Negotiators reached a deal two weeks ago that cuts the short-term capital gains tax from 12% to 8.5%, a business-backed move that has riled progressives who argue it gives a break to the wealthy. The compromise will cost the state $561 million in fiscal year 2023 and $1 billion a year starting in fiscal year 2027.
The bill also excludes estates valued up to $2 million from the estate tax by allowing for a uniform credit of $99,600.
Sure, there is a cute $50 and $120 increase in rent and dependent child tax credit and some minor benefits for low-income and disabled people (that will often go unused), but the point of this bill is entirely about appeasing to the very rich of this state.
This is a disturbing anti-poor and anti-middle class law fervently pushed by the governor and compromised with the legislature, who thankfully made the bill slightly less anti-poor and anti-middle class than the governor wanted. But still, another dark day for Massachusetts perpetuated by our conservative governor and state legislature.
So rich people get their capital gains tax cut and estate tax cut and seniors (also a wealthy demographic) get increased circuit breaker tax credits. Poor people get higher renters tax credits. People with kids get more credits. Commuters on public transit get to write off more of their bills. And the rest of us who don’t have kids, have no public transit to our jobs, and have a mortgage get nothing.
Remember when the renter’s tax deduction was justified by there being a large deduction in federal taxes by homeowners? After Trump, I don’t get that write off anymore and neither do most middle class people. But the renters still get theirs. We just keep getting screwed.
You already have it pretty easy guy.
Yes, it’s the homeowners who keep getting screwed.