BOSTON (WWLP) – The tax relief debate on Beacon Hill has started once again after Governor Maura Healey released her plan on Monday morning.
The plan itself totals $859 million in tax relief and would offer breaks to many Massachusetts residents. However, the administration has been receiving some backlash. The Raise Up Massachusetts Coalition, the group behind the Fair Share Amendment, applauded the governor for multiple aspects of her plan, like the child and family credits, renter deduction and senior circuit breaker credit. But the group is also “deeply concerned” with other aspects of the tax relief package.
“The proposed changes to the estate tax would give a few thousand of the wealthiest families in the state a six-figure tax cut, while the cut to the short-term capital gains tax rate would reward wealthy day traders and real estate speculators for their risky financial maneuvering,” Raise Up Massachusetts said in a news release.
Under Healey’s plan, the short-term capital gains tax would go from 12% to 5%. Healey’s plan would also increase when the estate tax kicks to $3 million. It would also offer up to $182,000 in a new estate tax credit.
Raise Up Massachusetts believes these cuts oppose the will of the voters, who passed the 4% surtax on incomes over $1 million in November.
The right-leaning Massachusetts Fiscal Alliance is applauding Healey’s tax relief package saying in a statement, “Governor Healey has taken a positive first step with this tax package. The reform of our estate tax, in particular, is much needed to remedy our state from its outlier status, and it’s a welcomed surprise that Governor Healey’s proposal on this tax is even more competitive than her predecessor’s.“
They went on to say, “Reforming the estate tax, as well as her proposed reform of the short-term capital gains tax, in which we are also an outlier, are both helpful moves. Ultimately, Massachusetts will still need bolder action if we’re to mitigate some of the damage done by the passage of Question 1.”
Senate President Karen Spilka and House Speaker Ron Mariano remained tight-lipped Monday after a leadership meeting in regard to the Governor’s plan, saying they needed more time to go through the details of the package.
Both branches agreed on the last session to many tax relief measures but ultimately abandoned the plan when the state had to return nearly $3 billion under Chapter 62F.