The governor’s lengthy awaited and oft promised tax aid plan has arrived and totals greater than three-quarters of a billion {dollars} in cuts.
“Everywhere we go, the Lieutenant Governor and I hear from people who are struggling to get by as the cost of living continues to skyrocket past them – the family watching their grocery bill grow each week, the young mom who wants to return to her dream job but can’t afford child care, the recent college graduate who can’t afford both his rent and student loan payments, the seniors who want to keep the home where they raised their family,” Governor Maura Healey mentioned in a launch with the plan.
“We’re filing this tax relief package for each of them. This proposal centers affordability, competitiveness and equity each step of the way, delivering relief to those who need it most and making reforms that will attract and retain more businesses and residents to our great state,” she continued.
Due to be filed Wednesday alongside along with her first funds as governor, the tax lower plan totals $742 million in value with over $100 million in extra income impartial cuts.
The plan would get rid of the property tax for property totaling lower than $3 million by offering an as much as $182,000 tax credit score, one thing lengthy sought by tax reform proponents in an effort to make the state extra livable for retirees.
“This reform would reduce the tax burden on smaller estates, which historically have filed over 70 percent of estate tax returns, and helps seniors and families age in place and be able to stay in Massachusetts” Healey’s group mentioned with the discharge of the proposal.
The proposal additionally seeks to cut back the short-term capital positive aspects tax from 12% to five%, at an anticipated income value of $117 million, “but would be budget-neutral due to excess capital gains not being used to support FY24 spending,” Healey’s workplace mentioned.
Most of the price of the plan would see $458 million lower from state revenues by combining the Household Dependent Tax Credit and the Dependent Care Tax Credit to offer a $600 tax credit score per dependent with no cap on the variety of dependents.
It would spend one other $40 million to up the rental deduction from $3,000 to $4,000 and double the so-called senior circuit breaker credit score from $1,200 to $2,400, benefiting 880,000 renters and over 100,000 seniors.
“We need to address the trends that are pricing out low- and middle-income residents, and stop incentivizing higher earning residents and businesses to leave,” Doug Howgate, the President of the Massachusetts Taxpayers Foundation mentioned in a press release. “The proposal laid out today would help make Massachusetts less of an outlier compared to its peers and help the Commonwealth retain and grow its population, jobs, and investment. We look forward to working (with) the Administration and legislative leaders to advance tax relief this year.”
Source: www.bostonherald.com”