Boston's heavy tax burden weighs down economic growth

from NewsLink, Vol. 4, No. 4, Summer 2000

In the New Economy, metropolitan areas around major American cities are competing to attract the highly-skilled workers who drive economic growth. One measure of Boston's attractiveness as a place to live and work is the total tax burden its residents face. The Beacon Hill Institute asked Suffolk University chair and associate professor of accounting and taxation, James Angelini, to compare the total state and local tax burden per taxpayer for the 50 largest metropolitan areas. Computations were made using state income and sales taxes, local taxes and property taxes for a typical family with two children, filing jointly. The family was assumed to have a household earned income of $75,000 and own a 2,000 square foot house with a 30-year mortgage.

 

The findings: Boston residents have a total tax burden of $11,967, the second highest tax burden in the country.

Professor Angelini used ReloSmart software, which he developed (see www.monstermoving.com).

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