tax fairness

Extremist Republicans in Congress Just Voted to Cut Health Care to Fund Tax Cuts for the Rich. Here’s How to Push Back in MA.

Last night, Republicans in the US House voted to advance a budget outline that entails steep cuts to Medicaid, the Supplemental Nutrition Assistance Program, and other essential programs in order to fund tax cuts for billionaires and large corporations.

Their priorities are clear. And so should ours in Massachusetts.

The federal budget fight isn’t over. Every Democrat present voted NO yesterday (that includes MA’s 9-member delegation), and there is still time to block harmful cuts. But MA needs to ensure that, regardless of what Congressional Republicans do and regardless of Elon Musk’s illegal federal funding freezes, we are not cutting essential services. We need to do more to meet the needs of all, not less.

Unfortunately, Governor Healey’s proposed budget would halve the number of mental health case workers, limiting access to essential care. Thankfully, she put a pause on her plans to close two of the state’s mental health hospitals, but more funding will be needed.

And we know how to raise such funds. It’s not by giving tax cuts to rich people and large corporations as our Legislature did two years ago. It’s by ensuring that large corporations are paying their fair share.

That’s why we’re supporting Raise Up Mass’s Corporate Fair Share campaign to ensure that billionaire global corporations like Apple, Google, and Walmart pay their fair share and can’t get away with tax-dodging antics.

Can you email your legislator in support of this important legislation?

Email Your State Legislators

Did you know that Massachusetts taxes a smaller share of offshored corporate income than New Hampshire? An Act Combating Offshore Tax Avoidance (HD.3390/SD.1684) would fix that, bringing us in line with the federal government and other states and raising hundreds of millions of dollars in new annual revenues.

MA needs to combat offshore tax dodging and make the world’s most profitable mega-corporations pay their fair share in state taxes, instead of cutting public services like healthcare and education that we all rely upon.

revenue tax fairness

LTE: High rents have young people putting Boston in the rearview mirror

Jonathan Cohn, “High rents have young people putting Boston in the rearview mirror” (letter), Boston Globe, March 15, 2024.

Last year, the Greater Boston Chamber of Commerce said that Massachusetts needed to cut taxes on businesses and the rich because otherwise people would flee the state. They won a generous tax package, but cutting the tax on the estates of multimillionaires and the tax on day traders and speculators won’t change the minds of young people about where to live.

Indeed, the chamber’s own new study (“ ‘Alarming’: 1 in 4 young people eye leaving Boston,” Business, March 13) shows that one of the main reasons young people consider moving away is that rent is far too high. It’s the fourth-highest in the country.

Zoning reforms that the chamber supports can make a small dent, but we also need to invest more money in affordable housing and to strengthen tenant protections. Boston has proposals to do both, with home rule petitions to create a real estate transfer fee to fund affordable housing and stabilize rents. Other municipalities do so as well, and the governor’s housing bond bill has language around the former. I’d welcome the chamber’s support for such clear solutions to an urgent problem facing the region.

Jonathan Cohn

Policy director

Progressive Massachusetts

housing tax fairness

PM in the News: “Midyear budget shortfall raises questions about Healey’s tax cuts”

“Midyear budget shortfall raises questions about Healey’s tax cuts,” WGBH, January 12, 2024.

Have Gov. Maura Healey’s tax cuts backfired?

That’s the argument coming from some on the left as Healey makes hundreds of millions of dollars in midyear budget cuts, just a few months after she signed off on the state’s first big tax-break package in two decades. But not everyone thinks the state’s current fiscal duress means the cuts were a bad idea.

Adam Reilly is joined by Mass. Taxpayers Foundation president Doug Howgate and Progressive Mass policy director Jonathan Cohn, who discuss the impact of the cuts and what they might portend for the future of budget-making in the state.

budget revenue tax fairness

Op-Ed: A New Year’s resolution: Make Mass. affordable

Jonathan Cohn, “A New Year’s resolution: Make Mass. affordable,” CommonWealth, December 28, 2023.

Throughout 2023, we constantly heard elected officials talk about the need for tax cuts to make Massachusetts more “competitive,” pushing a debunked myth that we were about to see an exodus of the well-off due to the Fair Share Amendment and the overall tax landscape. The risk we really face is that our graduates won’t be able to stay here, that young couples won’t be able to make a family here, and that working people will be displaced from one neighborhood to the next before being driven out of the state entirely. All of this is avoidable with good policy.

So let’s hope – and pressure – our elected officials to embrace those policies. And to not give up on a New Year’s Resolution too soon.

Common Start higher ed housing inequality tax fairness

PM in the News: “New Tax Cuts Prompt Debates about Affordability”

Sarah Robertson, “New Tax Cuts Prompt Debates about Affordability,” The Shoestring, November 21, 2023.

The child and dependent credit, described by Healey as the “most generous” in the country, was the largest single piece of the bill, representing $307 million in cuts. It is expected to provide around 565,000 families with a $440 annual tax credit per dependent, who can include children under 12 years old, seniors, and people with disabilities.

“I’m sure they can use it and welcome it, but we’re talking about a $440 tax credit like it’s somehow revolutionary for people when that’s not making a dent,” said Jonathan Cohn, policy director for Progressive Mass. “This state could be doing so much more by pooling money and investing in infrastructure to support parents rather than just giving people a check.”

….

The bill also raised the threshold at which the estate tax kicks in from inheritances of $1 million to $2 million.

“They’re throwing money at people,” said Cohn. “Many people in this state will die in debt, and the idea of putting that much focus on cutting the taxes on multi-million dollar estates is crazy.”

Cohn said he was disappointed in the Healey administration’s “misleading” characterization of the cuts as a way to address affordability. “The cost of living is at a crisis point for so many people,” he said. “The tax bill does not meaningfully address that.”

tax fairness

PM in the News: “We Can’t Tax-Cut Our Way to an Affordable Commonwealth”

Jonathan Cohn, “We Can’t Tax-Cut Our Way to an Affordable Commonwealth,” Fenway News, November 2023.

If Massachusetts wants to be an affordable state—attractive for people to move to, a place where people can thrive—that’s where our focus should be. And I hope that’s where our Legislature turns its attention for the rest of the session—and that legislators don’t have the audacity to say they don’t have the money to help make living here more affordable.

tax fairness

PM in the News: “We Don’t Have the Money” Doesn’t Cut It

Chris Lisinski, “Healey, not Baker, gets to sign big tax relief law,” State House News Service, October 4, 2023.

“Voices on the left were also less enthused about the final product. The Progressive Massachusetts group contrasted the $1 billion in relief with the roughly similar amount of revenue the state expects to generate this year from a new surtax on high earners, revenue from which will be earmarked for education and transportation investments.

“It is simply not acceptable for legislators to say ‘We don’t have the money’ when it comes to meeting basic needs, when they are willing to spend hundreds of millions of dollars on unnecessary and regressive tax cuts for the rich and large corporations,” the group said in an unsigned statement. “Our commonwealth has the resources we need to solve the great challenges we face; the question is whether our elected officials have the will to do so.” “

tax fairness

What Just Happened with the Tax Bill

Last year, voters showed up in November and sent a clear message by passing the Fair Share Amendment: we need greater investment in public education and transportation in the Commonwealth, and the wealthy should pay their fair share.

Because of the new revenue raised by the Fair Share Amendment, more kids will have access to pre-K, students will have access to free school meals, our schools will be greener, and fewer graduates of our public colleges and universities will be burdened with debt. Even more, we will see better hours for our Regional Transit Authorities, better upkeep for roads and bridges, and much-needed additional funding for the MBTA. All of this just in the first year of new revenue.

And that is why it is so disappointing to see the Governor and Legislature focus so much energy this year on cutting taxes, particularly for the ultra-rich and large corporations. Almost 40% of the tax package — passed nearly unanimously by the Legislature and supported by the Governor — consisted of regressive tax giveaways, disproportionately benefiting the Commonwealth’s richest residents, corporations, and estates. Multi-million-dollar estates will be getting a tax break of almost $100,000 each. Day traders, speculators, and multinational corporations also come out well ahead.

More progressive components of the bill, such as the child tax credit ($200 per child) and renters deduction (a paltry $50), can help families struggling to make ends meet but miss the mark when it comes to actually addressing the problems of affordability in Massachusetts. We need to be investing in our child care infrastructure and in preserving and expanding affordable housing, and the regressive tax cuts in the bill siphon away vital funding for doing so. That said, the fact that the Legislature closed a loophole that could have enabled tax avoidance of the Fair Share tax is both welcome and necessary.

It is simply not acceptable for legislators to say “We don’t have the money” when it comes to meeting basic needs, when they are willing to spend hundreds of millions of dollars on unnecessary and regressive tax cuts for the rich and large corporations.

Our commonwealth has the resources we need to solve the great challenges we face; the question is whether our elected officials have the will to do so.

tax fairness

Here’s What Fair Share Is Delivering in its First Year

Last year, voters like you showed up in November to vote for the Fair Share Amendment because you understood the importance of a fairer tax code and greater investment in public education and transportation. And you didn’t just show up to vote — you canvassed, phone-banked, text-banked, tabled, spoke to neighbors, and much more.

Now that Governor Maura Healey has signed the FY 2024 budget, we can see how much the Fair Share Amendment has delivered in its first year. Let’s take a look.

$229 million for public colleges and universities
$224 million for K-12 public schools
$70.5 million for early education and care
$175 million for roads and bridges
$95.7 million for regional public transit
$205.8 million for the MBTA

✅$229 million for public colleges and universities ✅$224 million for K-12 public schools ✅ $70.5 million for early education and care ✅$175 million for roads and bridges ✅$95.7 million for regional public transit ✅$205.8 million for the MBTA

For early education and K-12 public education, that means….

For early education and care, that means $25 million for reducing the early education and care waitlist, $15 million for additional early education and care slots, $25 million for early educator and pay benefits, $5.5 million for expansion of pre-K. For K-12, public schools, that means....$150 million for school building projects and green schools, $69 million for universal school meals, $5 million for early college programs

For public higher education, that means….

For roads, bridges, and regional transit, that means….

For roads and bridges, that means $100 million for municipal roads and bridges, $50 million for state bridges, and $25 million for federal matching funds. For regional transit, that means $90 million for regional transit agencies(funding fare-free pilot program, expanded service hours, weekend services, and route expansions) and $5.7 million for ferry service.

For the MBTA, that means…

(See a written version of this information here.)

But Wait…The Fight Continues

The new revenue raised by the Fair Share Amendment could be at risk this fall if the Legislature passes major tax giveaways for the ultra-rich and large corporations.

Massachusetts needs to prioritize spending on what will make our state truly affordable, equitable, and competitive: programs that support working people and ensure a labor force adequate to our economy’s needs. That, in turn, requires that families have affordable housing, childcare, educational opportunities, and reliable transportation to make it possible for them to work, gain skills, and earn a good living.

We need to act NOW to protect the Fair Share Amendment from tax avoidance, and ensure that Massachusetts can invest more in our schools, colleges, roads, bridges, and public transit systems. At the same time, we need to make sure our legislators don’t give away billions of dollars to the ultra-rich.

Can you write to your state legislators to thank them for the budget victories and urge them to protect Fair Share revenue?

Fair Share public education public transit revenue tax fairness

Good News in the State Budget — and Next Steps

On Monday (a month past the deadline), the MA House and Senate came to an agreement on the budget for the next fiscal year.

We wanted to highlight some of the important victories in it:

Tuition equity for all students regardless of immigration status
Permanent funding for universal school meals
No Cost Calls, keeping incarcerated individuals and their families connected

FY 2024 budget victories from the surrounding text (Graduation cap, school meal, mother with child on phone)

These victories came because of people like you reaching out to your legislators (and then reaching out to friends to do so too) and keeping the momentum going.

The budget also contained transformative new investments because of the Fair Share amendment, which you voted for and organized for last year.

Raise Up MA @RaiseUpMA · Jul 31 With the state budget released last night, voters can now see exactly how the first billion dollars from the #FairShare Amendment will be spent. Legislators are delivering on the promise of the Fair Share Amendment by making new investments in transportation & public education. Raise Up MA @RaiseUpMA This year, Fair Share funding will help: 🚃Upgrade the MBTA 👩‍🎓Make public college more affordable 🌉Repair bridges 🍱Provide free school meals for all students 🏫Build green schools 🚍Expand local bus service 🚸Increase access to early education ⛴️Support new ferry service

But the fight is not over yet…..

Call Gov. Healey to urge her to sign the budget

The budget doesn’t become law until Gov. Healey signs it.

Can you call her office at (617) 725-4005 to urge her to support Tuition Equity, Permanent Universal School Meals, and No Cost Calls without changes?

The call can be short and sweet: it just needs that simple message.

Urge Your State Legislators to Reject Tax Cuts for the Ultra-Rich and Large Corporations

Although the Legislature came to an agreement on the budget, they are still in negotiations about a tax reform package.

Can you write to your state legislators to thank them for the budget victories and urge them to protect Fair Share revenue?

budget Fair Share no cost calls school meals tax fairness tuition equity

But Wait…The Fight Continues

Call Gov. Healey to urge her to sign the budget

Urge Your State Legislators to Reject Tax Cuts for the Ultra-Rich and Large Corporations

Email Signup Form

Sign up to our newsletter!