Massachusetts Will Cut State Income Tax - Key Economic Benchmarks Met

Announcement Demonstrates Effect of Strong Fiscal Management and Prudent Investments in Achieving Economic Growth

State Rep Paul Heroux joined his colleagues in the Massachusetts House of Representatives in recognizing Massachusetts’ 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 1 January 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;
• 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.”

State Rep Heroux noted that this is a good example of "doing what you can, when you can" for the tax payers. 

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. 

Paul Heroux of Attleboro is the State Representative for the Second Bristol District. Paul can be reached at 508-639-9511 or paulheroux.mpa@gmail.com.