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Healey proposes some tax relief

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.

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Healey is ignoring the T's issuesjust like Baker did. Better to propose tax cuts than fund the MBTA.

Voting closed 27

I'm struggling to reconcile Gov Healey's above statement with what is actually included here. Both the higher rental deductible and childcare credit are appreciated, but they seem like a scant giveaway to the majority of the tax base, versus the bigger breaks given to short term capital gains and estates.

Given that seemingly every housing unit that isn't an active war zone, a superfund site, or a flaming hellmouth is about a million bucks these days, I can understand raising the estate exemption, but I think 2 mil would have been much more reasonable. As for short term capital gains, it's still income, so I can't get unreasonably angry at it being taxed at the same rate, but it does benefit those with the money to play around with short term trades. I doubt that's a whole lot of us right now.

The bike/transit pass deductible is a nice get though. I hope it will incentivize more people to give it a go for their commute. Plus, the more bike and transit riders we get, the more wear-and-tear we can save on our streets, hopefully prolonging their lives.

Voting closed 26

No and it is very similar to what Baker proposed last year.

Voting closed 5