Massachusetts
MassBudget: What Does the Federal Tax Law Mean for Massachusetts and How Might the Commonwealth Respond?
January 22, 2018 • By ITEP Staff
The tax cuts are also skewed toward high-income tax filers when measured as a portion of their own incomes.
MassBudget: Sweeter than SALT: Highest-Income Households Get Federal Tax Cuts More Than Twice SALT Losses
January 11, 2018 • By ITEP Staff
For Massachusetts’ highest-income households – those with annual incomes over $1 million – the average tax cuts from other federal changes in the law are more than twice the average size of the impact from the loss of SALT deductibility.
How the Final GOP-Trump Tax Bill Would Affect Massachusetts Residents’ Federal Taxes
December 16, 2017 • By ITEP Staff
The final tax bill that Republicans in Congress are poised to approve would provide most of its benefits to high-income households and foreign investors while raising taxes on many low- and middle-income Americans. The bill would go into effect in 2018 but the provisions directly affecting families and individuals would all expire after 2025, with […]
How the House and Senate Tax Bills Would Affect Massachusetts Residents’ Federal Taxes
December 6, 2017 • By ITEP Staff
The House passed its “Tax Cuts and Jobs Act” November 16th and the Senate passed its version December 2nd. Both bills would raise taxes on many low- and middle-income families in every state and provide the wealthiest Americans and foreign investors substantial tax cuts, while adding more than $1.4 trillion to the deficit over ten years. The graph below shows that both bills are skewed to the richest 1 percent of Massachusetts residents.
How the Revised Senate Tax Bill Would Affect Massachusetts Residents’ Federal Taxes
November 13, 2017 • By ITEP Staff
The Senate tax bill released last week would raise taxes on some families while bestowing immense benefits on wealthy Americans and foreign investors. In Massachusetts, 56 percent of the federal tax cuts would go to the richest 5 percent of residents, and 17 percent of households would face a tax increase, once the bill is fully implemented.
How the House Tax Proposal Would Affect Massachusetts Residents’ Federal Taxes
November 6, 2017 • By ITEP Staff
The Tax Cuts and Jobs Act, which was introduced on November 2 in the House of Representatives, includes some provisions that raise taxes and some that cut taxes, so the net effect for any particular family’s federal tax bill depends on their situation. Some of the provisions that benefit the middle class — like lower tax rates, an increased standard deduction, and a $300 tax credit for each adult in a household — are designed to expire or become less generous over time. Some of the provisions that benefit the wealthy, such as the reduction and eventual repeal of the estate…
GOP-Trump Tax Framework Would Provide Richest One Percent in Massachusetts with 76.0 Percent of the State’s Tax Cuts
October 4, 2017 • By ITEP Staff
The “tax reform framework” released by the Trump administration and congressional Republican leaders on September 27 would not benefit everyone in Massachusetts equally. The richest one percent of Massachusetts residents would receive 76.0 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $771,800 next year. The framework would provide them an average tax cut of $136,960 in 2018, which would increase their income by an average of 4.5 percent.
In Massachusetts 56.1 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
August 17, 2017 • By ITEP Staff
A tiny fraction of the Massachusetts population (0.8 percent) earns more than $1 million annually. But this elite group would receive 56.1 percent of the tax cuts that go to Massachusetts residents under the tax proposals from the Trump administration. A much larger group, 40.0 percent of the state, earns less than $45,000, but would receive just 3.4 percent of the tax cuts.
Trump Tax Proposals Would Provide Richest One Percent in Massachusetts with 63.2 Percent of the State’s Tax Cuts
July 20, 2017 • By ITEP Staff
Earlier this year, the Trump administration released some broadly outlined proposals to overhaul the federal tax code. Households in Massachusetts would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $3,010,300 in 2018. They would receive 63.2 percent of the tax cuts that go to Massachusetts’s residents and would enjoy an average cut of $215,670 in 2018 alone.
State Rundown 7/11: Some Legislatures Get Long Holiday Weekends, Others Work Overtime
July 11, 2017 • By ITEP Staff
Illinois and New Jersey made national news earlier this month after resolving their contentious budget stalemates. But they weren’t the only states working through (and in some cases after) the holiday weekend to resolve budget issues.
State Rundown 6/7: Kansas Success Story and Other State News
June 7, 2017 • By ITEP Staff
This week, we celebrate a victory in Kansas where lawmakers rolled back Brownback's tax cuts for the richest taxpayers. Governors in West Virginia and Alaska promote compromise tax plans. Texas heads into special session and Vermont faces another budget veto, while Louisiana and New Mexico are on the verge of wrapping up. Voters in Massachusetts may soon be able to weigh in on a millionaire's tax, the California Senate passed single-payer health care, and more!
Massachusetts Budget and Policy Center: The Evidence on Millionaire Migration and Taxes
April 27, 2017 • By ITEP Staff
Economists consistently find that a well-educated workforce and a high-quality transportation system are among the bedrock elements upon which a prosperous state economy is built. Providing everyone with access to the education and training they need to reach their full potential boosts the productivity of individual workers and strengthens the overall economy.
Common Wealth: Dump the millionaire tax
January 12, 2017 • By ITEP Staff
“The state also supplements the federal Earned Income Tax Credit for joint filers with income less than $50,000. According to the Institute on Taxation and Economic Policy, these adjustments resulted in the lowest 20 percent of Massachusetts filers paying an effective state income tax rate of 0.8 percent in 2015. The next quintile pays an […]
Telegram & Gazette: Worcester property tax policy deserves study
December 20, 2016 • By ITEP Staff
“Low-income families generally pay a higher percentage of their earnings on state and local taxes. The Institute on Taxation and Economic Policy, for example, said that in 2015, families earning less than $22,000 annually paid 10.4 percent of their income on state and local taxes. Those earning between $22,000 and $44,000 paid 9.3 percent of […]
Worcester Telegram & Gazette: Clive McFarlane: Worcester trying to balance tax options
November 23, 2016 • By ITEP Staff
“Both the bureau’s and Mayor Petty’s proposal nevertheless would shift a greater share of the tax burden to those least able to afford it. The Institute on Taxation and Economic Policy, for example, has noted that ‘on average, poor homeowners and renters pay more of their income in property taxes than do any other income […]
Governing: Back-to-School Tax Holidays Losing Popularity Among Lawmakers
August 30, 2016 • By ITEP Staff
“[Tax holidays] don’t help lower-income people much either, according to the left-leaning Institute on Taxation and Economic Policy (ITEP).” Read more
Boston Globe: Mass. prepares for fight over proposed millionaires’ tax
May 18, 2016 • By ITEP Staff
“An analysis from the left-leaning Institute on Taxation and Economic Policy found that while poor and middle-income families pay about 10 percent of their income in state and local taxes, the highest-earning families pay just 6.5 percent.” Read more
Boston Globe: Study finds immigration reform would bring Massachusetts over $60 million in new taxes
February 26, 2016 • By ITEP Staff
“In January, Gov. Charlie Baker cut $49 million from Massachusetts’ state budget. But a study Wednesday found state and local governments could recoup well more than that amount, in the event that current undocumented immigrants in the state are granted full legal status. Massachusetts would bring in more than $60 million a year in new […]
MassLive: ‘Millionaires’ tax’ raises questions of fairness, business practices, transit needs at Statehouse hearing
January 19, 2016 • By ITEP Staff
“According to the Institute on Taxation and Economic Policy, the top 1 percent of Massachusetts earners (those making more than $860,000) pay 4.9 percent of their income in state and local taxes, while the middle 20 percent (those earning $44,000 to $70,000) pay 9.3 percent of their income in state and local taxes. This reflects […]
Massachusets Budget and Policy Center: Funding Improvements for Schools, Roads, and Public Transit with Tax Reforms that Improve Fairness
December 23, 2015 • By ITEP Staff
Our economic growth is not translating into significant economic progress for most of our people and this directly harms working families. The lack of more broadly shared economic progress also has harmed our state’s ability to make important investments that can make life better for working people.
Massachusetts Budget and Policy Center: Examining Tax Fairness
October 21, 2015 • By ITEP Staff
Taxes are the primary way we pay for the things that we do together through government. These include things like police and fire protection; public education; roads, bridges and public transportation; a safety net for when people face hard times; and more. Determining how much people at different income levels pay in taxes is important […]
Massachusetts Budget and Policy Center: Licenses for Immigrant Drivers in Massachusetts
October 21, 2015 • By ITEP Staff
Immigrants make important contributions to the Massachusetts economy. They spend income as consumers and contribute to state and local taxes.Yet, they often face barriers to full inclusion and economic stability. For instance, many immigrants with specific training and credentials from their home country have a difficult time finding jobs in their field because these foreign […]
Massachusetts Budget and Policy Center: Funding Improvements for Schools, Roads, and Public Transit with Tax Reforms that Improve Fairness
September 14, 2015 • By ITEP Staff
We can expand opportunity for our people and strengthen our economy by making smart investments to improve our schools; make our colleges and universities affordable; and build a transportation system that gets families, students, workers and customers to the places they need to be. There are fair and effective ways that we could pay for […]
TV Newsroom: Tax-Free Weekend Offers Great Savings
August 17, 2015 • By ITEP Staff
“The bottom line is that whatever policy goal you want to achieve through a sales tax holiday, there are probably better ways to achieve those goals”, said Matthew Gardner, executive director at the Institute on Taxation and Economic Policy.”
The Herald News: Sen. Michael Rodrigues: Why I Oppose the Massachusetts Sales Tax Holiday
July 29, 2015 • By ITEP Staff
It is that time of year again on Beacon Hill, when the Legislature debates and ultimately passes a sales tax holiday for a weekend in August. Let’s be clear, the tax holiday enables elected officials to break for summer recess on a high note, with something to tout to their constituents. The Institute on Taxation […]
