Conservatives like to slam Liberals by pointing out ‘Taxachussetts’. How high are Massachussetts taxes really, compared to other populous states? Does it deserve the epithet?
Massachuttes falls in about half way on the tax charts I’ve seen (but too lazy to look up during lunch). Just another example of the right wing blowing something out of proportion during the election last year. Hey it rythmes, let’s us it as a catch phrase, even if it dosen’t make any sense.
I don’t know about their taxes, but the phrase “Taxachussetts” (however it’s spelled) is significantly older that “the election last year”. I remember the charge being leveled against Mass. back in the lat 70’s and 80’s. Heck, even the simpsons made the joke (during the Simpsons go to Japan episode, IIRC) years ago.
And I’m pretty sure it got its start right here, because everyone no matter where they live thinks they must pay more taxes than anyone else.
Don’t hear it as much anymore, though. With a lot of cuts in state funding to schools, etc. over the last few years, folks in many communities are wishing they could raise taxes more than our “Proposition 2 1/2” law allows. (Communities are not allowed to increase the amount of tax they collect by more than 2 1/2% each year. When propertyy values go up, we actually have to lower the tax rate so we don’t go over Prop. 2 1/2.
And I’m pretty sure it got its start right here, because everyone no matter where they live thinks they must pay more taxes than anyone else.
Don’t hear it as much anymore, though. With a lot of cuts in state funding to schools, etc. over the last few years, folks in many communities are wishing they could raise taxes more than our “Proposition 2 1/2” law allows. (Communities are not allowed to increase the amount of tax they collect by more than 2 1/2% each year. When propertyy values go up, we actually have to lower the tax rate so we don’t go over Prop. 2 1/2.)
I don’t have a sales tax link, but here’s income, cigarettes and gas:
http://www.taxfoundation.org/individualincometaxrates.html
http://www.taxadmin.org/fta/rate/cigarett.html
http://www.incorporationblog.com/archives/000037.html
Like a good mystery, let us know how it comes out.
Even with the 60 second delay thing, I managed to double post. :smack:
Notice in the second one, though, the parentheses close at the end.
Doing a little research -
This Site indicates that Massachusetts’ Sales Tax is 5%. About average, and below such Liberal Bastions as Minnesota, Mississippi, Texas, and my own beloved Wyoming.
This Site lists Massachusetts’ Income tax rate at 5.3%. That is relatively high, especially considering it has only one tax rate (Hah, its a flat tax - take that Mr. Forbes) and is higher than many state’s highest income tax bracket. (20 states have lower tax rates for the highest brackets, have no income tax [yeah, Wyoming] or tax a portion based on Federal Taxes]. If you are in the lowest tax bracket, only Minnesota and North Carolina have higher rates. This information is confirmed here.
The last site also indicates that Massachusetts’ Corporate and Bank tax rates are relatively high, at 9.5% and 10.5% respectively. These taxes include
Only D.C., Minnesota, and Pennsylvania are higher. (Iowa and North Dakota are higher at the highest corporate tax bracket).
Mass.’ gasoline excise tax rate of 21% is right in line withthe national average, and the cigarette tax of 151 cents per pack make it 6th highest in the nation.
Generally, then, Massachusetts’ income tax is relatively high, but not the highest in the nation, and it’s sales taxes are relatively moderate. None of this, however, takes into account local property taxes, which can be high and vary from place to place with a state, nor does it take into account Mass. historical tax rates. I don’t know what thier taxes were in previous years, which is when I believe the Taxachusetts thing came from.
Oops, it looks like my confirmation of the income tax bracket is from the same site. Sorry.
I remember the term being common when I was growing up there in the 70’s. As a phrase, it helped pass Prop 2 1/2. It’s a very good example of a term that may have once had meaning retaining that meaning even when the underlying conditions no longer support it. I’m sure that the Dopers can readily think of a number of similar terms from the political realm.
When the term first came into use, it has to be said that there were some taxes that were seen as outrageous. For instance, there was a surcharge tax on the income tax, IIRC, that no longer exists.
In any event, the word now creates the reality for some people, rather than vice-versa.
So how much do people there pay overall? Here in the U.K. the standard rate of income tax is 23% (there’s a lower rate of 10% but most earn into the 23% bracket), and with 10% National Insurance and 17.5% VAT (the 17.5% is Net, equivalent to 11.5% Gross, payable on most purchases), that means we lose nearly half our income to the taxman. Those who earn over about £32,000 pay 40% income tax.
Not an answer as such, but:
Comparisons are difficult, because in the US you can pay income tax to the Federal Government, the state government, and the city where you work. Of course, rates vary from state to state and from city to city. In addition, most people pay a “social security tax”, based on income, to the Feds, which is often not counted when you talk about income taxes in the US for some reason. This, of course, ignores the different sales taxes imposed by state and local governments here. (Which are less than VAT is in the UK, but which are not calculated as a valued-added tax but as a tax on each consumer sale.)
This study shows the average state-local tax burden in MA ranks #36 out of 50, down from a peak of #2 in 1978-79.
I remember the term being bandied about clear back in the Kennedy Administration. Does anybody know Kennedy’s tax policies?
I can deduct my rent (up to $3000/year) here. No other state I’ve lived in has allowed that.
It should be noted that this decline began with the adoption of Proposition 2 1/2 of 1980, which placed strict limits on property taxes in the absence of local referenda to overcome the proposition’s limits. Massachusetts is a pretty Democratic place (despite mostly Republican governors, including the past 15 consecutive years, the legislature and local governments are dominated by Democrats), so that’s doubtless how their formerly high tax rates came to be associated with Democrats. However, it appears that both Democrats and Republicans in the political establishment opposed Proposition 2 1/2 at the time of its passage. It was a bipartisan, grassroots people’s revolt against the establishment which sent taxes there on a route back toward the national norms.
Also influencing the term is the fact that sobriquets like “Cal-levy-fornia” and “Collecticutt” just sound stupid and I can’t even think of something for New York that even rises to the level of stupid-sounding. 
I don’t know. “Collecticutt” sounds like a pretty good jab to me 
Given their budgetary record, “Stall-bany” comes to mind.
Kennedy actually got income taxes (both personal and corporate) lowered during his term as President.
As a resident of Massuchusetts from 1972 to 1978, I can vouch for the flack that was heaped on us by the residents of New Hampshire, Vermont and Maine but hell we at least had something to do in our spare time (besides the state liquor stores). Besides somebody had to subsidize the Red Sox and Patriots (except for 1975 of course)!!