gains largely offset by planned phase-outs; and assumptions that MassHealth will remain stable

New MassBudget analysis finds delay or underinvestment for some essential benefits and programs

Governor's FY 2021 budget for K-12 funding falls short by $74 million for low-income kids

While the Governor's Fiscal Year (FY) 2021 budget proposes funding levels that mostly keep pace with the state's seven-year plan to overhaul funding for K-12 schools, it falls short in keeping one key area on track: support for students in low-income families.

In this critical area of the new school funding law - the Student Opportunity Act (SOA) - the Governor's FY 2021 budget only delivers on four percent of the necessary increase, leaving low-income students $74 million short. Under this budget proposal, state lawmakers would have to make up the remaining 96 percent of what's needed for low-income students over the next six years, according to a new MassBudget report, Opportunity Delayed: FY 2021 Governor's budget for K-12 funding falls short by $74M for low-income kids. http://massbudget.org/report_window.php?loc=FY2021%20Governor%27s%20Budget%20SOA%20Highlights.html

"The goal of the Student Opportunity Act is to update our state funding for public schools so every child can get an excellent education, regardless of their background. Slower progress on any part of this new law means state lawmakers will have to play catch-up later," said Colin Jones, senior policy analyst and author of the report. "Meanwhile, schools would not be able to consistently phase in enhancements to their programs on schedule."

Other MassBudget briefs analyzing the Governor's FY 2021 budget found that:

In revenue, the Governor's budget proposes one-time revenues that will largely be offset by scheduled losses.

The Governor balances his budget by adding about $498 million in mostly one-time tax and non-tax revenues. These one-time sources will not be available to help fund the budget in future years.

Meanwhile, $420 million in recurring revenue will be disappearing from the state's revenue stream because of recent and pending changes in law. The Governor's FY 2021 budget already accounts for these losses, but the losses will leave the state with that much less each year to invest in communities.

Details on the revenue picture in the budget can be found in FY 2021 GOVERNOR'S BUDGET: Revenue - Governor proposes one-time revenues, which will largely be offset by scheduled loss of recurring revenues.  http://massbudget.org/report_window.php?loc=FY2021%20Governor%27s%20Budget%20Revenue%20Highlights.html

On MassHealth, the Governor proposes to hold steady.

The Governor's FY 2021 budget proposal does not include major health reform initiatives and assumes the MassHealth caseload will remain stable during the fiscal year. The proposal includes about $17.94 billion for a range of MassHealth programs and related spending. More than half of the MassHealth program spending is reimbursed by the federal government.

The Governor has proposed separate legislation to re-align overall health care spending to emphasize behavioral health and primary care.

For details on MassHealth funding in the budget, see FY 2021 GOVERNOR'S BUDGET: MassHealth and Health Reform - Governor proposes to hold steady.  https://massbudget.org/report_window.php?loc=FY2021%20Governor%27s%20Budget%20MassHealth%20Highlights.html

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.

http://massbudget.org/report_window.php?loc=FY2021%20Governor%27s%20Budget%20SOA%20Highlights.html

MassBudget: Governor's FY 2021 budget $74M short for low-income students

MassBudget: Taxing The GILTI

In our latest tax series report, Taxing the GILTI, the Massachusetts Budget and Policy Center (MassBudget) highlights the impacts of corporate tax avoidance, and solutions to help bring this needed revenue back to the Bay State.

"Aggressive tax avoidance is a tactic often employed by large, multinational corporations and it's hurting our communities," said Marie-Frances Rivera, president of MassBudget. "At a time when there are calls for increased revenue to fund education and fix our broken transportation system, we can't afford to forfeit these dollars. Future generations are depending on us to do what's right."

Recognizing the scope and scale of this problem, federal lawmakers established a process for identifying some of this shifted income and then taxing a portion of it. The Global Intangible Low-Taxed Income (GILTI) provision allows the federal government and the states to recoup some of the tax dollars lost to aggressive corporate income shifting. "Currently, Massachusetts is not making full use of this powerful tool," said Kurt Wise, senior policy analyst and author of the report. 

"Recoupling to the GILTI provision would level the playing field for corporate taxpayers and would allow the Commonwealth to collect millions in tax dollars now lost to sophisticated accounting tricks."

Key findings in this report include:

• The federal government has created a tax provision, GILTI, to combat this abusive tax planning;
• Massachusetts lawmakers decoupled from this federal provision in 2018. Instead of taxing 50 percent of GILTI, as the federal provision does, Massachusetts now taxes only five percent;
• If lawmakers now choose to recouple to the federal provision, the Commonwealth stands to gain up to $450 million in additional revenue each year;
• Fourteen states - including ME, VT, NH and RI - have adopted the federal GILTI provision, taxing 50 percent of GILTI; and,
• States are on solid constitutional footing when taxing the GILTI, backed by multiple rulings of the U.S. Supreme Court dating back to the 19th Century.

To learn more about how the Commonwealth can combat abusive income shifting by large, multinational corporations, read the full Taxing the GILTI report here Bit.ly/TaxGILTI

For the full infographic
http://massbudget.org/reports/pdf/GILTI%20Infographic.pdf

For other resources, like our Gas Tax: What Is It and Who Pays fact sheet and more, visit our tax homepage here  http://massbudget.org

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.

What is GILTI?

"The Global Intangible Low-Taxed Income (GILTI) provision was created to combat corporate tax avoidance. Many large, profitable U.S. multinational corporations go to great lengths to reduce their taxes."

MassBudget: Taxing The GILTI

MassBudget: Obstacles on the Road to Opportunity

Read our latest report

Obstacles on the Road to Opportunity: Finding a Way Forward for the Children and Families of Massachusetts While effective public policy removes obstacles along the road to opportunity, good jobs play a central role in paving that road. Economic policies, since the 1970s, have allowed wages to stagnate for most workers. Important work support programs, and other essential benefits that allow children and families to thrive, are also at risk. In the updated Obstacles on the Road to Opportunity report, we highlight data that documents how opportunity is not equitable across the Commonwealth.   http://massbudget.org/reports/pdf/Obstacles%20on%20the%20Road%20to%20Opportunity%201.2.2020.pdf This report includes data about Massachusetts and local communities, such as: In Springfield, nearly 71 percent of children are from families making less than $52,000 a year; Statewide, 23 percent of renters pay half of their incomes or more on rent each month; About 90,000 children live in high-poverty neighborhoods, in which 30% or more of the residents have incomes below $25,750; Approximately 1.1 million people benefited from the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), including about 580,000 children; and, Incomes for most have been flat. However, even when adjusted for inflation, incomes for the top 1 percent have more than quadrupled, from about $430,000 between 1978-1980 to over $1.8 million in 2013-2015. MassBudget thanks the Mass. Association for Community Action (MASSCAP  https://www.masscap.org/) for their support of this research on poverty, and their work in calling on national, state and local stakeholders to act to eliminate opportunity gaps for families and children across the country.  Interested in learning more of the key takeaways and data about your community? Read the data-packed full Obstacles on the Road to Opportunity report here http://massbudget.org/reports/pdf/Obstacles%20on%20the%20Road%20to%20Opportunity%201.2.2020.pdf 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 1 STATE STREET, SUITE 1250 BOSTON, MA 02109

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MassBudget: Four stories to watch in the FY 2021 budget debate

A summary of our series

Four stories to watch in the FY 2021 budget debate The process to create the Fiscal Year (FY) 2021 budget begins this week with the release of the Governor's proposal. Some key items to look for in the FY 2021 budget cycle are whether the Commonwealth will have the revenue to fund important priorities such as the new law to overhaul K-12 funding, updates to our ailing transportation system and many other pressing needs. These issues were discussed in a series of recently released reports by the Massachusetts Budget and Policy Center (MassBudget). A summary of the series is in FY 2021 BUDGET PREVIEW: Four items to watch in the budget debate. "We have ambitious plans to revamp the way we fund our public schools and to modernize our transportation system. Now, it's time we fund these plans." said Marie-Frances Rivera, president of MassBudget. "These bold plans coincide with a year that is likely to see slower revenue growth. Unless we raise substantial new revenue, it will be difficult to accomplish these goals without shortchanging other important services." In the FY 2021 budget preview series, MassBudget examined: How lawmakers might deliver on a historic bill to overhaul the state's K-12 school funding formula. The bill gives lawmakers seven years to implement the formula. To both keep pace with inflation and phase in the new funding, lawmakers would need to provide about $303 million per year in additional school funding aid from FY 2020 to FY 2027. Whether lawmakers will fund needed upgrades to the transportation system or maintain the status quo. Mounting issues - from worst-in-the-nation traffic congestion to subway system failures - have turned up the pressure on lawmakers to address the state's aging transportation infrastructure. The budget is one way for lawmakers to signal their willingness to invest and innovate. Whether lawmakers will provide support to working families and those who need it most through the state's tax code. The Baker Administration last year proposed doing this through an increase of the state dependent deduction. But, for about the same cost, the state could provide better support for those who need it most through an expanded state Earned Income Tax Credit (EITC). Whether the state will have enough revenues to fund the above priorities and others. The estimated revenue growth for FY 2021 is significantly slower than it has been in recent years. Further, changes to the tax code will take about a $650 million bite out of revenue in FY 2021 and even more in future years. The full series is posted on the Budget Resources landing page. Analyses of each budget proposal also will be posted on that page shortly after the proposal is released. MassBudget also will be monitoring any policies or budget items that will help ensure the state's tax system lessens (or does not exacerbate) income inequality. To track the funding and proposed funding for specific line items, see MassBudget's interactive Budget Browser. This tool will be updated shortly after each proposal is released. 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 1 STATE STREET, SUITE 1250 BOSTON, MA 02109

Massachusetts Budget and Policy Center, 1 State Street, Suite 1250, Boston, MA 02109 Sent by rwilliams@massbudget.org in collaboration with Try email marketing for free today!