ITEP Work in Action May 17, 2023
Massachusetts Budget & Policy Center: What’s Race Got to Do With It? Some Tax Proposals Would Widen Racial Inequality, Others Would Advance EquityLawmakers have proposed a variety of tax cuts, some of which would provide outsize benefits to the most affluent households and widen existing racial and economic disparities. Other proposed tax…
ITEP Work in Action March 21, 2023
Massachussets Budget & Policy Center: Taking Measure of the Governor’s Tax PlanGovernor Healey’s tax relief proposal would reduce state revenue available for future investments by $986 million annually. Three proposed tax credits would be progressive, meaning the benefits for lower-income households would…
blog February 9, 2023
Why the States Have a Major Role to Play If We Want Tax Justice
With fears of gridlock in a divided Washington, tax justice champions are building momentum in other places where there’s dire need for better tax policy: the states. We can upgrade communities across the country by making 2023 a year to win tax improvements in statehouses.
blog November 9, 2022
Massachusetts Voters Score Win for Tax Fairness with ‘Fair Share Amendment’
In a significant victory for tax fairness, Massachusetts voters approved Question 1—commonly known as the Fair Share Amendment—Tuesday night with 52 percent of the vote. The new constitutional amendment creates a 4 percent surcharge on income over $1 million, and the revenue will specifically fund education and transportation projects in the Bay State.
blog October 26, 2022
Measures on the November Ballot Could Improve or Worsen State Tax CodesIn a couple of weeks, voters in a handful of states will weigh in on several tax-related ballot measures that could make state tax codes more equitable and raise money…
ITEP Work in Action May 17, 2021
Massachusetts Budget & Policy Center: Ending the Tax Penalty Against Working Immigrants: MA Should Follow Other States Extending EITC to Immigrant Tax FilersThe Earned Income Tax Credit (EITC) is a key program for reducing poverty in the United States. Together with the federal Child Tax Credit, these low-income federal credits lifted 7.5…
ITEP Work in Action August 10, 2020
Massachusetts Budget and Policy Center: Supporting Racial Equity and a Robust Recovery with a Corporate Income Tax Rate IncreaseBy returning the state corporate income tax to pre2010 rates, the Commonwealth could raise $375 million to $500 million a year to help fund a racially equitable, economically just, and…
media mention June 21, 2020
Sentinel & Enterprise: It’s Been a Year Without EqualInstead, the last real action on the fiscal 2021 budget came in January when Baker rolled out a $44.6 billion spending plan that would have its underlying assumptions wiped away…
ITEP Work in Action January 31, 2020
Massachusetts Budget and Policy Center: The Gas Tax: What it is and Who PaysData from the Institute on Taxation and Economic Policy (ITEP) detail how the current system of state and local taxes in Massachusetts is regressive, largely because the state uses a…
blog July 18, 2019
Many States Move Toward Higher Taxes on the Rich; Lower Taxes on Poor People
Several states this year proposed or enacted tax policies that would require high-income households and/or businesses to pay more in taxes. After years of policymaking that slashed taxes for wealthy households and deprived states of revenue to adequately fund public services, this is a necessary and welcome reversal.
ITEP Work in Action July 16, 2019
CommonWealth: Before the T Derailed, its Funding Got on the Wrong TrackOverall, funding for the Commonwealth during the last two decades has relied increasingly on sales taxes and regressive user fees, while cutting income tax rates. As a result, we have…
ITEP Work in Action February 11, 2019
MassBudget: Why Highest Incomes in Massachusetts Receive Most Tax Benefits from Charitable DeductionOur Commonwealth does best when all people experience rising prosperity. But for several decades, the wealth and income of the top 1 percent of households has grown briskly while others…
ITEP Work in Action January 14, 2019
MassBudget: 14 Options for Raising Progressive RevenuePeople in Massachusetts seek to live in communities that provide a high quality of life for their family and neighbors. We value good schools, police and fire protection, libraries and…
ITEP Work in Action October 25, 2018
Massachusetts Budget and Policy Center: 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.
October 17, 2018
Massachusetts: Who Pays? 6th EditionMASSACHUSETTS Read as PDF MASSACHUSETTS STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next…
September 26, 2018
Tax Cuts 2.0 – MassachusettsThe $2 trillion 2017 Tax Cuts and Jobs Act (TCJA) includes several provisions set to expire at the end of 2025. Now, GOP leaders have introduced a bill informally called…
blog July 10, 2018
Building on Momentum from Recent Years, 2018 Delivers Strengthened Tax Credits for Workers and Families
Despite some challenging tax policy debates, a number of which hinged on states’ responses to federal conformity, 2018 brought some positive developments for workers and their families. This post updates a mid-session trends piece on this very subject. Here’s what we have been following:
blog May 22, 2018
Most States Have Raised Gas Taxes in Recent Years
An updated version of this blog was published in April 2019.
State tax policy can be a contentious topic, but in recent years there has been a remarkable level of agreement on one tax in particular: the gasoline tax. Increasingly, state lawmakers are deciding that outdated gas taxes need to be raised and reformed to fund infrastructure projects that are vital to their economies.
blog May 9, 2018
New Tax Subsidy for Private K-12 Tuition in Massachusetts Creates a Host of ProblemsLast year’s federal tax cut bill changed 529 college savings accounts in a major way, expanding them so that they can be used as tax shelters by higher-income families who…
ITEP Work in Action January 22, 2018
MassBudget: What Does the Federal Tax Law Mean for Massachusetts and How Might the Commonwealth Respond?
The tax cuts are also skewed toward high-income tax filers when measured as a portion of their own incomes.
ITEP Work in Action January 11, 2018
MassBudget: Sweeter than SALT: Highest-Income Households Get Federal Tax Cuts More Than Twice SALT Losses
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.
December 16, 2017
How the Final GOP-Trump Tax Bill Would Affect Massachusetts Residents’ Federal TaxesThe 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-…
December 6, 2017
How the House and Senate Tax Bills Would Affect Massachusetts Residents’ Federal Taxes
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.
November 13, 2017
How the Revised Senate Tax Bill Would Affect Massachusetts Residents’ Federal Taxes
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.
November 6, 2017
How the House Tax Proposal Would Affect Massachusetts Residents’ Federal Taxes
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 tax, become more generous over time. The result is that by 2027, the benefits of the House bill become increasingly generous for the richest one percent compared to other income groups.