Revenue Options and Tax
Fairness
To fund new investments in
education and transportation--and prevent cuts to other vital areas--the
Governor has proposed a tax plan that would 1) raise significant new revenue and
2) increase the fairness of our tax system. These two features of the Governor's
plan are the subject of two new MassBudget factsheets.
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The first, "Possible Reforms to the Governor's Tax Plan,"
analyzes four options that would raise roughly the same amount of revenue as the
Governor's proposal without eliminating personal income tax deductions. The
Governor's plan eliminates a number of these personal income tax
deductions--many of which are popular and serve legitimate policy goals.
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Currently, the tax system in
Massachusetts is regressive, meaning that low and middle-income people pay a
larger share of their income in state and local taxes than high-income people.
"Examining Tax Fairness," our second new
factsheet, describes the various causes of this imbalance.
In addition to these new
factsheets, MassBudget has also updated "Effects of Raising Rates and Exemptions on the State
Income Tax," an analysis of a proposed tax reform plan would would raise the
state's income tax to 5.95%, increase the personal deduction, and set a single
tax rate of 8.95% for all investment income.
| 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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