Pioneer landscape11/24/2023 ![]() It’s been more than twenty years since significant tax relief was passed by the Legislature and signed into law by the Governor,” the group wrote. “Assessing Massachusetts tax policy over a longer time horizon makes the case for action even more apparent. MTF pointed out that tax relief has now won approval in each branch twice in the past two years without becoming law. The House and Senate each advanced their own versions that overlap in many ways with bills that won initial approval last year before Democrats backed away from the promised relief. Healey made tax relief a central topic of her winning campaign, and she proposed a package similar to one Baker offered. The state’s tax revenue haul slowed last year after a stretch of record growth, leaving a gap of $39 million to $177 million that the Legislature and Healey administration will need to close, and collections through the first two months of fiscal 2024 are lagging slightly below expectations. Maura Healey signed last month totals about $56 billion, nearly $13 billion more than the fiscal year 2019 budget former Gov. “As a result of this change in collection trends, the state has collected $9.7 billion more in tax revenues than would otherwise be expected, and that’s before accounting for any additional revenue brought in by the income surtax.”Īt the same time that tax collections have grown, Beacon Hill has pumped more money into major spending initiatives. Since the pandemic, that rate of growth has effectively doubled to 9.7 percent,” MTF wrote. In the five years prior to the pandemic (FY 2014 to FY 2019), tax collections grew at a rate of 4.9 percent. ![]() “In fact, even though tax collections declined between FY 2022 and FY 2023, total tax collections remain billions ahead of pre-pandemic trends. The Massachusetts Taxpayers Foundation, a business-backed group that has long urged lawmakers to reform the state’s tax code, said in a report published Tuesday that the state can absorb the roughly $580 million lawmakers already set aside for relief despite a recent drop in revenues. BOSTON - Lawmakers have given no indication they are any closer to compromise on the tax relief they promised more than a year ago, and they continue to be buffeted by competing affordability crosswinds.īeacon Hill received another pair of pitches in the past week, one arguing that slashing taxes is “affordable and sensible” in the current fiscal environment and the other instead urging legislators to be “cautious” amid a series of looming costs.
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