MA House Pushes Regressive Tax Cuts

Last November, voters sent a message by voting for the Fair Share Amendment: the rich should pay their fair share so that we can invest in public education and infrastructure. For years, the Legislature has used the line “We don’t have the money” to justify inaction and underinvestment; we got them the money.

But, yesterday, the House, in unveiling their tax package, said that they plan to give money right back to the rich and large corporations.

Almost half of the cost of their tax proposal comes from the three regressive tax cuts:

  • A $231 million cut to the estate tax designed to disproportionately benefit the wealthiest estates
  • A $130 million cut for day traders and speculators by cutting the short-term capital gains tax
  • A $79 million tax cut for the state’s largest corporations through what is called “single sales factor apportionment”

Think of all that we could do with $440 million if instead we invested it in our public transit systems, in education, in child care, in climate resilience, in affordable housing, or in health care. Indeed, tackling our housing crisis should be the #1 priority if legislators actually cared about the goals of “affordability” and “competitiveness.” Indeed, even the less regressive parts of the tax package could go further if invested in a robust social programs. By proposing such regressive tax cuts, the House is disrespecting the will of the voters, and they are setting Massachusetts up for brutal cuts when the next recession hits.

Disappointed too? Let your state representative know.

You can also let your state representative know (on phone or in person tomorrow) that you want them to support two amendments filed by Rep. Mike Connolly:

  • #5 (Establishing a Tiered Corporate Minimum Tax), which ensures that large corporations pay their fair share [When corporations, through accounting wizardry, secure a $0 tax liability, the minimum tax they have to pay is $456. That tax should be based on the size of the corporation.]
  • #11 (Maintaining Some Degree of Short-Term Capital Gains Equity) to blunt the cut to the short-term capital gains tax

PM in the News: Globe on “Maura in the Middle”

Joan Vennochi, “When it comes to issues facing the state, it’s Maura ‘in the middle’ Healey,” Boston Globe, April 10, 2023.

“To progressive Democrats, the answer is not enough. Pointing out that Healey’s tax reform proposal is basically the same as Baker’s, Jonathan Cohn, policy director of Progressive Massachusetts, said, “Her instinct has been to give that money back, weakening our state’s ability to deliver on the promise of investment.” On housing and transit, he added, “I think we need to see more from her administration about what their major goals are and how they would track their own success. There isn’t enough communicated urgency about what is needed for the affordability crisis and the crisis of the MBTA.” Cohn also flagged Healey for a “wait-and-see” attitude on zoning changes that are aimed at increasing affordable housing.””