A $742 Million state tax debt relief package was brought to light by the Healey-Driscoll administration, February 27, by Massachusetts Governor Maura T. Healey and Lieutenant Governor Kimberley Driscoll. It offers significant savings for families, renters, seniors, farmers, commuters, and more.
The proposal, which was unveiled at the Demakes Family YMCA in Lynn, also contains significant tax code changes that will bring Massachusetts into line with other states and improve its appeal as a place to live, work, and conduct business.
Gov. Maura Healey unveiled a comprehensive $742 million state tax debt relief package on Monday, saying it would save money for commuters, renters, seniors, farmers, and families. (Photo: https://apnews.com/)
Governor Healey said, “Everywhere we go, the Lieutenant Governor and I hear from people who are struggling to get by as the cost of living continues to skyrocket past them – the family watching their grocery bill grow each week, the young mother who wants to return to her dream job but can’t afford child care, the recent college graduate who can’t afford both his rent and student loan payments, the seniors who want to keep the home where they raised their family.
“For each of them, we filed this tax relief deal. Every step of this proposal is centered on affordability, competitiveness, and equity, providing aid to those in need while enacting changes that will help our wonderful state draw in and keep more businesses and residents.
In terms of business, science, technology, democracy, and civil rights, Massachusetts is a national leader in a variety of fields. But when it comes to cost, we’re not the best, said Lieutenant Governor Driscoll.
“If individuals can’t afford to live and work here, we won’t be able to keep our competitive advantage. In addition to making significant changes in areas where we are unique among other states, our state tax debt relief package will put more money in the hands of those who need it most.
According to Matthew J. Gorzkowicz, secretary of administration and finance, “the Healey-Driscoll Administration has made a values-driven decision to use the resources at our disposal to deliver economic state tax debt relief package to those who are struggling to make ends meet in the face of rising costs.
In addition to directly addressing many of our citizens’ most pressing needs, the Healey-Driscoll state tax debt relief package also positions the state for future economic development. It is progressive and financially responsible.
As a companion piece of legislation to the administration’s FY24 budget, this state tax debt relief package of tax changes for Fiscal Year 2024 (FY24) will be submitted on Wednesday (H.1). The plan is centered on providing immediate relief to families, seniors, and people who are struggling with high housing costs.
This includes the Healey Child and Family Tax Credit, a new benefit that will give families a $600 credit for each dependent, such as kids under the age of 13, people with disabilities, and senior dependents 65 years and older. The benefit is increased, the dependents cap is lifted, and two different tax credits—the Household Dependent Tax Credit and the Dependent Care Tax Credit—are combined.
At a cost to the state of $458 million, this state tax debt relief package would return money to the pockets of 700,000 taxpayers and their more than 1 million dependents, assisting families in meeting rising child- and senior-care costs and re-engaging people in the workforce to meet employer demand.
Also included in this proposal is a $4000 increase in the rental deduction, which is presently limited to 50% of rent up to $3,000 per year. This increase, which will cost $40 million, will assist 880,000 renters in reducing their high housing costs.
Additionally, the administration wants to increase the senior circuit breaker credit for low-income seniors with high property taxes or rent from $1,200 to $2,400. This will help seniors in 100,000 households stay in their homes.
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