President Obama's tax plan would lead to significant tax hikes starting in 2011, adversely affecting Massachusetts' economy by causing an average annual loss of 16,048 jobs and a reduction in disposable personal income by $8,023 per household from 2011 to 2020. The state would also see a dramatic increase in total individual income taxes by $16,859 million during the same period. These findings are based on calculations from the Heritage Foundation, utilizing data from various economic and labor sources.

1. THE EFFECTS OF THE OBAMA TAX PLAN
Massachusetts
President Obama’s tax plan would allow portions TOTAL EMPLOYMENT
of the 2001 and 2003 tax cuts to expire, resulting in Annual Change in Jobs
steep tax hikes beginning in January 2011 for small
2011 2015 2020
businesses and those earning $250,000 or more. 0
The tax hikes would significantly affect the economy
in Massachusetts, most notably in the number of –3,000
jobs and change in personal income.
–6,000
Among the results, from 2011 to 2020, the state
of Massachusetts would: –9,000
• Lose, on average, 16,048 jobs annually.
• Lose, per household, $8,023 in total disposable –12,000
personal income.
• See total individual income taxes increase by –15,000
$16,859 million.
–18,000
Source: Heritage Foundation calculations based on the IHS Global
Insight U.S. macroeconomic model, and data from the U.S. Census –21,000
Bureau and U.S. Department of Labor, Bureau of Labor Statistics.
–20,272
REAL DISPOSABLE INCOME TOTAL INDIVIDUAL INCOME TAXES
Annual Change per Household Annual Change in Millions of Dollars
$2,091.6
2011 2015 2020
$0 $2,250
$2,000
–$200
$1,750
–$400 $1,500
$1,250
–$600
$1,000
–$800 $750
$500
–$1,000
$250
–$1,200 $0
2011 2015 2020
–$1,015.54
Chart MA • Obama Tax Plan by State heritage.org

2. THE EFFECTS OF THE OBAMA TAX PLAN
Change in Employment in Massachusetts
Average Annual Change in Total
Employment, 2011 to 2020, by
Congressional District
Jobs Lost: 800–1,399
Jobs Lost: 1,400–1,599
Jobs Lost: 1,600–1,799 6
Jobs Lost: 1,800–2,320
5
7
8
1 3 9
2 10
4
10 10
State: 16,048 jobs lost annually on average
Source: Heritage Foundation calculations based on the IHS Global Insight U.S. macroeconomic model, and data from the U.S. Census Bureau and U.S.
Department of Labor, Bureau of Labor Statistics.
Map MA • Obama Tax Plan by State heritage.org