local personal income tax

The New Resentment of the Poor

Here's a twist on the tax discussion...raise the taxes on those least able to pay (more) and who are currently paying the highest percentage of income in taxes.  This political platform may get a candidate more corporate contributions, but as we know, corporations aren't people and they don't vote.  Think about it...who earns the money that's not being contributed/taxed at the similar percentage of income basis to pay for the programs and services that we all depend and rely upon on a daily basis?

The moral argument would have been obvious before this polarized year. Nearly 90 percent of the families that paid no income tax make less than $40,000, most much less...At a time when high-income households are paying their lowest share of federal taxes in decades, when corporations frequently avoid paying any tax, it is clear who should bear a larger burden and who should not . [Full Editorial: The New York Times]

Should Massachusetts adopt a graduated tax system?

[Senator Jamie] Eldridge said changing to a system where very high income earners pay state taxes at a higher rate would not only be fairer but would potentially bring in more revenue for the state. Some of that money, he said, could be used to significantly increase state aid, which could be used by municipalities to offset costs of paying for schools, public safety, and other local services... Eldridge’s bill — “A Constitutional Amendment Creating a Progressive Income Tax” (S19) — is one of two proposals sent to the Legislature’s Committee on Revenue that are aimed at switching Massachusetts to a graduated tax system. [Full Article: Country Gazette]

AN UPDATE ON STATE BUDGET CUTS

This report from the Center on Budget and Policy Priorities outlines the economic and financial challenges of the US and how the states have dealt with these fiscal realities and consequences.

Cuts to state services not only harm vulnerable residents but also worsen the recession — and dampen the recovery — by reducing overall economic activity. When states cut spending, they lay off employees, cancel contracts with vendors, reduce payments to businesses and nonprofits that provide services, and cut benefit payments to individuals. All of these steps remove demand from the economy.  [Full Report:  Center on Budget and Policy Priorities]

Concord Proposal for a Local Income Tax - Is it Time for the State to make our Tax System more Progressive?

Concord SealThe wellbeing of communities across the Commonwealth relies on our capacity to work together through our government to continue building and supporting our public structures that provide quality education, public health, stable legal systems, safe recreation, clean water, and much more. We work through our government to protect these services when we elect our representatives, become civically engaged in our communities, and pay our taxes.

In a Globe article dated February 14th, Jennifer Fenn Lefferts reported how Concord is considering creative ways to reform its revenues to make its tax system more equitable. With an average property tax bill of $10,128, Concord has had trouble retaining lower-income and elderly residents and working farms.

The proposal calls for lowering the property tax and imposing a 2 percent tax on income. This means that each person would contribute a more equitable share of his or her income to the local community, making the overall local tax system more progressive.

Some other cities and states in the country, including New York City, allow the implementation of local income taxes. The Massachusetts Legislature would have to amend the state constitution to allow cities and towns in the state to implement and collect this new source of revenue.

It is interesting to note that Concord is considering a progressive local tax proposal at a time when some elected officials say there is no interest for more taxes. In addition to statewide revenue reforms, like the five previous ballot attempts to build a more progressive tax structure, maybe it is time to help communities like Concord create a tax system that sufficiently funds the needs, programs, and structures we all value and rely on in our own communities. Through these local initiatives we can demonstrate to our elected officials that our state as a whole needs real solutions to address our budget gap and the lack of resources needed to maintain and rebuild our public structures.

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