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Understanding Our Tax System: A Primer for Active Citizens

Introduction


Taxes are the way that we combine resources, through government, to get things done that we can’t do as individuals: educate our children, build and maintain transportation infrastructure, provide police and fire protection, keep our air and water clean, promote public health, and maintain a social safety net. In a democracy people are ultimately responsible for deciding how much of their resources to commit to paying for these public goods, and how to share those costs. That’s what debates about taxation are about.


This guide will provide tools for everyone who wants to participate in those discussions. The report places our current tax system into context, describing both how it has changed over time and how it compares to other states. In addition, it examines each element of the Massachusetts tax system: how much does each of our taxes raise; how do different taxes affect different income groups; and, what have been the effects of changes in tax laws over the past few decades.