Time for Progressive Taxes
Massachusetts stands out as the top 2 state in terms of clean energy leadership among states in the US. The federal government recently awarded an important financial grant to the state for investments in our education system. But while it is clear that all of this is only possible with our shared support, it often feels uncertain how this support should best be provided.
A recent report from the Tax Foundation shows us the importance the personal income tax has in the overall state's finances:
The report also shows how heavily the state relies on more regressive taxes such as property and sales taxes, and very little on corporate and other types of taxes. And while this information is not a surprise, it would be a welcome change to see a more balanced revenue structure. Corporations and individuals value the public structures we have in place in the state, but contribute in very different proportions for their creation and maintenance as shown in this recent report. While no one would argue that corporations play a key role in contributing to the state we cannot forget that the public structures that are in place make the state an attractive one for both businesses and families.
It is time to think about what we value in our communities and how we should pay for those structures. Reports like this one help us understand how the state gathers its resources and decide how we want to continue obtaining them. By gathering this type of information – from our state andacross the nation – we can build a tax system that shares responsibility in a more proportionate way among each person and corporation in our state.
A recent report from the Tax Foundation shows us the importance the personal income tax has in the overall state's finances:
“Massachusettsis the third most income-tax-dependent state in the nation, deriving 36.8 percent of its revenue from its 5.3 percent tax on individual earnings, and nearly cracked the top-ten list of states most dependent on property taxes, according to a new report from the Non-partisan Tax Foundation”
“Massachusetts derives 34.3 percent of its total government revenues from property taxes, 18.4 percent from sales taxes, 6.4 percent from corporate taxes and 4.2 percent from licenses and other taxes, according to the report.”The personal income tax in Massachusetts has been subject of debate for a few years now. Despite having a flat rate of 5.3%, adjustments such asthe Earned Income Tax Credit and exemptions for our lowest-income taxpayers mean that it is one of our state’s most progressive taxes. Over the years, people have also pushed to make it even more progressive by implementing a graduated income tax in Massachusetts – taxing higher income earners at higher levels than low-income earners.
The report also shows how heavily the state relies on more regressive taxes such as property and sales taxes, and very little on corporate and other types of taxes. And while this information is not a surprise, it would be a welcome change to see a more balanced revenue structure. Corporations and individuals value the public structures we have in place in the state, but contribute in very different proportions for their creation and maintenance as shown in this recent report. While no one would argue that corporations play a key role in contributing to the state we cannot forget that the public structures that are in place make the state an attractive one for both businesses and families.
It is time to think about what we value in our communities and how we should pay for those structures. Reports like this one help us understand how the state gathers its resources and decide how we want to continue obtaining them. By gathering this type of information – from our state andacross the nation – we can build a tax system that shares responsibility in a more proportionate way among each person and corporation in our state.