Gov. Healey today proposed several credits and deductions , including a new $600 credit for dependents that include children under 13 and people with disabilities or over 65 - and an increase in the rental deduction, from the current maximum of $3,000 to $4,000.
Healey says the credit, which would cost the state roughly $458 million a year, would help "families keep up with rising costs for child and senior care and bringing people back into the workforce to meet employer demand."
Her proposal also includes doubling the senior circuit breaker credit from $1,200 to $2,400 for low-income seniors with high property taxes or rent.
People not living week to week would see a reduction in the short-term capital gains tax from 12% to 5%. "This reform would have a gross revenue impact of $117 million in FY24, but would be budget-neutral due to excess capital gains not being used to support FY24 spending."
Also, her proposal would eliminate the state tax for estates worth up to $3 million, with a credit of up to $182,000.
In a statement, she said:
Everywhere we go, the Lieutenant Governor and I hear from people who are struggling to get by as the cost of living continues to skyrocket past them – the family watching their grocery bill grow each week, the young mom who wants to return to her dream job but can’t afford child care, the recent college graduate who can’t afford both his rent and student loan payments, the seniors who want to keep the home where they raised their family.
Other parts of her proposal include increasing state credits for companies with apprentice programs, provide a new credit for theaters with live performances, doubling the current deduction for lead-paint abatement, provide lower tax rates for hard cider and add bike-share memberships as a deductible expense.