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Tax Relief in Massachusetts Kicked Down the Road… Again

Tax Relief in Massachusetts Kicked Down the Road… Again

August 1, 2023 Last Edit: June 5, 2025

The final budget for Massachusetts still includes two problematic sections for small businesses.

Tax Relief in Massachusetts Kicked Down the Road… Again

The Massachusetts legislature ended their official business on Monday and will begin their August recess that halts formal session and committee activity until the Fall. On July 31st before the break, they voted to approve the FY24 budget but once again, failed to address much-needed tax relief. The final budget still includes two problematic sections for small businesses that will:
  • Expand subsidized ConnectorCare health coverage up to 500% of the federal poverty level.
  • Modify the Paid Family and Medical Leave law by allowing workers to use existing PTO to top off wage replacement.
<<We need your voice! Lawmakers need to hear how you feel! TAKE ACTION HERE>> However, the failure to vote on tax reform continues to frustrate NFIB and other groups trying to ensure relief for small businesses and residents. Governor Charlie Baker proposed a tax relief package with estate tax reform (along with several other forms of tax relief) on January 26, 2022, but the Legislature took no action claiming the 62F refunds led to budgetary uncertainty. Governor Healey resumed efforts to pass tax relief in March of 2023 with a proposal very similar to Baker’s, also including estate tax reforms, but legislative leaders could not come to a consensus on their differing proposals before session wrapped for the month of August. Unfortunately, it is the states’ taxpayers that end up suffering while the Massachusetts House and Senate play a high stakes game of chicken to see whose tax plan will prevail. As residents of the Commonwealth flee Massachusetts following the passage of the income tax surcharge, as small businesses face worker shortages and prolonged inflation, lawmakers failed to advance the tax relief first promised in 2022. This failure to reach consensus will only result in Massachusetts becoming increasingly uncompetitive and even more unaffordable. <<You can help move the needle by telling Lawmakers how you feel! TAKE ACTION HERE>>
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