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Page 20 THE REVERE ADVOCATE – FRIDAY, JUNE 23, 2023 By Bob Katzen If you have any questions about this week’s report, e-mail us at bob@beaconhillrollcall.com or call us at (617) 720-1562 GET A FREE SUBSCRIPTION TO MASSTERLIST – Join more than 25,000 people, from movers and shakers to political junkies and interested citizens, who start their weekday morning with MASSterList—the popular newsletter that chronicles news and informed analysis about what’s going on up on Beacon Hill, in Massachusetts politics, policy, media and infl uence. The stories are drawn from major news organizations as well as specialized publications selected by MASSterlist’s editor, Erin Tiernan, with help from Matt Murphy. Both are pros, with a wealth of experience, who introduce each article in their own clever way. MASSterlist will be e-mailed to you FREE every Monday through Friday morning and will give you a leg up on what’s happening in the blood sport of Bay State politics. For more information and to get your free subscription, go to: https://lp.constantcontactpages. com/su/aPTLucK THE HOUSE AND SENATE: Beacon Hill Roll Call records local senators’ votes on roll calls from the week of June 12-16. There were no roll calls in the House last week. SENATE APPROVES $590 MILLION TAX REDUCTION PACKAGE (S 2397) Senate 39-0, approved a package that provides $590 million in tax relief. The House has already approved its own tax reduction package and a House-Senate conference committee will hammer out a compromise version. Key provisions of the Senate package include raising the Earned Income Tax Credit from 30 percent of the federal credit to 40 percent of the federal credit; raising the cap on the rental deduction from $3,000 to $4,000;increasing from $1 million to $2 million the value of a person’s estate that is exempt from the the state’s estate/death tax that a person is required to pay following their death before distribution to any benefi ciary; increasing from $1,200 to $2,400 the maximum senior circuit breaker credit; increasing the statewide cap for the Dairy Tax credit from $6 million to $8 million; and doubling the credit for lead paint abatement to $3,000 for full abatement and $1,000 for partial abatement. The package also provides that student loan payment assistance off ered by employers will not be treated as a taxable salary and gives cities and towns the option to adopt a local property tax exemption for real estate that is rented to a person below a certain area-dependent income level. “As I have said from the outset, tax relief should go to the workers, families and elderly residents of the commonwealth who need it most,” said Senate President Karen Spilka (D-Ashland). “Massachusetts doesn’t need just any tax relief, we need permanent, progressive, smart and sustainable tax relief. Too many families have been caught between the rising costs of healthcare, housing, education and basic goods.” “Consistent with the views of the Senate membership, our Senate tax package is forward-looking, fi scally sustainable, comprehensive and progressive,” said Sen. Mike Rodrigues (D-Westport), chair of the Senate Ways and Means Committee. “It puts money back into the pockets of our residents, providing permanent tax cuts for low-income workers, families, renters, seniors and persons with disabilities, while focusing on the largest issue that is undercutting our commonwealth’s overall competitiveness – which is the aff ordability and availability of housing.” “Working families aren’t leaving the commonwealth because of taxes on day-traders,” said Sen. Susan Moran (D-Falmouth), Senate chair of the Committee on Revenue. “They are leaving because they can’t fi nd housing they can aff ord. This package aimed at growing housing will also grow our workforce and the commonwealth’s competitiveness.” (A “Yes” vote is for the $590 million tax reduction package.) Sen. Lydia Edwards Yes 25 PERCENT MUST BE AFFORDABLE HOUSING (S 2397) Senate 9-30, rejected an amendment to a section of the bill that funds the Housing Development Incentive Program (HDIP). The amendment would require that HDIP projects must make 25 percent of their units aff ordable. HDIP, according to its state website, “provides Gateway Cities with a tool to develop market rate housing while increasing residential growth, expanding diversity of housing stock, supporting economic development and promoting neighborhood stabilization in designated areas.” “This amendment ensures that HDIP leads to construction of units for everyone,” said amendment sponsor Sen. Jamie Eldridge (DActon). “It ensures that HDIP is not exclusively used for high-rent luxury apartments. And this is not a theoretical concern. An excellent report from the Massachusetts Law Reform Institute explains that [while] HDIP is titled a market rate credit, the rents usually exceed prevailing rents and prices, some by 50 percent to 70 percent with no limit on future increases. Rents in many HDIP subsidized developments are excessively high cost as described in current apartment advertisements.” “The HDIP program is the primary tool for Gateway Cities to expand housing stock, revitalize downtowns and attract and retain a middle class in cities where low rents do not support new housing development projects,” said Sen. John Cronin (D-Fitchburg) who opposed the amendment. “While aff ordability requirements may work in some communities, forcing a one-sizefi ts-all requirement on others will diminish the program’s utility by disincentivizing development— completely contrary to the objective of the program. The Senate got this vote right.” (A “Yes” vote is for the amendment requiring that 25 percent of the units be aff ordable. A “No” vote is against the amendment.) Sen. Lydia Edwards Yes FILE TAXES JOINTLY (S 2387) Senate 33-5, approved an amendment that would require Massachusetts couples who file income tax returns jointly at the federal level do the same at the state level. Supporters said this amendment will close a loophole that allows some married couples to fi le individually – an action that could be used to minimize or avoid the person’s state tax obligations under the newly approved 4 percent surtax which is in addition to the current fl at 5 percent one, on taxpayers’ earnings of more than $1 million annually. Opponents said if fi lers are forced to fi le jointly at the state level, the 4 percent surtax will apply to many more fi lers which is not what the voters approved on the November 2022 ballot question imposing the 4 percent surtax. (A “Yes” vote is for the amendment requiring joint fi ling. A “No” vote is against the amendment.) Sen. Lydia Edwards Yes REDUCE SHORT TERM CAPITAL GAINS TAX (S 2397) Senate 5-32, rejected an amendment that would reduce the shortterm capital gains tax from 12 percent to 5 percent. Amendment supporters said that there are 26 states that currently tax short-term capital gains at a rate of 5 percent or lower, including all of our surrounding states. They noted that both the House and the governor favor the reduction. They asked why the capital gains tax or any tax imposed should be charged at a higher rate than earned income. Sen. Bruce Tarr (R-Gloucester), the sponsor of the amendment, did not respond to repeated requests by Beacon Hill Roll Call asking him to comment on his amendment. Amendment opponents said the state cannot aff ord the $117 million loss in revenue that this tax cut would cost this year. They argued the cut would do nothing to help the costs of housing and living. Senate Ways and Means Chair Sen. Mike Rodrigues (D-Westport) did not respond to repeated requests by Beacon Hill Roll Call asking him to comment on his opposition to the amendment. (A “Yes” vote is for the reduction to 5 percent. A “No” vote is against the reduction.) Sen. Lydia Edwards No INCREASE ESTATE/DEATH TAX EXEMPTION (S 2397) Senate 5-33, rejected an amendment that would increase from $1 million to $5 million the amount of money that is exempt from the value of a person’s estate from the state’s estate/death tax that a person is required to pay following their death before distribution to any beneficiary. The increase to $5 million would be implemented over ten years. Most Republicans are against any such tax and coined the name “death tax” to imply that the government taxes you even after you die. Most Democrats support the tax and call it an “estate tax” to imply that this tax is only paid by the wealthy. “You work hard and earn money, it’s taxed,” said amendment sponsor Sen. Ryan Fattman (R-Sutton). “You save and invest your money, it’s taxed. You spend your money, it’s taxed. You own property, it’s taxed. Only in Massachusetts and Oregon, after working your whole life, do you get taxed at the highest rate in the country after your death. My amendment sought to shed the ‘Taxachusetts’ mentality … Our residents should want to spend their golden years in Massachusetts, but our tax policy makes it unaffordable to die in Massachusetts. Middle and upper-middle-class families should not have to worry about the government taking what they have worked so hard for future generations of their family.” Amendment opponents said the proposed bill already raises the exemption from $1 million to $2 million and noted that will cost $185 million. They said a hike to $5 million is excessive and unaff ordable and will cost hundreds of millions of dollars more. They noted that lowering the estate tax is not the only way to help seniors and their families and noted there are many other initiatives that help seniors. Senate Ways and Means Chair Sen. Mike Rodrigues (D-Westport) did not respond to repeated requests by Beacon Hill Roll Call asking him to comment on his opposition to the amendment. (A “Yes” vote is for increasing the exemption to $5 million. A “No” vote is against raising it.) Sen. Lydia Edwards No ALSO UP ON BEACON HILL DON’T MISS THIS “MEET THE MEDIA” EVENT - Join MASSterList and the State House News Service for a discussion with leading local journalists about the Massachusetts political and policy landscape at 8:30 a.m. Thursday, June 29 at Massachusetts Continuing Legal Education (MCLE) at 10 Winter Place (Downtown Crossing) in Boston. Topics will include competitive pressures, transparency in state and local government and developing relationships with government sources and communications professionals. Tickets/more info: https://massterlist.com/meetthe-media/ The All-Star Panel includes: Matt Stout, Reporter, the Boston Globe Azita Ghahramani, Senior Editor for Politics, WGBH News James “Jimmy” Hills, host, Java With Jimmy Jennifer Smith, Staff Reporter, Commonwealth Magazine Steph Solis, Reporter, Axios Boston Colin Young, Reporter, State House News Service Moderator: Adam Reilly, Reporter, WGBH News SALES TAX HOLIDAY ON AUGUST 12 AND 13 - The House and Senate set Saturday, August 12 and Sunday, August 13 as this year’s Sales Tax Holiday. This will allow consumers to buy most products that cost under $2,500 on those two days without paying the state’s 6.25 percent sales tax. This annual sales-taxfree weekend was made permanent in 2018 and gives the Legislature the authority to set the dates by June 15 each year. Supporters of the holiday say it has been in eff ect for many years, would boost retail sales and noted that consumers would save millions of dollars. They argue that the state’s sales tax revenue loss would be off set by increased revenue from the meals and gas tax revenue generated by shoppers on those two days. Opponents of the bill say the state cannot aff ord the up to $30 million estimated revenue loss and argued the holiday actually generates little additional revenue for stores because consumers typically buy the products even without the tax-free days. They say that the Legislature should be looking at broader, deeper tax relief for individuals and businesses and not a tiny taxfree holiday. PROHIBIT REQUIRING PROOF OF COVID-19 VACCINATION (H 734) – The Emergency Preparedness and Management Committee held a hearing on legislation that would prohibit the state, cities and towns from requiring proof of vaccination against COVID-19 as a condition of entry to any public buildings including state and local government buildings, all public and private schools and colleges and private businesses. BEACON | SEE Page 22

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