State Tax Revenue Increases are Larger than Proposed Cuts

Inflation-adjusted state tax revenue, FY 2010 through 2025, with dynamic estimates of revenue had the proposed three-stage income reduction from 5% to 4% been phased in already (billions)

Note: Dynamic estimates are based on long-run economic effects (2-3 years), but are shown as of the year of implementation for simplicity's sake. The static revenue estimate for FY 2025 with a 1 percentage point income tax rate reduction is $39.90 billion, compared to a long-run dynamic estimate of $40.63 billion.
Chart: Walczak Policy Consulting, The SALT Road SubstackSource: Massachusetts Department of Revenue; author's calculations.Download imageCreated with Datawrapper