After the Tech Tax Repeal: Remembering the Big Picture
MassBudget
Participation.
Massachusetts Budget and Policy
Center
Democracy.
After the Tech Tax: Remembering The Big
Picture
In order to strengthen our economy and improve
the quality of life in Massachusetts, the FY 2014 budget included new
investments to fix and improve our transportation system and to make higher
education more affordable.
One of the things that made such investments
possible was $160 million in new revenue from a "tech tax" that covers computer
design services and the modification of pre-written software. It now looks as if
the "tech tax" is going to be repealed, without being replaced now by a new
ongoing revenue source. In the longer term we are likely to see an ongoing
debate in our Commonwealth about how best to pay for important investments in
transportation, education, and other systems that play a critical role in
helping people reach their full potential and enhancing the future prospects for
our economy.
Reforming or eliminating special business tax
breaks
Reducing opportunities for tax
avoidance
Reexamining
other major tax cuts of the past two decades, including changes to the
income tax that cost the state nearly $3 billion per year.
Rather
than an exhaustive list, "After the Tech Tax Repeal: Remembering the
Big Picture" summarizes some of the revenue options we could consider as we
think about the best, fairest way to improve our schools, roads, bridges, and
public transit systems.
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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