Raising Revenue for Critical Investments
- We can create opportunity and growth in the Commonwealth by building a 21st Century education, innovation and transportation network for this generation and the ones that follow.
- In the FY14 budget, we are proposing new tax revenues to support these high-yield public investments in education, transportation and innovation.
- These revenues will be raised in a manner that improves the simplicity and fairness of our tax system and ensures our economic competitiveness.
- With these changes our taxes will be comparable to other states in the region and beyond with which we compete.
The Commonwealth Deserves a Revenue Proposal Which Will Honestly and Sustainably Finance Education, Transportation and Innovation for Our Future.
The Patrick-Murray Administration proposal creates growth and opportunity through long-term investments in education, transportation and innovation funded by making our tax system simpler and fairer.
The Governor's tax reform proposal ensures that all pay their fair share to support government services and investments we need to support growth and opportunity that benefits everyone. We will achieve this by:
- Cutting the sales tax from 6.25 percent to 4.5 percent - over a 25% decrease - and dedicating all proceeds to a fund for public works to support transportation, the school building fund and other infrastructure;
- Increasing the income tax rate by 1 percentage point to 6.25 percent;
- Doubling personal exemptions;
- Eliminating some complicated tax deductions that benefit select taxpayers; and Resubmitting some previously proposed measures.
The Patrick-Murray Administration's proposed tax reforms result in a simpler and fairer tax system by doubling personal exemptions, reducing the sales tax by over 25% and eliminating some complicated tax deductions that benefit select taxpayers.
Every tax filer will benefit from the doubling of the personal exemption and the decrease in the sales tax, including those who currently claim one of the 44 personal tax deductions that the Governor is proposing to eliminate.
These 44 tax deductions benefit select tax filers and make the tax code more complicated. Pairing their elimination with the doubling of the personal exemption and a dramatic reduction in the sales tax will make the tax system simpler and fairer.