While the Massachusetts Legislature debates two versions of expanded tax credits to improve affordability for families, new census data dramatically show what a difference these credits make to reduce poverty, especially for children.
MassBudget testified in support of House bill 2826 and Senate bill 1758, which would end the sales tax exemption for personal aircraft. The exemption disproportionately benefits very wealthy individuals and worsens climate change by encouraging the most fuel-intensive form of travel.
The Fiscal Year 2024 budget is the first state budget to include money raised from the Fair Share Amendment, making important investments in education and transportation. Lawmakers took additional steps to create mechanisms that will facilitate transparency, stability, and protect the intent of the amendment.
ALL TAXES REPORTS
Newly conducted polling shows 77% of registered Massachusetts voters support the creation of a Child and Family Tax Credit of $600. The Massachusetts legislature is currently debating two competing proposals, one of which would provide a per-dependent benefit nearly twice as large as the other.
The Fair Share Amendment is doing what voters wanted it to do: making new, important investments in our Commonwealth and making our tax system more equitable.
Today the legislature passed a budget bill for Fiscal Year 2024. The $56.26 billion budget now goes to Governor Healey. Enabled by new revenue from the Fair Share Amendment that the voters passed last November, the FY2024 budget makes important investments in education and transportation.
Currently, a conference committee is working on a compromise tax package between the House’s and Senate’s proposals. The fairest tax package would be one that delivers its benefits overwhelmingly to low- and middle-income households and which greatly limits tax cuts for very high-income and wealthy households.
State-Level Child Tax Credits are Having a Moment in the Sun: Will Massachusetts Families be Left in the Dark?
The Massachusetts legislature is considering creating the Child and Family Tax Credit (CFTC), a refundable tax credit for families with children and adult dependents. It is important for our elected officials to choose a more generous option, as many of our neighbors’ household budgets strain under the weight of an affordability crisis.
The proposed Child and Family Tax Credit would help families by providing a refundable credit each year for each child under 13 and dependent adults over 65 years of age or with disabilities. This dashboard identifies – by legislative district – how many dependents would be eligible.
Massachusetts has a lower rate of outmigration among high-income households than among other households. This is true both in the most recent year for which IRS data are available (2020-2021) and over the preceding ten years (2011-2021).
Recently, multiple news articles, op-eds, and think tank reports have asserted that Massachusetts is suffering an exodus of households, particularly high-income households, fleeing to states with lower taxes. These claims about income migration are both overblown and based on a fundamental misunderstanding of the available data.
Fiscal Year 2024, which starts in July 2023, is the first state budget to include Fair Share dollars, and the Governor’s, House, and Senate budget proposals differ in how they would spend Fair Share funds. How do their priorities compare?
If lawmakers cut the Massachusetts estate tax, it is a small number of high-income, white households that will receive the overwhelming share of the benefits. These cuts would worsen the problem of wealth inequality and undermine our ability to address the problem.
Current estate tax proposals would lead to a loss of state revenue and reduce the Commonwealth’s ability to make crucial investments, while having regressive impacts on racial and economic equity. The state should seek alternatives.
What’s Race Got to Do With It? Some Tax Proposals Would Widen Racial Inequality, Others Would Advance Equity
Some of the tax cuts proposed by the Massachusetts House in 2023 would widen economic and racial disparities by disproportionately benefiting wealthier, generally whiter households. Other proposed tax changes would advance equity and would disproportionately benefit households of color.
Massachusetts lawmakers have proposed tax policy changes in 2022 and 2023 that would reduce public revenue by large amounts—providing the most benefits to the most affluent households. This table compares the major, permanent tax cut packages proposed since last year.
The newly passed surtax on annual incomes over $1 million brings a new opportunity for high-income residents to exploit a tax loophole. Policies in other states show how easily Massachusetts can fix this problem.
Meaningful credits for working families mixed with benefits solely for the wealthy – MassBudget reacts to House of Representatives’ recently released tax proposal.