Blue Mass Group

Reality-based commentary on politics.

Taxation tango: NH and MA

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I am trying to get a handle on some statistics that show how much revenue is garnered from NH residents that work in Mass on an annual basis.

Massachusetts Statistics of Income (SOI) Reports are available up to 1996 and are cryptic, staing only revenue from “non-resident” sources.

Any suggestions on where this info can be had? Need the “for Dummies” version.

Also, any data on estimated taxes NOT collected because MA residents cross the border to shop.

There must be some data, as they made the argument to repeal the “Blue Laws” because of eh-hem lost “sales” to MA retail businesses.

This info will be forwarded to our NH progressive community over on Blue Hampshire.

Please share widely!
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  1. An aside. Perhaps you are aware that even if NH passed an income tax, NH would not reap a single penney from the wages that NH residents earned in MA becuase of the personal income tax credit mechanism. (i.e. NH residents would get a credit against the NH tax approx equal to the MA tax paid)

    • How is it that Massachusetts gets first dibs. I fully realize that the wages are earned here, but how is it that Mass has “right of refusal” so to speak.

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      p>If MA went to a tax code based on consumption, rather then earnings, effectively giving up claim on wages earned to non-residents, then NH could levy a payroll tax.

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      p>Do we not need NH workers as much as we need their tax $$?

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      p>Sounds like they are sucking wind up ther’ya.

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      p>Would still like some data to crunch ‘n munch.

      • The general uniform rules:

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        p>1) Wages are taxed where they are earned.

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        p>2) ALL income of a state resident is taxed regardless where earned, but to prevent double taxation, the resident receives a credit equal to tax paid on income earned elsewhere.

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        p>So, if NH were to enact an income tax:

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        p>1) Residents of NH working in NH would pay the income tax to NH;

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        p>2) Non-residents who migrate INTO New Hampshire to work would pay NH tax and Mass would lose those tax revenues;

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        p>3) NH residents who migrate to MA to work would pay no additional NH tax because they’d get a credit for the Mass tax they pay.

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        p>Note: I’ve assumed the rates to be equal because there’s a rate diff issue here that I’m not discussing because it would complicate the explanation

  2. … I remember the guy in charge of the Census being interviewed on NHPR.  One of the things that came up in conversation was that NH people do not, overall, pay less tax.  They just chose differing sources for their revenue.

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