Local Tax Issues

Mass. House Speaker Unveils $654 Million Tax Cut Plan

Mass. House Speaker Unveils $654 Million Tax Cut Plan

Massachusetts Speaker of the House Ronald Mariano (D) has unveiled a $654 million tax cut plan for the state. 

The proposal, which would take effect in the 2024 fiscal year, is specifically geared toward helping senior citizens, renters, homeowners, and small business owners. If approved, Mariano's plan will also rewrite 62F, the 1986 ballot measure that sent about $3 billion back to taxpayers last year.

The tax cut proposal, which would increase to $1.1 billion in tax relief by the 2026 fiscal year, includes a number of caveats that are designed to make life in Massachusetts more affordable for everyday families.

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Credit: Getty Images

Per a WBUR report, Mariano said, “We wanted to have something that we felt impacted all segments of the economy, all segments of our constituency with some fairness and some equity."

He went on to specifically address 62F, which led to a fair amount of controversy among lawmakers last year. Mariano explained his stance, "That whole package is based on the success of the economy. It only gets triggered when the economy is very, very successful and we wanted everyone to share in that success.”

Some of the changes in the tentative tax cut plan include combining the state's existing child care expenses credit with the dependent member of household credit to create a single refundable $600 credit per dependent, doubling the senior circuit breaker tax credit from $1,200 to $2,400, increasing the home rental deduction cap from $3,000 to $4,000, and bolstering the earned income tax credit for qualifying families from 30% to 40% of the federal credit amount.

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Credit: Getty Images

In addition, the package would lower the short-term capital gains tax rate from 12% to 5% over a period of two years.

The bill would also make changes to the Massachusetts stabilization fund. 

What do you think about Speaker Mariano's tax cut proposal?

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Rebekah Barton

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