BOSTON (CBS) — It’s tax season, so Massachusetts Taxpayers Foundation President Eileen McAnneny sat down with WBZ political analyst Jon Keller to talk about how our taxes are being used on Beacon Hill, and what the prospects are for our state’s economy and for tax revenues.
Keller asked McAnneny why tax revenue growth has been so sluggish.
“I think this economic recovery that we’re in has been different from other economic recoveries,” she said. “A principal difference is that tax revenues have grown at a slower rate than they have in previous recoveries. And the other thing is, this economic recovery is of longer duration, we’re now in year 9 of the economic recovery.”
McAnneny said there’s still year over year revenue growth–but the problem is that spending on Beacon Hill hasn’t slowed to match it.
“If you look at ten, fifteen years ago, the amount of money that the state had to spend on it’s obligations, called non-discretionary spending–things like debt service or pensions or MassHealth–that represented about 50 percent of all spending. It now represents 70 percent.”
Keller and McAnneny also talked about the proposed 4 percent tax on income over $1 million, and the potential impact of President Trump’s policies on Massachusetts.
You can listen to Keller At Large on WBZ News Radio every weekday at 7:55 a.m. You can also watch Jon on WBZ-TV News.