THE EVERETT ADVOCATE – FRiDAy, July 14, 2023 Page 11 Report: Mass. is one of two states to see personal income drop New data shows personal income levels dropped as millionaire’s tax was enacted N ew data from the Bureau of Economic Analysis (BEA) released at the end of June shows Massachusetts and Indiana were the only two states in the entire country to see personal incomes drop during the fi rst quarter of 2023. During that time, the U.S. percentage change increased by 5.1%. In New England, Maine topped the nation at 11.4%; New Hampshire ranked 29th best at 6.1%; Vermont at 30th best at 6%; Rhode Island at 33rd cut at 36th Massachusetts at 49th best at 5.8%; Connectibest at 5.5%; and best at -0.9%. For comparison’s sake, Florida was 10th best at 7.9%. To read more about BEA’s data, go to https://www.bea.gov/ news/2023/gross-domesticproduct-state-and-personalincome-state-1st-quarter-2023 According to BEA, “Transfer receipts increased in 45 states and the District of Columbia, while growing 6.1 percent nationally. The growth in transfer receipts reflected an 8.7 percent increase in the costof-living adjustment for social security benefi ts. The percent change in transfer receipts ranged from 38.5 percent in Maine to –31.1 percent in Massachusetts (table 4). Transfer receipts was the leading contributor to growth in personal income in Maine, the state with the largest increase in personal income in the fi rst quarter. It was also the leading contributor to the decrease in personal income in Indiana and Massachusetts. Transfer receipts in all three states were impacted by one-time state refundable tax credits.” During the last two quarters of 2022 and the fi rst quarter of 2023, there were 18 states that enacted some form of a taxpayer refund. Massachusetts was among them due to the 1986 voter-approved law known as 62F, which was triggered during the fourth quarter of 2022. During the fourth quarter of last year, 62F was responsible for a 12% increase in the share of “personal current transfer receipts from refundable tax credits,” the highest percentage in the nation during that quarter. This information may be U.S. Bureau of Economic Analysis graphic found at https://www.bea.gov/ technical-note-personal-income-state-1st-quarter-2023 “This new data is stark for Massachusetts taxpayers and should be a very clear warning to State House lawmakers. While the nation benefi ted from rising incomes, and 48 other states experienced income growth, Massachusetts was nearly alone in its decline. At the same time, the income surtax amendment was enacted and began to have a clear impact on the state economy and our uncompetitiveness. In the New England region, every state saw income growth with Maine the highest in the country and New Hampshire the second highest in New England,” said Spokesperson/ Board Member Paul D. Craney of the Massachusetts Fiscal Alliance (MassFiscal). “BEA data also shows that the voter approved tax cap and rebate law known as 62F had an economic benefit to Massachusetts taxpayers during the REPORT | SEE PAGE 15
12 Publizr Home