Governor Deval Patrick's Budget Recommendation - House 2 Fiscal Year 2015

Deferrals of Gross Income


Fiscal Year 2015 Resource Summary (in Millions)
TAX EXPENDITURE FY2011 FY2012 FY2013 FY2014 FY2015
Deferrals of Gross Income 985.6 953.8 987.1 1,043.1 1,141.3

View tax item language

item description amount
Deferrals of Gross Income 1,141.3
1.101 Net Exemption of Employer Contributions and Earnings of Private Pension Plans 2 809.1
1.102 Treatment of Incentive Stock Options N.A.
1.103 Exemption of Earnings on Stock Bonus Plans or Profit Sharing Trusts N.A.
1.104 Exemption of Earnings on IRA and Keogh Plans 2 250.8
1.105 Deferral of Capital Gains on Home Sales N.A.
1.106 Non-taxation of Capital Gains at the Time of Gift 81.4

Key:

ORIGIN  
IRCFederal Internal Revenue Code (26 U.S.C.)
U.S.C United States Code
M.G.L. Massachusetts General Laws
Rev. Rul.; C.B. Revenue Ruling; Cumulative Bulletin of the U.S. Treasury
ESTIMATES All estimates are in $ millions.


Footnote(s):

1 1 This item and others citing this endnote cover employee fringe benefits. We accept as standard the following treatment of these benefits: the expense incurred by the employer in providing the benefit is properly deductible as a business expense and the benefit is taxed as compensation to the employee as if the employee had received taxable compensation and then used it to purchase the benefit. Of course, there are problems with this analysis. In some cases, the "benefit" is more a condition of employment than a true benefit. For example, a teacher required to have lunch in the school cafeteria may prefer to eat elsewhere even if the school lunch is free. On the other hand, in many cases the provision of tax-free employee benefits is clearly a substitution for taxable compensation.

2 2 This item and others citing this endnote cover contributory pension plans. The standard tax treatment of these plans is as follows: Component Standard Treatment Contributions: Made out of income that is currently taxed to employees. Investment Income: Taxed to the employee as "earned" income. Distributions from Pension Funds: Tax-free to the extent they are made out of dollars previously taxed to the employees as contributions or investment income. The non-standard treatment of contributions, investment income, or distributions as described in items 1.006, 1.101, 1.104, and 1.402, results in either nontaxation or deferrals of tax.


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