| There is a relationship between taxation and development. Prevailing public policy in Massachusetts equates development with economic growth. Promoting economic growth means creating jobs. To create jobs, incentives are offered to businesses in the form of tax breaks. However, evidence would indicate that such policies are marginally effective at best, and when the loss of services due to decreased revenue is factored in, these policies may very well be detrimental to the growth they seek to promote. Furthermore, a more comprehensive perspective on economic and social development raises serious questions about the appropriateness of a narrow focus on growth. Meanwhile, the tax structure of Massachusetts is very regressive. As such, it effectively represents a system of transfer payments from the poor, to the rich. By promoting already severe inequality, the tax structure is not only unfair, but also detrimental to sustainable development. We can do better, including a better understanding of what we mean by fairness, and what the goals of economic and social development should be. This thesis will offer a design of the tax structure of Massachusetts promoting such goals. |
