Post by Logan on Jun 26, 2016 6:27:15 GMT -6
The economic tsunami from the United Kingdom’s vote to exit from the European Union could soak the Massachusetts state budget, already facing what could be a $750 million gap in the fiscal year that starts next week.
With markets roiled, experts warned of immediate effects on state revenue from the capital gains tax, a levy on investment profits. And they cautioned that the as-yet-unknown ripples from the vote could drag down other state tax revenues, potentially limiting the services the state can provide to its 6.8 million residents.
“The UK’s withdrawal from the EU may send shock waves through the Massachusetts economy in numerous ways that we can’t fully anticipate, with potentially profound effects on the Massachusetts budget, a scenario for which we are ill-prepared,” said Eileen McAnneny, who leads the Massachusetts Taxpayers Foundation.
McAnneny’s business-backed group has for years been pressing budget officials — mostly unsuccessfully — to put more money in the state’s emergency savings account.
Read more: www.bostonglobe.com/metro/2016/06/24/market-fears-grow-worries-over-mass-budget/miAdoe68EosjOwlac4eQeL/story.html
With markets roiled, experts warned of immediate effects on state revenue from the capital gains tax, a levy on investment profits. And they cautioned that the as-yet-unknown ripples from the vote could drag down other state tax revenues, potentially limiting the services the state can provide to its 6.8 million residents.
“The UK’s withdrawal from the EU may send shock waves through the Massachusetts economy in numerous ways that we can’t fully anticipate, with potentially profound effects on the Massachusetts budget, a scenario for which we are ill-prepared,” said Eileen McAnneny, who leads the Massachusetts Taxpayers Foundation.
McAnneny’s business-backed group has for years been pressing budget officials — mostly unsuccessfully — to put more money in the state’s emergency savings account.
Read more: www.bostonglobe.com/metro/2016/06/24/market-fears-grow-worries-over-mass-budget/miAdoe68EosjOwlac4eQeL/story.html