To date, the state of Massachusetts is reportedly $4 billion or 14% above tax revenue projections this year. In April alone, collections were $2 billion over projected totals. In short, the state is awash in tax revenue but has yet to return any of it to taxpayers.
Earlier this legislation session Governor Baker filed a $700 million tax cut bill that has seemingly stalled. Lawmakers have, on several occasions, claimed they will address potential tax cuts later in the year, but no proposals have been made available. The Baker plan has many different components, but most important to small business is estate tax reforms. The tax cut plan will double the exemption to $2 billion from the current $1 billion and eliminate the estate tax cliff (only subjecting amounts over $2 million to the estate tax).
Both the House and Senate also refused to suspend the state’s 24 cent per gallon gas tax on multiple occasions. House leaders called the suspension “a gimmick” while Senate leadership falsely claimed it would impact the state’s bond rating. At this time, there are no pending plans to provide relief at the fuel pumps for Massachusetts motorists and small businesses.
NFIB will continue to support policies that returns money to the state’s hardworking taxpayers and remind legislators that both consumers and small businesses are in desperate need of tax relief