BOSTON (WWLP) - The Mass. Commission on tax fairness has uncovered data that shows low-wage earners are paying a higher percentage of their income to taxes.
The Commission's job is to recommend ways to make the tax code simpler and fairer.
The data they found shows that the lowest earning 20% of people in 2011 gave 12.2% of their earnings to Uncle Sam, that's compared with 5.7% for the highest wage earners.
Massachusetts has a flat tax when it comes to income, meaning that everyone, regardless of what they earn, pays the same rate of 5.3%.
According to Ray MaAgero of Liberty Tax, “What might be happening is at the lower wage earner levels, if you consider the sales tax that's being paid by the lower wage earners that might be a larger percentage of their tax burden versus the higher income people. As income taxes go, across the board, their pretty much the same on the gross level, but there's also certain credits that might be available to lower wage earners that higher wage earners don't have the benefit of.”
This newly formed Mass. Commission has until March 1st to submit recommendation to the Department of Revenue on how to make the tax system fairer.