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Archive for August, 2008

BHI releases State Competitiveness Report 2006

For the third year in a row, The Beacon Hill Institute has found that Massachusetts outranks all other states in terms of its economic competitiveness. Despite persistent worries about population loss, the threat to its high tech base and high housing costs, the state�s economic fundamentals are strong, making it the state most able to sustain a high standard of living for its residents and best equipped to enjoy economic growth over the long term. It reaches this finding in its 6th annual State Competitiveness Report, released on Dec. 19

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Taxing Sales under the FairTax: What Rate Works?

As specified in Congressional bill H.R. 25/S. 25, the FairTax is a proposal to replace the federal personal income tax, corporate income tax, payroll (FICA) tax, capital gains, alternative minimum, self-employment, and estate and gifts taxes with a single-rate federal retail sales tax. The FairTax also provides a prebate to each household based on its demographic composition. The prebate is set to ensure that households pay no taxes net on spending up to the poverty level.

Previous studies suggest that the effective (tax inclusive) tax rate needed to implement H.R. 25 is far higher than the proposed 23% rate. This study, which builds on earlier analyses, shows that a 23% rate is eminently feasible and suggests why others reached the opposite conclusion.

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Taxing Sales under the FairTax: What Rate Works?

As specified in Congressional bill H.R. 25/S. 25, the FairTax is a proposal to replace the federal personal income tax, corporate income tax, payroll (FICA) tax, capital gains, alternative minimum, self-employment, and estate and gifts taxes with a single-rate federal retail sales tax. The FairTax also provides a prebate to each household based on its demographic composition. The prebate is set to ensure that households pay no taxes net on spending up to the poverty level.

Previous studies suggest that the effective (tax inclusive) tax rate needed to implement H.R. 25 is far higher than the proposed 23% rate. This study, which builds on earlier analyses, shows that a 23% rate is eminently feasible and suggests why others reached the opposite conclusion.

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State runs out of excuses not to cut tax

The core issue, is not whether the state can afford the tax cut or how effectively it would stimulate the economy. The core issue is the value that the state – and the candidates – place on democracy.

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State runs out of excuses not to cut tax

The core issue, is not whether the state can afford the tax cut or how effectively it would stimulate the economy. The core issue is the value that the state – and the candidates – place on democracy.

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BHI forecast: Revenue growth to speed up for Fiscal Year 2008

Testifying before the annual consensus revenue forecast hearing conducted by the Joint Committee on Ways and Means on January 16, The Beacon Hill Institute reported that it expected tax revenue growth to speed up in Fiscal Year 2008, after falling off in FY 2007.

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BHI forecast: Revenue growth to speed up for Fiscal Year 2008

Testifying before the annual consensus revenue forecast hearing conducted by the Joint Committee on Ways and Means on January 16, The Beacon Hill Institute reported that it expected tax revenue growth to speed up in Fiscal Year 2008, after falling off in FY 2007.

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Sales Tax holiday boosts Bay State economy by $64 million creating 162 jobs

An economic analysis by the Beacon Hill Institute at SuffolkUniversity finds that the sales-tax holiday created scores of jobs and boosted the economy by tens of millions of dollars.

The tax-free weekend, which ended at midnight last night, suspended the Commonwealth’s 5% sales tax on select purchases up to $2,500. Officials estimated that it would cost the state $12.8 to $19.2 million in tax revenue.

The institute bases its findings on its State Tax Analysis Modeling Program (STAMP). STAMP is a “computable general equilibrium” (CGE) tax model – a computerized method of accounting for the economic effects of tax policy changes. The models have been used successfully by policymakers, research institutes and tax policy researchers. BHI simulated the estimate of revenue loss after adjusting for purchases that would have been made at another time in the year.

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DGT Op-Ed in Boston Globe: Throwing a flag on paid details

“The unions say that officers on detail are worth the cost because they can make arrests when a crime happens nearby. But if we want to pay officers to stand around and wait for a crime to happen, we should put them in high-crime areas, not at work sites. The unions also contend that details don’t burden taxpayers because it is mostly private construction or utility companies that have to pay. But construction and utility companies don’t pay for details out of charity. They pass the costs on to consumers.”

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BHI: State tax revenues will rise slowly, by 2.4% in FY 08 and 4.1% in FY 09

BOSTON ) ? After examining current economic conditions and future
prospects for economic growth, the Beacon Hill Institute today released its
forecasts of Massachusetts state tax revenues for fiscal years (FY) 2008 and
2009. The Massachusetts economy is expected to continue to expand, but less
quickly than over the past two years. As a result, revenue growth will grow by
2.4% in FY 2008, down from the 6.8% increase seen in FY 2007 before
rebounding to a 4.1% growth rate in FY 2009.

Posted in Contributors on August 12, 2008 | There are currently Comments Off
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