MassBudget: Special Business Tax Break Spending Continues to Rise

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. Special Business Tax Break Spending Continues to Rise The cost of special business tax breaks continues to grow. Today we're releasing an update to last year's report, "The Growing Cost of Special Business Tax Break Spending." Based on new and updated estimates from the administration, the paper shows that the Commonwealth's annual spending on business tax breaks aimed at supporting economic development in Massachusetts continues to rise. These costs are expected to exceed $1 billion for the first time this 2017 fiscal year, and the Department of Revenue projects them to growth further in Fiscal Year 2018. Although often not subject to the regular and close scrutiny given to on-budget programs, spending on these tax breaks is no different in its bottom-line effect than direct spending through the state budget; each limits the resources available for other state priorities. Adjusting for inflation, these costs have increased from $370 million in Fiscal Year 1996 to $1.028 billion projected in Fiscal Year 2018. Last week the Pew Charitable Trusts released a national report ranking the fifty states on how well they evaluate their spending on economic development tax incentives. Massachusetts was ranked in the lowest tier, along with 22 other "trailing" states. The report noted that, "Massachusetts is trailing other states because it has not adopted a plan for regular evaluation of tax incentives." You can read MassBudget's updated analysis of special business tax break spending here (LINK). 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 nberger@massbudget.org in collaboration with Try it free today

FYI - The IRS May Start Calling You about Debt, the key word is 'debt'

Catching up to share this item from MA Consumer Affairs which was posted in April:

"For years, we (along with other consumer protection and law enforcement groups) have told consumers that the IRS will never randomly call you and tell you that you owe money. In fact, there are established guidelines the IRS follows for collection of unpaid taxes and a phone call will never be the first time you’re hearing from them. 

However, a recent change to how the IRS collects unpaid taxes involves these very types of calls and it’s important that consumers be up-to-date on the topic in order to know the difference between a legitimate IRS call and the common IRS scam call."

• If you do not have any federal tax debt you will not be a part of this program or receive a call from the IRS. Additionally, this program targets those who have tax debt going back several years and have heard from the IRS multiple times. If you are uncertain whether you owe taxes, you can look-up your account by using irs.gov/balancedue

Continue reading the update from MA Consumer Affairs
http://blog.mass.gov/consumer/massconsumer/the-irs-may-start-calling-you-about-debt/

The IRS May Start Calling You about Debt

MassBudget: Budget Explainer: Transportation

Transportation funding in one chart, plus two fact sheets comparing MA taxes to other states

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. Budget Explainer: Transportation  Better transportation infrastructure makes the economy more productive, connects people to jobs, and reduces the amount of time people waste in traffic. Where do the resources come from to operate our transportation system, and where is the money invested? The flow chart below displays state revenues and spending, with the width of the arrows representing the dollar amounts. Read the fact sheet with a larger chart. MassBudget has also recently updated two fact sheets that compare Massachusetts taxes to other states:  Massachusetts Ranks near Middle for Taxes in FY 2014 compares state and local taxes in the Commonwealth to other states, and finds we're in the middle of the pack. Where Does the Taxachusetts Label Come From? describes how the state's old label as a high-tax state has more to do with history than reality. 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

Sent by nberger@massbudget.org in collaboration with Try it free today

MassBudget: Cost of special business tax breaks nearly tripled since 1996

MassBudget report examines growth of special business tax breaks

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. The cost of special business tax breaks has nearly tripled since 1996  A new study by the Massachusetts Budget and Policy Center (MassBudget) shows that the cost to the state from special business tax break spending has nearly tripled, even after adjusting for inflation, from $370 million in 1996 to over $1 billion anticipated in this fiscal year. The Commonwealth forgoes a large amount of potential revenue each year through spending on business tax breaks aimed at supporting economic development in Massachusetts. Although less often a focus of budget debates, spending on these tax breaks is no different in its bottom-line effect than direct spending through the state budget: law makers must offset each dollar from these special breaks with reductions to other public programs or increases to other forms of taxes. The MassBudget report finds that the cost of special business tax breaks began to climb rapidly starting 20 years ago with incentives for the mutual fund industry, manufacturers, and others including the film industry and life sciences companies. And yet, despite the findings of a 2012 report from a state special commission that called for studying their effectiveness, most state business tax breaks have not faced a thorough examination. Back in 2011, the Massachusetts Legislature established a Tax Expenditure Commission to "study carefully for the first time the various exemptions, deductions and credits in the Massachusetts tax code, and to recommend methods for measuring and reviewing their effectiveness." The Commission recommended an overall reduction in the number and cost of these special tax breaks. It also recommended: identifying the clear purpose of each special business tax break; creating clear metrics to gauge their impact; conducting a regular rolling review of whether to let these programs expire; and spelling out clear rules about when the Commonwealth would "clawback" forgone revenues from businesses that fail to deliver the jobs or other kinds of economic development for which the given tax break was originally awarded. Most of these recommendations have yet to be implemented. MassBudget's new report tracks and explains the growth of special business tax break spending, and how it has resulted primarily from three major, industry-specific tax breaks including  for manufacturing companies, mutual fund companies, and tax breaks for movie production companies. The report examines these and a number of other recent tax breaks for businesses in Massachusetts. Read the new report here (LINK). 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 nberger@massbudget.org in collaboration with Try it free today

MassBudget: How MA Tax Levels Compare to Other States & Update on Reform Proposal

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. How MA Tax Levels Compare to Other States & Update on Reform Proposal The U.S. Census recently released updated data on state and local taxes across the country. Taxes are how we pay for most of what we do together through government: educate our children; protect our air and water; maintain our roads and public transit systems; keep our communities safe; help those facing difficult challenges; and provide everyone access to things that improve the quality of life in our communities like parks, libraries, and playgrounds. Our new factsheet Massachusetts Ranks in Middle for Taxes in 2013 compares the overall level of state and local taxes in Massachusetts to the levels in other states. A companion factsheet Where the Taxachusetts Label Come From? explains the history of that label and describes how it is at odds with the reality of the level of taxation in Massachusetts today. We have also updated our recent factsheet Funding Improvements for Schools, Roads, and Public Transit with Tax Reforms that Improve Fairness on a proposal to increase investments in education and transportation through a tax on incomes over $1 million. The update adds new revenue estimates produced by the Massachusetts Department of Revenue. To read the full factsheets, please click on their titles below: Massachusetts Ranks in Middle for Taxes in 2013 Where Does the Taxachusetts Label Come From? Funding Improvements for Schools, Roads, and Public Transit with Tax Reforms that Improve Fairness 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

MA Reduced taxes more than all but 2 states Massachusetts Budget and Policy Center | 15 Court Square | Suite 700 | Boston | MA | 02108

"Get a head start by organizing your financial documents"

From the MA.GOV blog, they share some of the links to the common MA personal income tax forms. Yes, now that we are in 2015, April 15 (tax deadline) is approaching daily. While the Super Bowl comes first, and spring training is around the corner, we are in 'tax season.'

Tax season is upon us, and that can mean stress for Massachusetts residents and workers who don’t have the documents they need to file returns and payments by the April 15, 2015 deadline. 

While the Department of Revenue (DOR) encourages online filing of Massachusetts state income taxes withWebFile for Income, you can make filing a paper return as easy as possible by having the right forms and information at your fingertips.  

WebFile for Income is only available to full-year residents. Part-year residents and non-residents can file electronically using commercial software or a professional tax preparer.

Continue to the MA.GOV site to find the link to the common forms  http://blog.mass.gov/blog/government/get-ready-for-tax-season/

MassBudget: New study--Who pays lowest taxes in MA?

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. Highest income residents pay lowest  share of income in state and local taxes A new study released today by the Institute on Taxation and Economic Policy (ITEP) finds that the highest income taxpayers in Massachusetts, and across the country, pay a smaller share of their income in state and local taxes than do low and middle income taxpayers. Read the study HERE.  The study, Who Pays?, analyzes tax systems in all 50 states and factors in all major state and local taxes, including personal and corporate income taxes, property taxes, sales and other excise taxes. Taxes, of course, are how we pay for our schools, our roads, our parks and playgrounds, public safety, our safety net, and everything else we do together through our government to make life better for all of our families and all of our communities. To provide more detail on the situation in Massachusetts, MassBudget is also publishing today updates of two factsheets: Examining Tax Fairness and Where Does the Taxachusetts Label Come From? In examining the Massachusetts tax system we see that the highest income 1% of taxpayers pay $83,000 a year less than they would if they paid the same percentage as most other taxpayers. This costs the state $2.1 billion a year. 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

To save some clicks, I went to the report and saved a copy of the MA page here

screen grab of MassBudget webpage