By Paul McMorrow, CommonWealth Magazine
Andrew Bagley, director of research at the Massachusetts Taxpayers Foundation, believes the sales tax has suffered because Massachusetts never regained all the jobs it lost in the 2001 recession. When the economy was on the upswing, he says, the state saw no real job growth; the most recent recession, he says, has “decimated consumer spending, and consumers are deleveraging.” Bagley says the sales tax will continue to “lag in growth,” making the state budget more dependent on income taxes. That also means the T shouldn’t expect a big revenue bump any time soon.