Gov. Maura Healey doubled down on her tax aid proposal Friday afternoon, two days after the state reported an enormous drop in April tax revenues.
Speaking to reporters contained in the State House, Healey mentioned tax aid is “not only affordable, but it’s essential.” The Democratic governor introduced earlier this yr a $742 million tax bundle that reduces the short-term capital positive aspects tax from 12% to five%, amongst different issues.
But after the Department of Revenue reported tax collections got here in $1.5 billion beneath projections, progressives have slammed Healey’s plan and one other proposal from the House as benefiting the “ultra-wealthy.”
The administration put collectively their fiscal 2024 finances proposal and tax aid bundle “knowing that there was likely to be some drop in revenue,” Healey mentioned Friday.
“We’ve seen a drop and I just want folks to know we’ve accounted for that,” Healey mentioned. “And it remains the case that our tax relief package that we propose, we stand by. We think it’s really important, particularly for those who can’t afford the cost of living right now in the state and also for Massachusetts competitiveness.”
Administration and Finance Secretary Matthew Gerkowicz additionally mentioned the administration’s tax aid bundle “remains affordable for the state.”
Raise Up Massachusetts, a progressive financial group, thinks in any other case.
“Now is not the time to be giving a permanent tax cut to the ultra-rich and large corporations,” spokesperson Andrew Farnitano beforehand informed the Herald. “We need flexibility in the state budget, and we need to be prioritizing the investments that will support economic growth in the future, like childcare, housing, higher education, and transportation.”
Massachusetts Fiscal Alliance spokesman Paul Craney mentioned it’s encouraging to see Healey double down on her “modest” tax aid bundle.
“What I would encourage the governor and the speaker and the Senate president is, after looking at the revenue drop off, they should be more emboldened to cut these taxes entirely, eliminate them,” he mentioned of the short-term capital positive aspects and property taxes.
Healey mentioned the numbers for April have been down due to a “dip in receipts from capital gains as well as pass through entities.”
“It’s not to say it’s not an insignificant number, but again, it’s accounted for in next year’s budget proposal and in the tax relief package, which is affordable and absolutely imperative,” she mentioned.
Source: www.bostonherald.com”