Massachusetts Tax Cut
Massachusetts will be witnessing a tax cut within the upcoming fiscal year.
Governor Maura Healey signed a tax relief bill aimed at cutting over 550 million in taxes this year and by 2027, when the bill will fully go into effect, an estimated 1 billion annually.
The bill includes an expanded child tax credit, doubling of the threshold for the estate tax from one to two million dollars, increasing the Earned Income Tax Credit, and cutting the short term capital gains tax for business. The cuts are also designed to make Massachusetts more competitive with other states taxes on business.
The relief bill is a compromise years in the making between the State House and Senate; former governor Charlie Baker attempted to get a different version of the bill passed, ultimately coming up short in support. The tax cut is the first in over 20 years, with various governors attempting and failing over the years to cut taxes.
Governor Maura Healey had made it a campaign promise to cut taxes, which majority of voters support- in a poll by Priorities for Progressives 75% of respondents said they would like excess tax revenue to be utilized for tax cuts rather than increased funding for programs. By April 2024, the tax cuts will be in effect and will be noticeable come time for filing taxes.
