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Mass. Taxpayers In Line For Slight Income Tax Cut

By Bob Salsberg, AP
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BOSTON (AP) — Massachusetts taxpayers are in line for a slight cut in their state income taxes.

Barring a last-minute hitch, the tax rate will automatically be reduced from 5.3 percent to 5.25 on Jan. 1 due to sustained growth in revenue collections over the last year and a half.

The savings for the average taxpayer would be small. For example, a family with $50,000 in annual taxable income would save about $25.

Massachusetts Revenue Commissioner Amy Pitter told a Statehouse hearing Monday that a final determination on the tax cut will be made Thursday after a final review of tax collections for the past three months.

Pitter said she expected the cut to cost the state about $54 million in the current fiscal year and $114 million in the next fiscal year starting July 1.

Copyright 2011 The Associated Press.

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