Earlier this year, Governor Charlie Baker proposed a $700 million tax cut plan with significant reforms to the Massachusetts estate tax. That legislation is currently languishing before the Legislature with no indication as to whether relief is on the horizon for taxpayers in the Commonwealth. The tax cut bill was filed in the hopes of returning money to Massachusetts residents and businesses during a period where the state not only received billions of dollars in federal aid, but also experienced a windfall of surplus tax revenue.
The bill included significant estate tax reforms set to double the exemption from $1 million to $2 million and eliminate the fiscal cliff. Right now, Massachusetts has the lowest estate tax exemption in the nation (tied with Oregon). When asked at a news conference why the Governor’s tax cuts were not included in the FY23 House budget, House Speaker Ron Mariano remarked that he “felt that they weren’t necessary.”
Both the House and Senate also rejected several attempts to suspend the state’s 24 cent per gallon gas tax. Lawmakers originally claimed a suspension of the tax would threaten the state’s bond rating, but that claim was later debunked by bond ratings firms. While Massachusetts elected officials now assert no savings will actually be passed along to consumers at the pump, states like Maryland, Georgia, and our neighbors in Connecticut have all successfully reduced fuel costs for commuters, small businesses, and working families by temporarily ending their fuel taxes.
NFIB will continue to monitor this evolving situation but asks that you contact your elected officials and urge them to provide tax relief in Massachusetts. Please follow the links below: