BOSTON, Mass. (WWLP) – After well over a year of discussions, a tax relief proposal has finally been revealed.
Senate President Karen Spilka touted this plan as the largest, bipartisan, tax relief proposal in over a generation. The package is lawmakers’ attempt at making Massachusetts more affordable and competitive.
The conference committee filed the compromised package Tuesday. Legislative leaders say it will provide about $561-million in relief this fiscal year, and up to more than $1-billion in relief by 2027.
It increases the Child and Dependent Tax credit from $180 to $310 in 2023 and then up to $440 in 2024 and beyond. This is expected to affect more than 565,000 families.
It also doubles the Senior Circuit Breaker Tax Credit – from $1,200 to $2,400.
Additionally, it takes on the high cost of rent by increasing the cap on rental deductions from $3,000 to $4,000 – supporting approximately 800,000 renters.
“There are an awful lot of tax credits in here, ya know, that are going to go directly into the pocketbook of every tax payer in the Commonwealth,” remarked House Speaker Ron Mariano.
However, not everyone is thrilled about the plan. The Massachusetts Teachers Association put out a statement regarding business-friendly tax cuts, saying that they are “…givebacks to the ultra-wealthy who were upset when voters decided last fall that it was time for them to start paying their fair share in taxes.”
And on the other end of the spectrum, Massachusetts Fiscal Alliance said “…the modest tax relief would not stop the outward migration of taxpayers…or attract taxpayers to Massachusetts.”
Tax Relief was canceled last session due to Chapter 62F. This proposal would change how 62F is calculated and it would pay back rebates equitably as opposed to what a tax payer paid in. Both the Senate President and House Speaker said that this plan will make it to the Governor’s desk by the end of the week.