Here is some analysis I did on Governor Patrick’s tax proposal from his State of the Commonwealth address. His proposal will move us from regressive to progressive in overall tax structure and most taxpayers will pay the same or lower rates.
Gov. Patrick’s tax proposal would mean the same or lower rates for most taxpayers
A MORE PROGRESSIVE STRUCTURE SHIFTS BURDEN FROM LOWEST-INCOME PAYERS
On Wednesday, January 16 Massachusetts Governor Deval Patrick gave his seventh State of Commonwealth speech. In his speech he called for increased investment in Massachusetts education, infrastructure, and transportation—a welcome message given the increasing pressures on public schools and deteriorating roads, bridges, and a struggling transportation system. In order to pay for these additional investments, Governor Patrick proposed tax system changes that would raise the state income tax from 5.25% to 6.25%, increase the personal income tax exemption to minimize the effect on lower income taxpayers, and lower the state sales tax from 6.25% to 4.5%.
Why did Governor Patrick propose lowering one tax and raising another tax to raise additional revenue, and how would these tax changes affect taxpayers at various income levels?
Brent Benson (@bwbensonjr)