People up on the state ballot initiatives have probably noticed that there's an item on the Massachusetts ballot to end the state income tax. Ignoring details of whether this will actually happen if the measure passes, where does the money come from and where does it go?
At the state level there's a good summary of FY09 spending
, totaling $23.2 billion. Almost half of state outlays go to "health and human services", with a huge chunk of that being state-funded health insurance programs. About $1.8 billion supports debt service, about $1 billion goes to the lottery. $6.2 billion goes to "education", of that $4.6 billion is primary and secondary education, $0.6 billion pre-primary, and most of the rest college-level. I can't find a specific line item for "assistance to cities and towns" but there are a number of things in the itemized listing
that support that -- $3.9 billion for schools, $0.9 billion from the lottery, and a couple of smaller things. (I cannot immediately find the T in here.)
Information on the revenue side is harder to find, but this report
has more comprehensive numbers. This talks about a lot of things, including money the state spends that's not in the budget proper. For FY2008 total revenue was $41.5 billion, of which $22.5 billion is "taxes" (pp. 32-33). (There's some scary-looking discussion of interest rate swaps on pages 65-66.) The table on page 314 finally gets down to the number I'm after: in FY2008 $12.4 billion of state revenue was from income taxes, vs. $4.1 billion from sales and use taxes and $1.5 billion for corporate taxes. At the end of the day, then, this is almost exactly 30% of state revenue.