Understanding Taxes

WHAT’S WRONG WITH OUR TAX SYSTEM? HOW CAN WE FIX IT?

Some Key Points – Our taxes support vital programs such as health care, education, police, and environmental protection. – It is fiscally and socially irresponsible not to provide adequate funding for vital services. It is not good for our economy to underfund vital services. – A tax system must be fair, or funding will fall short. Fairness ensures that taxpayers are able and willing to pay their taxes. – The current tax system in Massachusetts is not fair : Lower income people pay at a higher rate than the wealthiest, when all state and local taxes and loopholes are considered. – We can not and should not solve our budget problems by hiking fees paid by low and moderate income people. – There are tax system changes that will make the tax system fairer. But the Massachusetts Legislature has been ignoring the alternatives. Publications and Reports Tax Fairness: A Real Solution to the Budget Crisis MCHC Publication A01 [pdf] This report describes how fair taxes can solve the Massachusetts budget crisis. Better Ways to Fund Vital Services MCHC Publication A02.1 [pdf] This report suggests how the tax code can be revised to provide over $2 billion in additional revenues while moving toward greater fairness.

News and Views Why our tax system isn’t fair. Corporations are paying less – and this shifts the tax burden. Are Taxes Good for the Economy What is a good tax system? How do our taxes compare? The Fair Tax Solution More about taxes An Unfair Solution: Shaking Down the Blind Federal Taxes: Handout for Millionaires A search for taxing answers . . . IRS Losing Battle with Tax Cheaters Raytheon asked to reveal tax breaks Take Action! Call your state representative Links for More Information Center for Tax Justice Citizens for Tax Justice is a nonpartisan, nonprofit research and advocacy organization dedicated to fair taxation at the federal, state, and local levels. Institute on Taxation and Economic Policy Washington-based nonprofit focused on taxation and spending. Massachusetts Budget and Policy Center Analysis of budget and tax policy in Massachusetts Massachusetts Municipal Association MMA is a non-profit organization representing local governments. Massachusetts Taxpayer’s Foundation Corporate-sponsored analysis of Massachusetts tax policy. Good compilation of data on the state tax system.