Mass Budget Briefing 4/1/09
Transcript of Mass Budget Briefing 4/1/09
![Page 1: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/1.jpg)
August 2, 2004
State Fiscal Conditions & Our Future
Massachusetts Budget and Policy Center15 Court Square, Suite 700, Boston, MA 20108
617.426.1228www.massbudget.org
![Page 2: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/2.jpg)
August 2, 2004
MA Taxes Lower Than U.S. Average
5.000%
7.575%
10.150%
12.725%
15.300%N
Y AK ME LA DC HI
VT NM NJ RI WI
WV CA NE
OH IN ND
MN CT UT AR KS U.S. KY DE PA IL NC
MD MS
WA IA ID MT MI
GA MA AZ OR
NV FL VA OK SC MO CO TX AL TN SD NH
% of
Per
sona
l Inc
ome
Total State and Local Taxes, FY 2006
![Page 3: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/3.jpg)
August 2, 2004
FY 2009: Initial Budget Gap
![Page 4: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/4.jpg)
August 2, 2004
FY 2009: Initial Budget Gap
Spending Revenue0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
![Page 5: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/5.jpg)
August 2, 2004
FY 2009: Initial Budget Gap
Spending Revenue0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
![Page 6: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/6.jpg)
August 2, 2004
FY 2009: Initial Budget Gap
Spending Revenue0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
![Page 7: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/7.jpg)
August 2, 2004
FY 2009: Initial Budget Gap
Spending Revenue0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
Spending Revenue0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
![Page 8: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/8.jpg)
August 2, 2004
FY 2009: Initial Budget Gap
Spending Revenue0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
Spending Revenue0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
![Page 9: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/9.jpg)
August 2, 2004
FY 2009: Initial Budget Gap
Spending Revenue0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
Spending Revenue0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
![Page 10: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/10.jpg)
August 2, 2004
The Governor’s 9C Cuts
0
8,500,000,000
17,000,000,000
25,500,000,000
34,000,000,000
Spending Revenue
952,000,000
![Page 11: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/11.jpg)
August 2, 2004
The Governor’s 9C Cuts
0
8,500,000,000
17,000,000,000
25,500,000,000
34,000,000,000
Spending Revenue
952,000,000
Spending Revenue0
8,500,000,000
17,000,000,000
25,500,000,000
34,000,000,000
![Page 12: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/12.jpg)
August 2, 2004
The Governor’s 9C Cuts
Spending Revenue0
8,500,000,000
17,000,000,000
25,500,000,000
34,000,000,000
Spending Revenue0
8,500,000,000
17,000,000,000
25,500,000,000
34,000,000,000
![Page 13: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/13.jpg)
August 2, 2004
The Governor’s 9C Cuts
Spending Revenue0
8,500,000,000
17,000,000,000
25,500,000,000
34,000,000,000
Spending Revenue0
8,500,000,000
17,000,000,000
25,500,000,000
34,000,000,000
![Page 14: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/14.jpg)
August 2, 2004
The Governor’s 9C Cuts
Spending Revenue0
8,500,000,000
17,000,000,000
25,500,000,000
34,000,000,000
952,000,000
Spending Revenue0
8,500,000,000
17,000,000,000
25,500,000,000
34,000,000,000
![Page 15: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/15.jpg)
August 2, 2004
FY2010 Preliminary Budget Gap
![Page 16: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/16.jpg)
August 2, 2004
FY2010 Preliminary Budget Gap
Spending Revenue$0
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
![Page 17: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/17.jpg)
August 2, 2004
FY2010 Preliminary Budget Gap
Spending Revenue$0
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
![Page 18: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/18.jpg)
August 2, 2004
FY2010 Preliminary Budget Gap
Spending Revenue$0
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
![Page 19: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/19.jpg)
August 2, 2004
![Page 20: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/20.jpg)
August 2, 2004
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
2.15%
4.30%
6.45%
8.60%
% To
tal P
erso
nal I
ncom
e
![Page 21: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/21.jpg)
August 2, 2004
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
2.15%
4.30%
6.45%
8.60%
% To
tal P
erso
nal I
ncom
e
![Page 22: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/22.jpg)
August 2, 2004
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
2.15%
4.30%
6.45%
8.60%
% To
tal P
erso
nal I
ncom
e
![Page 23: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/23.jpg)
August 2, 2004
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
2.15%
4.30%
6.45%
8.60%
% To
tal P
erso
nal I
ncom
e
![Page 24: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/24.jpg)
August 2, 2004
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
2.15%
4.30%
6.45%
8.60%
% To
tal P
erso
nal I
ncom
e
![Page 25: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/25.jpg)
August 2, 2004
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
2.15%
4.30%
6.45%
8.60%
% To
tal P
erso
nal I
ncom
e
![Page 26: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/26.jpg)
August 2, 2004
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
2.15%
4.30%
6.45%
8.60%
% To
tal P
erso
nal I
ncom
e
![Page 27: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/27.jpg)
August 2, 2004
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
2.15%
4.30%
6.45%
8.60%
% To
tal P
erso
nal I
ncom
e
![Page 28: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/28.jpg)
August 2, 2004
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
2.15%
4.30%
6.45%
8.60%
% To
tal P
erso
nal I
ncom
e
![Page 29: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/29.jpg)
August 2, 2004
Spending Has Mostly Stayed Constant
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
2.15%
4.30%
6.45%
8.60%
% To
tal P
erso
nal I
ncom
e
![Page 30: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/30.jpg)
August 2, 2004
State’s Own Spending Has Declined
0%
1.75000000000000026%
3.50000000000000051%
5.25000000000000077%
7.00000000000000102%
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
6.90%6.80%6.80%6.60%7.00%6.80%
6.40%6.60%6.40%6.70%6.60%
% To
tal P
erso
nal I
ncom
e
![Page 31: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/31.jpg)
August 2, 2004
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
1.575%
3.150%
4.725%
6.300%
% To
tal P
erso
nal I
ncom
e
![Page 32: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/32.jpg)
August 2, 2004
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
1.575%
3.150%
4.725%
6.300%
% To
tal P
erso
nal I
ncom
e
![Page 33: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/33.jpg)
August 2, 2004
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
1.575%
3.150%
4.725%
6.300%
% To
tal P
erso
nal I
ncom
e
![Page 34: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/34.jpg)
August 2, 2004
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
1.575%
3.150%
4.725%
6.300%
% To
tal P
erso
nal I
ncom
e
![Page 35: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/35.jpg)
August 2, 2004
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
1.575%
3.150%
4.725%
6.300%
% To
tal P
erso
nal I
ncom
e
![Page 36: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/36.jpg)
August 2, 2004
State Tax Revenues Have Declined
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY080%
1.575%
3.150%
4.725%
6.300%
% To
tal P
erso
nal I
ncom
e
![Page 37: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/37.jpg)
August 2, 2004
Chapter 70 Education Aid
1,500
2,375
3,250
4,125
5,000
FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Mill
ions
of $
(FY1
0)
15% decrease from FY02
Adjusted Using the Inflation Factor Identified in Chapter 70
![Page 38: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/38.jpg)
August 2, 2004
Chapter 70 Education Aid
1,500
2,375
3,250
4,125
5,000
FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Mill
ions
of $
(FY1
0)
11% decrease from FY02
Includes ARRA funding Adjusted Using the Inflation Factor Identified in Chapter 70
![Page 39: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/39.jpg)
August 2, 2004
During the Fiscal Crisis We Cut State Education Aid More Than Most States
![Page 40: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/40.jpg)
August 2, 2004
Higher Education
800
950
1,100
1,250
1,400
FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Mill
ions
of $
(FY1
0)
32% decrease
![Page 41: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/41.jpg)
August 2, 2004
Higher Education
800
950
1,100
1,250
1,400
FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Mill
ions
of $
(FY1
0)
20.5% decrease
Includes ARRA funding.
![Page 42: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/42.jpg)
August 2, 2004
Local Aid
0
400
800
1,200
1,600
FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Mill
ions
of $
(FY1
0)
29% decrease
![Page 43: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/43.jpg)
August 2, 2004
Public Health
0
100
200
300
400
500
600
700
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Mill
ions
of $
(FY1
0)
20% decrease
![Page 44: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/44.jpg)
August 2, 2004
Public Health
0
100
200
300
400
500
600
700
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Mill
ions
of $
(FY1
0)
19% decrease
Includes ARRA funding.
![Page 45: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/45.jpg)
August 2, 2004
Environment
0
50
100
150
200
250
300
350
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Mill
ions
of $
(FY1
0)
29% decrease
![Page 46: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/46.jpg)
August 2, 2004
Filling the FY2010 Budget Gap
![Page 47: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/47.jpg)
August 2, 2004
Filling the FY2010 Budget Gap
Cuts and Savings1.63
![Page 48: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/48.jpg)
August 2, 2004
Filling the FY2010 Budget Gap
Revenues0.59
Cuts and Savings1.63
![Page 49: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/49.jpg)
August 2, 2004
Filling the FY2010 Budget Gap
Stabilization Fund0.59
Revenues0.59
Cuts and Savings1.63
![Page 50: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/50.jpg)
August 2, 2004
Filling the FY2010 Budget GapFederal Recovery Aid
0.71
Stabilization Fund0.59
Revenues0.59
Cuts and Savings1.63
![Page 51: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/51.jpg)
August 2, 2004
A Tax System Should Be…
![Page 52: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/52.jpg)
August 2, 2004
A Tax System Should Be…
Adequate
![Page 53: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/53.jpg)
August 2, 2004
A Tax System Should Be…
Adequate
Stable
![Page 54: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/54.jpg)
August 2, 2004
A Tax System Should Be…
Adequate
Stable
![Page 55: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/55.jpg)
August 2, 2004
A Tax System Should Be…
Adequate
Stable
Simple/Efficient
![Page 56: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/56.jpg)
August 2, 2004
A Tax System Should Be…
Adequate
Stable
Simple/Efficient
![Page 57: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/57.jpg)
August 2, 2004
A Tax System Should Be…
Adequate
Stable
Simple/Efficient
Fair
![Page 58: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/58.jpg)
August 2, 2004
MA State & Local Taxes are Regressive
0%
3.75%
7.50%
11.25%
15.00%
Less than $18,000 Lowest 20% $58,000 - $97,000 Fourth 20% $526,000 or more Top 1%
% of
Per
sona
l Inc
ome
TOTAL TAXESEffect of Federal Deduction
Top 20%Source: ITEP, 2006 data
![Page 59: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/59.jpg)
August 2, 2004
Sales Taxes are Typically Regressive
$9,000
$41,750
$74,500
$107,250
$140,000
Lowest 20% Third 20% Highest 20%
Average annual incomeAverage annual expenditures
Source: Bureau of Labor Statistics, 2004 data
![Page 60: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/60.jpg)
August 2, 2004
Who Pays the Sales Tax in MA?
0.4%
1.3%
2.2%
3.1%
4.0%
Less than $18,000 Lowest 20% $58,000 - $97,000 Fourth 20% $203,000 - $526,000 Next 4%
% of
Per
sona
l Inc
ome
Source: ITEP, 2006 dataTop 20%
![Page 61: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/61.jpg)
August 2, 2004
MA Income Tax is Progressive
0.200%
1.275%
2.350%
3.425%
4.500%
Less than $18,000 Lowest 20% $58,000 - $97,000 Fourth 20% $526,000 or more Top 1%
% of
Per
sona
l Inc
ome
Source: ITEP, 2006 dataTop 20%
![Page 62: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/62.jpg)
August 2, 2004
Who benefits from an Income Tax Cut?
$10.0
$3,007.5
$6,005.0
$9,002.5
$12,000.0
Less than $19,800 Lowest 20% $63,800 - $105,200 Fourth 20% $218,000 - $562,500 Next 4%
$10,226
$1,776$751
$0$377$214$76
Aver
age
Tax
Cut
Tax Rate Cut From 5.95% to 5.3%
Source: ITEP, April 2008 Top 20%
![Page 63: Mass Budget Briefing 4/1/09](https://reader031.fdocuments.net/reader031/viewer/2022020218/55667d57d8b42ad5798b4f64/html5/thumbnails/63.jpg)
August 2, 2004
Who benefits from a Dividends & Interest Tax Cut?
$0
$3,000
$6,000
$9,000
$12,000
Less than $19,800 Lowest 20% $63,800 - $105,200 Fourth 20% $218,000 - $562,500 Next 4%
$10,057
$959$242$109$55$27$2
Aver
age
Tax
Cut
Tax Rate Cut from 12.0% to 5.3%
Source: ITEP, April 2008 Top 20%