Support the news

Small Tax Cut To Take Effect In Mass.

Massachusetts taxpayers will ring in the new year with a tax cut - but a very small one.

The state's income tax rate drops from 5.25 percent to 5.2 percent on Wednesday. A state law requires an automatic .05 percent reduction in the rate when growth in state revenues exceeds certain benchmarks.

The Revenue Department says tax collections through November were running $766 million, or 9.7 percent, ahead of the same period in the previous financial year.

For most taxpayers, the Jan. 1 reduction will save less than $50 over the course of the year. But it will have an impact on state finances, with officials predicting a $65 million loss in revenue the state would have otherwise taken in for the remainder of the financial year that ends July 1.

This program aired on December 28, 2013. The audio for this program is not available.

+Join the discussion
TwitterfacebookEmail

Support the news