Taxes

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A “Millionaire Tax” Would Advance Racial Justice in Massachusetts

Together, the people of Massachusetts can build a better Commonwealth, one that advances both economic and racial justice. We can transform our communities by addressing …

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Testimony to end tax subsidies for purchasing private jets and other aircraft

To the Joint Committee on Revenue December 14, 2021 RE: Testimony in support of An Act Relevant to the Repeal of the Sales Tax Exemption …

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Testimony to expand the Earned Income Tax Credits for low-income households

To the Joint Committee on Revenue December 13, 2021 RE: Testimony in support of An Act to increase family stabilization through the earned income tax …

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ALL TAXES REPORTS

Who Pays? Low and Middle Earners in Massachusetts Pay Larger Share of their Incomes in Taxes

Taxes are the main way communities pay for the things we do together. Taxes pay for essential programs and infrastructure we take for granted, like fire protection, public education, and health inspectors; roads, bridges, and public transit; and the support for people facing hard times. Examining how much people at different income levels pay in taxes is important when considering the fairness of tax policy.

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What Has Happened in Other States with High Tax Rates on Million-Dollar Incomes?

Massachusetts can have an economy that generates broad prosperity and home-grown millionaires with world-class education and infrastructure. Several other states have top income-tax rates as high, or substantially higher, than what is proposed in Massachusetts. Those states do not have fewer millionaires, and have not seen less growth in their share of millionaires over time.

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The Massachusetts State Earned Income Tax Credit

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What Does the Federal Tax Law Mean for Massachusetts and How Might the Commonwealth Respond?

The new federal tax law reduces federal revenues by approximately $1.5 trillion largely by cutting taxes for corporations, people receiving inheritance from very large estates, and high-income owners of pass-through entities such as partnerships. The law provides reduced tax rates and relatively smaller tax reductions to most wage and salary earners while disproportionately benefiting those with high incomes. This paper examines the distribution of tax cuts, the impact of how they may be paid for, how the law interacts with Massachusetts policies, and what the Commonwealth could do to take its own direction different from the federal government.

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The Evidence on Millionaire Migration and Taxes

This policy brief examines the evidence on the likely migration effects of raising income taxes on households with taxable annual income above $1 million and the impacts on net state revenue.

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Funding Improvements for Schools, Roads, and Public Transit with Tax Reforms that Improve Fairness

A ballot question has been proposed that would support investments in education and transportation with revenue from an additional 4% tax on income over a million dollars a year. This factsheet examines this proposal and how it relates to longer term economic and policy trends in Massachusetts.

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Sweeter than SALT: Highest-Income Households Get Federal Tax Cuts More Than Twice SALT Losses

The federal government has enacted very large tax cuts targeted mostly at higher-income taxpayers. The resulting loss of an almost $1.5 trillion in federal revenue is likely to lead to cuts in federal support for programs that are important to people in Massachusetts and to the state budget. Amid these deep tax cuts, a new federal limit on the deductibility of state and local taxes (SALT) has received a lot of attention. Households that itemize deductions and pay over $10,000 in combined state and local taxes will no longer be able to deduct more than this amount when calculating their taxable income for federal taxes.

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How Slow Sales Tax Growth Causes Funding Problems for the MBTA

Almost 20 years ago, a penny of the sales tax was dedicated to the MBTA to be a steadily growing source of revenue for the transit system. But despite some help from the Legislature, the sales tax transfer has grown slower than the economy, creating a persistent gap between the projected funds and actual sales tax transfers. Sales taxes have underperformed for the MBTA as a result of a shift to services, some transactions moving online, and exclusion of fast-growing meals tax revenues from the MBTA. An appendix explains the formula for determining the MBTA sales tax transfer and how other sales taxes are allocated.

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