August 10, 2020

Surprise! July state tax revenues increase

State officials scratching their heads; Could UI benefits be cause?

Bruce Mohl ,

Commonwealth Magazine

Eileen McAnneny, president of the Massachusetts Taxpayers Foundation, said the July numbers were perplexing. She said it was hard to understand how tax withholding – the amount withheld from worker paychecks and paid directly to the government in taxes – could be up $80 million compared to July 2019. She said there is some speculation that the increase in tax revenue may be related to unemployment insurance benefits. She noted the federal government was providing an additional $600-a-month payment to unemployed individuals through the end of July, with the figure of $600 selected because it represents the average gap between state unemployment benefits and a typical unemployed worker’s former pay.