The Massachusetts House of Representatives voted in overwhelming support of the long-awaited $1 billion tax relief package that would put more money into renters’, families, seniors and caregivers’ wallets while slashing away at the estate and capital gains taxes.
Wednesday’s 155-1 vote puts the package one step closer to Gov. Maura Healey’s desk. The Democratic governor has been pushing for a progressive tax relief bill since the early days of her administration.
“It took a lot of collaboration and hard work, but I believe the results that are with me when we come out today are necessary for our commonwealth at this time,” Rep. Aaron Michlewitz, D-Suffolk, said. “Tax relief packages are taking on a show of compassion. It’s a gift of relief to those of our constituents that need it the most. It shows responsibility to today’s economy and government trust.”
The package’s largest item, which is worth roughly $165 million this yea,r and up to $307 million once it’s fully implemented, more than doubles the state’s child and dependent tax credit.
The package would increase the tax credit for every child, disabled adult or senior from $180 to $310 in 2023 and then up to $440 per dependent in 2024.
The package also doubles the maximum tax credit for senior citizens who rent or own homes in the Bay State from $1,200 to $2,400, an increase that is estimated to help 100,000 seniors who struggle with housing costs stay in their residences.
The deduction for renters would also increase from $3,000 to $4,000.
“We recognize the cost of living continues to rise, but relieving families makes a huge difference to middle-class families,” Micheal J. Soter, R-Worcester, said.
Despite, the package being praised for its competitiveness and the aid it provides for lower and middle-class families burdened by the housing crises and inflation rates, Rep. Mike Connolly, D-Middlesex, did not believe the bill went far enough.
Connolly, one of the chamber’s most vocal progressives, opposed the House’s original legislation in April, and cast the only ‘No’ vote.
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Although the House’s lone dissenter said the bill was improved through the conference committee process, he still believes it needed to include bigger investments into programs, services and infrastructure.
“I still cannot bring myself to support the total price tag of $1.1 billion once fully implemented,” Connolly said told his colleagues in floor remarks. “Not after we just spent a decade working to pass the Fair Share Amendment to gain desperately needed new revenue.”
Connolly, who represents Cambridge and Somerville, said the most pressing issues on the minds of his constituents are the housing crisis, the MBTA’s infrastructure issues and climate change – all of which he’s been vocal about.
The Senate is expected to vote on the package on Thursday.
