NewburyportNews.com, Newburyport, MA

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November 19, 2012

No income tax break for Mass. residents next year

(Continued)

“Therefore, I hereby certify that the thresholds for lowering the Part B income tax rate as set forth in the Act have not been met, and that the Part B income tax rate will be kept unchanged at 5.25% for the tax years 2013 and thereafter,” Pitter wrote in her letter to Gonzalez. She added, “This statement should be considered as my final statement with respect to the Part B income tax rate and that no further certifications are necessary on this matter.”

The news comes as the Patrick administration eyes mid-year spending cuts with tax collections running more than $250 million behind budget benchmarks. State officials are also bracing for federal aid reductions that are contingent on ongoing talks in Washington, D.C., over deep spending cuts and tax increases scheduled to take effect in 2013.

In a statement, Jones said the stalled income tax cut reflected the current state of the economy.

“The fact that positive revenue growth should have been a relatively easy hurdle to clear further proves how the Commonwealth’s economy remains extremely fragile,” Jones said in a statement. “Unfortunately, hard-working taxpayers and struggling families have just been dealt another blow during these trying economic times. As such, it is imperative that Governor Patrick and Democratic leaders on Beacon Hill see this as a clear signal that any statewide tax increase would be disastrous.”

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