This post was contributed by a community member. The views expressed here are the author's own.

Health & Fitness

Massachusetts Meets Key Economic Benchmarks; Will Cut State Income Tax

(BOSTON) – State Representative David P. Linsky joined his colleagues in the Massachusetts House of Representatives in recognizing Massachusetts’ thoughtful fiscal management, responsible budgeting and prudent investments as the Commonwealth announces an automatic reduction of the state income tax for the second time in three years. As of January 1, 2014 the rate will decrease from 5.25 percent to 5.2 percent.

To achieve the automatic rollback the state must reach various benchmarks including:

·         Inflation-adjusted growth for baseline revenues in fiscal year 2013 must exceed those from fiscal year 2012 by 2.5 percent;

Find out what's happening in Natickwith free, real-time updates from Patch.

·         The consecutive three month period between August and November 2013  must have a positive inflation-adjusted baseline revenue growth compared to the same three month period in 2012;

“Thanks to our sound fiscal management, economic growth initiatives and commitment to passing responsible, carefully designed budgets on time, Massachusetts has achieved stability and grown our economy,” House Speaker Robert. A DeLeo said. “I’m proud that we have been able to protect hardworking residents through our efforts and I believe this rollback is yet another encouraging step as we rebuild the economy.”

Find out what's happening in Natickwith free, real-time updates from Patch.

“Although there is still much work to be done, the Massachusetts economy is steadily improving,” Representative David P. Linsky said.  “Given the strong revenue growth the state has experienced this year, it is only right to reward the hardworking taxpayers of the Commonwealth with an income tax reduction."

Earlier this month, the Department of Revenue (DOR) reported that tax collections through November were $359 million above the fiscal 2014 (FY14) benchmark. Tax collections are up 9.7 percent over the first five months of FY14.

While savings assessments are based on individual earnings and therefore cannot be decisively forecasted, it is estimated that residents will save about $25 to $35 per year. 

###

 





We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?