June 02, 2015
PUBLIC FINANCE > Budget > FY 2016

MTF’s Analysis of Senate Tax Proposal in FY 2016 Budget

In its fiscal 2016 budget, the Senate proposed increasing the state’s earned income tax credit (EITC), raising personal exemptions, and funding those measures by freezing the income tax rate at 5.15 percent with the goal of increasing the state’s personal income tax progressivity. This bulletin analyzes the effects of the proposal, including the potentially negative impact on taxpayers who are at the higher end of income eligibility for the EITC, and the impact on the state’s revenue.