taxation

The Commonwealth’s tax collections continue to slide, totaling $3.594 billion in January, $268 million below what the state collected in January 2023, and short of the revised benchmark by $263 million. Massachusetts state government must live within its means by reducing FY2025 spending. The days of fiscal surpluses, unprecedented increases in year-over-year spending, and flowing federal aid have come to an end.

Since the start of FY2024 on July 1, 2023, the state has experienced six straight months of revenues falling short of expectations. The single biggest factor is the unprecedented growth of the state budget since FY2021. The $15 billion increase in state spending contextualizes the seemingly modest projected revenue growth of 1.6 percent for FY2024 by highlighting that the base is very inflated.

The recent advancement of a tax bill H. 4104, that is expected to be enacted by the Legislature this week after languishing for more than 20 months, puts Massachusetts taxpayers one step closer to realizing some tax relief. However, it may be too little to tackle the Commonwealth’s affordability and competitiveness challenges.

A strong majority of registered Massachusetts voters oppose a plan recently announced by state legislative leaders that would change the way tax rebates are distributed in Massachusetts under a state law approved by voters in 1986, according to a new poll sponsored by Pioneer Institute and the Massachusetts High Technology Council.

The estate tax has become an increasingly significant source of revenue for the Bay State in recent years. Why is this: and is it a good thing?

New Hampshire collects less than half the amount of taxes per capita as Massachusetts. How do they do it, and which strategy produces better outcomes?

The MBTA is about to lose federal funding at a critical moment when ridership has not yet recovered. Will the state make up the difference?

Using Pioneer Institute’s newest database, Massachusetts IRS Data Discovery, we can see migration trends among Massachusetts citizens to other U.S. states and counties from 2019. For a specific example of migration, we can look at Barnstable County (Cape Cod) to see if...