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.
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.
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