Showing posts with label Tax revenue. Show all posts
Showing posts with label Tax revenue. Show all posts

Tuesday, May 7, 2019

“I do think it’s important that we’re involving the public as much as possible”

From the Milford Daily News, articles of interest for Franklin:
"The Senate working group formed to take a deep dive into tax policy and recommend ways to modernize and update the tax code will hold closed meetings, according to its chairman. 
Sen. Adam Hinds of Pittsfield, who also co-chairs the Joint Committee on Revenue, told the News Service that the working group will hold six regional hearings to take public testimony but will keep its monthly business meetings closed in an effort to facilitate “honest conversation” among group members. 
“It’s my inclination to do it this way,” said Hinds, who has described the group’s charge as modernizing and simplifying the state tax code by recommending legislative changes for consideration in the 2021-2022 legislative session. 
The group’s first meeting is set for 2 p.m. on May 15 in the Senate Reading Room. Its members include a former lieutenant governor and revenue commissioner, representatives of big businesses and labor unions, and several appointees who favor changes to boost revenue and make taxes fairer for low-income workers."

Continue reading the article online (subscription may be required)
https://www.milforddailynews.com/news/20190506/state-senate-to-lead-closed-meetings-on-tax-policy-changes-to-facilitate-honest-conversation

From the archives, the original announcement of the Senate Revenue Working Group  https://www.franklinmatters.org/2019/04/senate-president-spilka-chair-hinds.html


Senate President Karen Spilka announces the members of the Senate Revenue Working Group, chaired by Senator Adam Hinds
Senate President Karen Spilka announces the members of the
Senate Revenue Working Group, chaired by Senator Adam Hinds

Saturday, April 27, 2019

In the News: Robert “Sully” Sullivan; Milford Regional expands; all transportation revenue options are still “on the table”

From the Milford Daily News, articles of interest for Franklin:

Robert “Sully” Sullivan
"For Jack Lank, president of the United Regional Chamber of Commerce in Plainville, the visual of Robert “Sully” Sullivan, in a red Santa suit and hat patrolling through Franklin in his red convertible, is a lasting memory. Sullivan used to joke that he also had the physique for it, said Lank. 
Sullivan, Franklin’s beloved Santa Claus and co-founder of the Santa Foundation, died Monday at Whittier Hospital in Westborough. He was 70. 
“It’s a tremendous loss to the community, and a tremendous loss for all the families that he has helped over the years,” said Lank, who worked with Sullivan on his Santa Foundation for 10 years, calling him a “town icon.” 
“He was one of the kindest individuals you would ever meet, and he never said no,” said Lank.

Continue reading the article online (subscription may be required)
https://www.milforddailynews.com/news/20190426/franklin-town-icon-dies-at-70

Santa Foundation
Santa Foundation


Milford Regional expands in Franklin
"Things have gotten a little easier for Franklin-area residents who use services and physicians at Milford Regional Medical Center. 
The Milford-based hospital opened a new building at 1280 West Central St. in Franklin earlier this month. 
“Franklin is a huge, important part of our service area,” said Teri McDonald, vice president of public relations, marketing and communications at Milford Regional Medical Center. ”(The new building is) going to be a great improvement for the area.” 
The location consolidates four medical practices previously scattered throughout Franklin, expands the hospital’s diagnostic imaging and laboratory services, and adds an urgent care center."

Continue reading the article online (subscription may be required)
https://www.milforddailynews.com/news/20190426/franklin-gets-centralized-milford-regional-medical-center-service


all transportation revenue options are still “on the table”
"Expanding road tolls across Massachusetts and to the state’s borders could be a way to generate new revenue to address growing transportation woes, Senate President Karen Spilka said Thursday. 
In remarks at a Greater Boston Chamber of Commerce breakfast Thursday, Spilka, an Ashland Democrat, told business leaders that tolls similar to those along Interstate 90 deserve consideration for other places. 
“Simply put, and I put this out there, if tolls are a good idea for my district, my region, I believe we should explore the possibility of expanded tolling, including possibly at our borders,” Spilka said. “Our best ideas won’t matter if we can’t find a way to make a 21st century transportation infrastructure a reality — and find a way to pay for it.”

Continue reading the article online (subscription may be required)
https://www.milforddailynews.com/news/20190425/spilka-more-tolled-roads-deserve-consideration

Friday, April 26, 2019

Senate President Spilka, Chair Hinds Announce Members Of Revenue Working Group & Convene First Meeting

On Tuesday, the Massachusetts Senate announced the members of its Revenue Working Group during a press conference in the newly renovated Reading Room, adjacent to the historic Senate Chamber in the State House. Immediately after the press event the Revenue Working Group convened its first meeting.

Chaired by State Senator Adam G. Hinds (D- Pittsfield), who serves as the Senate chair of the Joint Committee on Revenue, the establishment of the Senate Revenue Working Group fulfills a vision first outlined by Senate President Karen E. Spilka (D- Ashland) during her inaugural address to Senate members on January 2, 2019.

“I am excited to be working with Senator Adam Hinds and the many distinguished members of the Revenue Working Group to take a close and comprehensive look at how our tax code is structured in Massachusetts,” said Senate President Spilka. “With all of the changes to how we live and work these days, it is important to see what is working, what is outdated, where we can improve, and how we can create a revenue system for the Commonwealth that is fair and functional for all of us. I am confident that we will find a way to continue to provide for the economic vibrancy of Massachusetts while allowing us to care for each other and fund our priorities.”

The Revenue Working Group is charged with assessing the existing Massachusetts revenue system and exploring ways to update and improve it, with the primary goal of ensuring the Commonwealth’s system of revenue collection generates sufficient funds in a predictable, sustainable and fair manner while contributing to a vibrant and competitive economy and ensuring taxpayer accountability.

As outlined by the Senate President, the Revenue Working Group is a part of the existing robust dialogue on the state’s current revenue system and tax policy on Beacon Hill, and will operate as a parallel effort with the Joint Committee on Revenue. Information gathered by the Working Group will help inform decisions made by Senator Hinds in his capacity as co-chair of the Committee during this legislative session, and will be available to Revenue Committee members and staff.

The Working Group will meet throughout the 2019-2020 legislative session, convene public forums in various locations across the state and recommend policy changes for future consideration by the Massachusetts Legislature. Legislative recommendations are not expected to be filed for consideration until 2021. The ongoing efforts of the Working Group throughout 2019-2020 is not expected to hinder legislative and policy decisions that may come before the House of Representatives and Senate during this legislative session.

“The members announced today are a deliberately inclusive, bipartisan and talented group representing business leaders and workers, non-governmental leaders and grassroots advocates, professors and tax attorneys,” said Senator Hinds. “Each brings a unique perspective and a lot of experience to the Working Group that I believe will ensure any recommendations that result from our efforts will be capable of gaining wide acceptance. My hope is that at the conclusion of our review of the tax code, the Working Group will make recommendations that are positive for working families and small businesses, and support economic growth and vital government investments in Massachusetts.”

The 21 members of the Senate Revenue Working Group announced were:

  • Senator Adam G. Hinds, Chair, Senate Revenue Working Group
  • Senator William Brownsberger (D- Belmont), Senate Vice Chair of the Committee on Revenue
  • Frank Callahan, President, Massachusetts Building Trades Council AFL-CIO
  • JD Chesloff, Executive Director, Mass Business Roundtable
  • Nancy Creed, President, Springfield Regional Chamber
  • Peter Enrich, Professor of Law, Northeastern University School of Law
  • Deb Fastino, Executive Director, Coalition for Social Justice
  • Senator Ryan Fattman (R- Sutton), Member, Joint Committee on Revenue
  • Christina Fisher, Executive Director for Massachusetts and the Northeast, TechNet
  • Hilary Bacon Gabrieli, Tax Policy Attorney
  • Harris Gruman, Executive Director of the SEIU Massachusetts State Council
  • Beth Huang, Director, Massachusetts Voter Table
  • Eileen McAnneny, President, Massachusetts Taxpayers Foundation
  • Tim Murray, President & CEO, Worcester Regional Chamber of Commerce
  • Amy Pitter, President & CEO, Massachusetts Society of CPAs
  • John Regan, Executive Vice President of Government Affairs, Associated Industries of Massachusetts
  • Mayor Dan Rivera, City of Lawrence
  • Marie-Frances Rivera, President, Massachusetts Budget & Policy Center
  • James E. Rooney, President & CEO, Greater Boston Chamber of Commerce
  • David E. Sullivan, Attorney
  • Steven A. Tolman, President, Massachusetts AFL-CIO


It is the tradition of the Massachusetts Senate to, at times, establish working groups, independent of the Joint Committee process, to conduct robust assessments of key policy areas. This session, at the direction of President Spilka, the Senate is also convening working groups on Transportation and Mental Health.

Senate President Karen Spilka announces the members of the Senate Revenue Working Group, chaired by Senator Adam Hinds
Senate President Karen Spilka announces the members of the
Senate Revenue Working Group, chaired by Senator Adam Hinds

Tuesday, April 16, 2019

MassBudget: For Tax Day: A Round-Up of Recent Tax-Related Reports



MassBudget  Information.
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 Massachusetts Budget and Policy Center  Democracy.
April 15, 2019



For Tax Day: A Round-Up of Recent Tax-Related Reports

Our Commonwealth's current prosperity depends, in no small part, on the investments that earlier generations made before us. Think of where we'd be if earlier generations hadn't invested in our subway system or the Massachusetts Turnpike - or if the Commonwealth hadn't committed to establishing the nation's first public school. Our state and our lives would look quite different today without those forward-thinking investments.

Some of the most important things we do together through state and local government is educate our children, increase the mobility of our people through public transit and safe roads and bridges, and improve people's well-being through access to healthy foods, medical care, and other necessities. And, improving the quality of the education our children receive and the transportation infrastructure our communities rely on requires up-front investments for long-term pay-offs.

Tax revenue helps fund these important priorities. For this year's income tax filing deadline, the Massachusetts Budget and Policy Center (MassBudget) is revisiting some of its recent papers related to the state's tax system. Here are some of the highlights: 

Who pays state and local taxes in Massachusetts? 

Who pays state and local taxes in Massachusetts?

Massachusetts' tax system is upside-down, meaning it asks low- and middle- income taxpayers to contribute a larger percentage of their incomes in taxes than high-income taxpayers.
http://massbudget.org/report_window.php?loc=Who-Pays-Low-and-Middle-Earners-in-Massachusetts-Pay-Larger-Share-of-their-Incomes-in-Taxes.html



How do decades-old tax cuts affect our state today?

How do decades-old tax cuts affect our state today?

The upside-down nature of our taxes were exacerbated by tax cuts from the late 1990s and early 2000s. These tax cuts, which today mean more than $4 billion in lost revenue per year, mostly helped the highest-income taxpayers.
http://massbudget.org/report_window.php?loc=Income-Tax-Cuts-Cost-Massachusetts-Over-$4-Billion-Annually.html



What are ways to help turn our tax system right-side up?

What are ways to help turn our tax system right-side up?

But there are ways to turn our upside-down tax system right-side up. MassBudget explored 14 options that would not require changes to the State Constitution.
http://massbudget.org/report_window.php?loc=14-Options-for-Raising-Progressive-Revenue.html
For more information on the state's tax system and other policies that affect the lives of low- and middle-income people in Massachusetts, visit massbudget.org. Or follow us on Twitter or Facebook.

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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Thursday, March 28, 2019

MassBudget: Decades-Old Tax Cuts Now Exceed $4B in Lost Revenue



MassBudget  Information.
  Participation.
 Massachusetts Budget and Policy Center  Democracy.
March 27, 2019



Decades-Old Tax Cuts Now Exceed $4B in Lost Revenue
Benefits mostly got to highest-income households

Decades-old income tax cuts have been depriving the Commonwealth of revenue for years - revenue for education, transportation, and programs to help families make ends meet. The loss now exceeds $4 billion per year.
The households that have benefited most from these tax cuts (implemented over the late 1990s and early 2000s) are those with the most income, according to a new Massachusetts Budget and Policy Center (MassBudget) report.
"These past tax cuts have had a lasting effect on our Commonwealth. We are seeing the effects now: in our inadequate education funding formula, in our aging transportation infrastructure, and in long waitlists for housing vouchers and early education," said Kurt Wise, Senior Policy Analyst and author of the paper.
MassBudget: Decades-Old Tax Cuts Now Exceed $4B in Lost Revenue
Over two-thirds of these past income tax cuts go to the top 20 percent of Massachusetts households, by income. Meanwhile, the lowest 40 percent of households receive only 7 percent of the tax benefits.
"Reviewing and reversing these rate cuts is just one example of the many opportunities to raise new revenue in ways that also can help turn our upside-down tax system right-side up," said Marie-Frances Rivera, President of MassBudget.
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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Massachusetts Budget and Policy Center, 15 Court Square, Suite 700, Boston, MA 02108

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Tuesday, February 12, 2019

MassBudget: Why Top-Income Households Receive Most Tax Benefits from Charitable Deduction



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 Massachusetts Budget and Policy Center  Democracy.
February 11, 2019



Why Top-Income Households Receive Most Tax Benefits from Charitable Deduction

BOSTON - Our Commonwealth does best when all people experience rising prosperity. But for several decades, the wealth and income of the top 1 percent of households has grown briskly while others have been left behind. While there are many reasons for this trend, one contributing factor is the way the federal tax deduction for charitable giving disproportionately rewards the giving of those with incomes over $1 million compared with donations made by moderate- and low-income tax filers.
While higher-income households have more money to give away - and therefore give larger dollar amounts to charity than households with less income - the benefits of charitable tax deductions remain heavily skewed towards top-income households, according to a new Massachusetts Budget and Policy Center (MassBudget) report. The top incomes average 160 times more than those earning incomes below $50,000, but their average charitable deduction is about 1,320 times larger.
"In Massachusetts, taxpayers who have incomes over $1 million claim almost half of all charitable deductions, though they make up less than 0.5 percent of tax filers. Meanwhile, tax filers with incomes of $200,000 or less claim only 29 percent of charitable tax deductions," said Phineas Baxandall, Senior Policy Analyst at MassBudget and author of the report.
Why Top-Income Households Receive Most Tax Benefits from Charitable Deduction
Research shows high-income households do not necessarily give a larger portion of their incomes to charity than lower-income households. Some studies find that, in fact, low- and middle-income givers actually contribute a larger percentage of their incomes. A key reason the tax benefits for charitable giving are skewed toward high-income households is: charitable giving can only be deducted from federal taxes if they are itemized (listed in detail). 

Most low- and moderate-income taxpayers don't tend to itemize their deductions, instead they usually opt for the larger (and simpler) standard deduction. For most top-income households, the standard deduction is too small compared to the deductions they can claim, so the vast majority choose to itemize deductions and avoid taxation on a larger portion of their incomes.
Massachusetts does not currently have a charitable deduction for state income taxes but, if the state's income tax rate drops to 5.0 percent in January 2020 - as anticipated by the Department of Revenue and following policy triggers enacted in 2002 - then a state charitable deduction would kick in the following year. 

Adding a state charitable deduction would reduce revenues by about $300 million per year, leaving less money for education, public health, transportation, affordable housing, and other programs funded by the state budget.
"In Massachusetts' upside-down tax system, people with lower incomes pay a larger percentage of their incomes in taxes than top-income households. Adding a state charitable deduction on top of the federal one would make this system even more imbalanced," said Marie-Frances Rivera, Interim President of MassBudget.
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


Massachusetts Budget and Policy Center, 15 Court Square, Suite 700, Boston, MA 02108

Sent by mrivera@massbudget.org in collaboration with
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Thursday, February 7, 2019

MassBudget: Analyzing the Governor's FY 2020 budget proposal



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 Massachusetts Budget and Policy Center  Democracy.
February 5, 2019

Analyzing the Governor's FY 2020 budget proposal
Proposal includes some new revenues, accompanied by modest plan to update education funding

The Governor's Fiscal Year (FY) 2020 budget proposal provides modest increases in funding for public education, human services, and several other important investments. This new funding does not, in many cases, reverse deep cuts imposed across the state budget after the tax cuts of the late 1990s and early 2000s - despite a decade of expansion in the economy. Lost revenue from tax cuts has limited the Commonwealth's ability to adequately fund education, infrastructure, and other building blocks of healthy communities and a strong economy.

While the Governor's proposal would increase year over year funding for several programs, it provides the same or less funding for programs such as Public Health, Local Aid, Juvenile Justice, Transitional Assistance, and others, according to an analysis by the Massachusetts Budget and Policy Center (MassBudget). The Governor's proposal recommends 16 percent less funding for Early Education and Care compared to FY 2001 (adjusting for inflation). Funding for Local Aid is similarly down 38 percent and Environment and Recreation programs remain 29 percent below 2001 levels. Making the necessary investments in our schools, transportation, housing, and other essential programs will require bold, new revenue sources.

Tax revenue growth was unusually strong in FY 2018 and may continue to be strong for most of FY 2019. The Department of Revenue expects that, without policy changes to increase revenue, overall revenue growth will slow markedly in FY 2020 - putting a strain on our capacity to support public programs and invest in infrastructure. While the Governor's FY 2020 budget proposal includes a variety of new and expanded taxes and other revenues, a number of previously-scheduled tax cuts and other revenue-losing policy changes will take a significant bite out of revenue totals in FY 2020 and beyond.

Much of the additional revenue proposed by the Governor would come from a variety of consumption taxes, which typically are regressive (meaning people with lower incomes contribute a larger share of their household incomes toward these taxes than do people with higher incomes). Meanwhile, the tax revenue reductions mostly come from progressive revenue sources. Therefore, these proposals do not help turn Massachusetts' upside-down tax system right-side up.

The Governor's proposal is accompanied by a plan to overhaul Massachusetts' school funding formula that could help ensure that all schools, especially those in low-income districts, are adequately funded. The plan makes some progress, over a seven-year timeline, to implement the 2015 Foundation Budget Review Commission (FBRC) recommendations related to health insurance, special education, and greater support for low-income and English Language Learner students. However, without substantial, new revenues the Commonwealth can only adopt a moderate plan to implement the FBRC recommendations.

The budget proposal includes other notable initiatives. For instance, the Governor proposes creating a trust fund to prevent childhood lead exposure and increasing the "Real Estate Transfer Tax" to invest in climate change adaptation. Further, the Governor proposes new systems for negotiating the cost of drugs used under MassHealth and expands eligibility for low-income elders to qualify for the Medicare Savings Plan.


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


Massachusetts Budget and Policy Center, 15 Court Square, Suite 700, Boston, MA 02108

Sent by mrivera@massbudget.org in collaboration with
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screen grab of the MassBudget - Budget Browser
screen grab of the MassBudget - Budget Browser