In addition to the budget plan scheme to impose a healthcare tax on small businesses, there are a variety of other tax proposals on the table in Boston this session. Here’s a look at them.
Income Tax Freeze
House Bill 1618, sponsored by Rep. Denise Provost, would freeze the state income tax at its current rate of 5.1 percent. However, this would go back on a promise to Massachusetts taxpayers. Currently, if state revenue meets certain targets, the income tax rate is scheduled to decrease to 5.05 percent on Jan. 1, 2017. This is part of a planned gradual drop to 5 percent.
The good news is that, according to the Boston Herald editorial team, the proposal isn’t likely to find support with the House’s legislative leaders, whose budget has avoided broad-based tax hikes.
Gas Tax
Another bill proposes to allow cities and towns to establish their own payroll, sales, property, or vehicle taxes to fund transportation projects. Voters in the locality would have to approve the taxes, and they would expire after 30 years. Under the measure, there would be a cap on how much the taxes could be increased, and the revenue would be mandated to be spent on transportation.
Sales Tax
At their upcoming spring meeting this month, the Retailers Association of Massachusetts is planning to discuss whether to propose a 2018 ballot question about lowering the sales tax. According to a recently public opinion poll the group conducted, nearly 80 percent of respondents would be in favor of cutting the sales tax rate from 6.25 percent to between 4 and 4.5 percent.
