New Tax Analysis

I saw an article in the Concord Monitor about taxation in relation to income.  I had not seen any similar discussion in any of the Massachusetts newspapers, so I thought I would check out the Institute on Taxation and Economic Policy and see how Massachusetts fared.  It turns out that we are equally, if not more greatly skewed to the lower levels of the income scale paying a greater percentage of income in taxes than NH.  Here are a few of the numbers:

  • The lowest 20% of earned income (less than $20,000 per year) pay 10.1% of their income in taxes.
  • The second 20% (income of $20,000 to $41,000) also pay 10.1% of their income in various taxes.
  • The upper 1% of income (income $683,000 or more) pay only 4.8% of their income in taxes.

The analysis points out that our state tax system is quite regressive in that we use a single rate tax system (one pays the same percentage of income in taxes to the state regardless of earning level) and the state does not provide any elderly tax relief for property taxes.

The study also illustrates that the composition of state tax revenues has not changed dramatically in the past decade.  In comparing 1997 and 2007 data, the analysis showed that 31% of tax revenue in the state is in the form of income taxes and 25% in property taxes in both years.

You can see this analysis here:  Massachusetts Fact Sheet

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s