Statement on Governor Baker’s Sales Tax Holiday Proposal

“MassBudget holds a vision of an economically and racially just Commonwealth, one that is supported by fair and forward-thinking state tax and budget policy. Seen through that lens, the Governor’s proposal to suspend the state’s sales tax for August and September presents challenges. On the one hand, shifting our state tax system away from taxes like the sales tax, that fall most heavily on low-income households, makes good sense.  Unfortunately, spending the surplus this way forecloses  the ability to make investments that will transform opportunities for everyone in our Commonwealth – particularly for our low-income and BIPOC communities.

For instance, the tax dollars the Commonwealth would lose from this 2-month sales tax holiday could support local schools by accelerating funding for the Student Opportunity Act, provide opportunities for affordable childcare that will help businesses  and families, and encourage travel by enabling transit authorities to stop collecting burdensome bus fares. These and many other options exist for lawmakers to better target support to those communities and businesses in greatest need.”

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As Massachusetts voters have amended the state constitution to include a 4 percent surtax on taxable income over $1 million, MassBudget would like to offer policy suggestions to assist the Commonwealth in protecting this revenue and ensuring that it is directed to education and transportation, as specified in the amendment.

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Letter to Governor-elect Healey and Lieutenant Governor-elect Driscoll on a Family Tax Credit

A letter to Governor-elect Healey and Lieutenant Governor-elect Driscoll on a consolidating different family tax supports into one simpler, fully refundable Family Tax Credit.

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Massachusetts Capital Budget 101

The capital budgeting process takes place largely out of the public eye but is responsible for building and maintaining critical state infrastructure. Learn more about it here.

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