What if the state plans to increase income tax if the feds have significant cuts, and match the timelines of the cuts? For example, if the Feds cut the rate by 5%, the state has a 2% increase?
What if the state plans to increase income tax if the feds have significant cuts, and match the timelines of the cuts? For example, if the Feds cut the rate by 5%, the state has a 2% increase?
The state WILL NOT be increasing the income tax. It recently spent almost 20 years lowering the income tax from 5.95% to 5.00% from a ballot initiative approved by the voters in 2000 that the Legislature amended to slow walk the rate reduction over that period of time. Plus two years ago the voters amended the state constitution to bifurcate the income tax rate for the first time in the Commonwealth’s history and add another 4% for taxable income over $1 million dollars.
I’d suspect the operating shortfall will be addressed through multiple revenue raising measures plus some cost cutting but in no way will the income tax be part of the solution.
Edit: Fat finger error changed from 5.85% to 5.95%
