18

Page 18 THE SAUGUS ADVOCATE – FRIDAY, JANUARY 27, 2023 By Bob Katzen GET A FREE SUBSCRIPTION TO MASSTERLIST: Start off following the 2023 Legislature with something that you will read every weekday morning. There aren’t many things out there that are free and valuable. But MASSterlist is a rarity. Join more than 22,000 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 widely acclaimed and highly experienced writers Keith Regan and Matt Murphy who introduce each article in their own clever and inimitable 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: Gov. Maura Healey told Poltico Playbook last week that she supports some tax cuts including raising the estate/death tax threshold from $1 million to $2 million and expanding the senior circuit breaker tax credit. She also said she is reviewing a proposal to reduce the short-term capital gains rate from 12 percent to 5 percent. “Gov. Healey and Lt. Gov. Driscoll continue to have discussions with the Senate president and speaker and look forward to working together with the Legislature on efforts to make Massachusetts more aff ordable and support seniors, working families and small business owners during these challenging economic times,” Healey‘s press secretary Karissa Hand told Beacon Hill Roll Call. “The governor has previously supported raising the estate tax threshold and expanding the senior circuit breaker and rental deduction, and those remain under consideration.” Beacon Hill Roll Call asked Senate President Spilka and House Speaker Ron Mariano whether they supported these tax cuts. “Last session, the Senate president was proud to usher through the Senate a tax relief package that increased the Beacon Hill Roll Call By Bob Katzen child and dependent tax credit and earned income tax credit,” a spokesperson for Spilka told Beacon Hill Roll Call. “This package also provided additional relief to renters and seniors and made the state more competitive by addressing the estate tax. She looks forward to pursuing permanent progressive tax relief in this new session.” “There is a consensus revenue hearing on January 24th,” Max Ratner, spokesperson for House Speaker Ron Mariano told Beacon Hill Roll Call. “Each tax cut proposal will be reviewed through the legislative process after the hearing, and when the Legislature can better understand the upcoming economic environment.” The House last year defeated raising the estate/death tax threshold, expanding the senior circuit breaker tax credit and reducing the short-term capital gains rate. At that time, some opponents said they simply oppose the tax reductions. Others said that they voted against each of the three tax reductions, proposed as amendments to the state budget, because they are all included in a separate stand-alone piece of legislation fi led by Gov. Charlie Baker. They argued the amendments are premature and that the House should not act on this or any other tax reduction piecemeal here in the state budget but rather should wait until the Revenue Committee holds a public hearing on the governor’s package as a whole and sends it to the House for action. Baker’s tax package was held up and never reached the House. “While it is slightly encouraging to see Gov. Healey see the value in lowering the country’s most aggressive estate tax, this proposed adjustment is still just a tweak of a deeply flawed system,” said Paul Craney, a spokesperson for MassFiscal. “Massachusetts would still end up having the country’s third most aggressive estate tax. This tweak may bring some temporary relief, but it will not stop the outward migration of taxpayers due to Question 1 and the estate tax. If Gov. Healey supported the full repeal of the estate tax, which many blue states are doing, MassFiscal would lavish praise to the new governor for adopting a policy that puts us in line to compete with 38 other states which don’t have an estate tax.” Here is how local representatives voted on the proposals last year. Votes were almost 100 percent across party lines with the Republicans favoring the tax cuts and the Democrats opposing them. REDUCE ESTATE/DEATH TAX (H 4700) House 30-126, rejected an amendment that would exempt the first $2 million of 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 benefi ciary. Under current law, only the fi rst $1 million is exempt. Under the current $1 million threshold and under the proposed $2 million threshold, the tax on anything over the threshold is a graduated one that ranges from 0.8 percent to 16 percent. This tax applies to the entire estate value, not just the portion above the threshold. 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. Amendment supporters said that Massachusetts is one of only 12 states that have an estate/death tax and that the Bay State’s is the most aggressive of the 12. They said that in light of the high value of houses, with the average home price more than $500,000, the $1 million threshold of this “unfair and regressive” tax is too low and noted the federal tax exempts the fi rst $12 million. They noted that Massachusetts is losing many residents, who move to Florida Amendment opponents said to wait for Gov. Baker’s proposal. (A “Yes” vote is for exempting the fi rst $2 million of the value of a person’s estate from the state’s estate/death tax. A “No” vote is against exempting it.) ..Rep. Jessica Giannino ........ No .................................................. Rep. Donald Wong .................... Yes INCREASE TAX BREAK FOR SENIORS (H 4700) House 31-125, rejected an amendment that would increase by $1,005 (from $750 to $1,755) the maximum tax credit which seniors over 65 who qualify, can receive under the Senior Circuit Breaker Tax Credit Law. The law applies to seniors with homes valued at less than $884,000 and who earn $62,000 or less for a single individual who is not the head of a household; $78,000 for a head of household; and $93,000 for married couples fi ling a joint return. To qualify, if you are a homeowner, your property tax payments, together with half of your water and sewer expense, must exceed 10 percent of your total Massachusetts income for the tax year. If you are a renter, 25 percent of your annual Massachusetts rent must exceed 10 percent of your total Massachusetts income for the tax year. Amendment supporters said this will help seniors on fi xed incomes who are having a diffi cult time as infl ation and the cost of food and gas soar. Amendment opponents said to wait for Gov. Baker’s proposal. (A “Yes” vote is for the increased tax credit of $1,005. A “No” vote is against it.) ..Rep. Jessica Giannino ........ No .................................................. Rep. Donald Wong .................... Yes REDUCE CAPITAL GAINS TAX FROM 12 PERCENT TO 5 PERCENT (H 4700) House 29-127, rejected an amendment that would reduce the short-term capital gains tax from 12 percent to 5 percent. Amendment supporters said this will help investors in Massachusetts keep up with mounting infl ation. They asked why the capital gains or any tax imposed should be charged at a higher rate than earned income, especially considering the multi-billions in historic revenue surpluses that the state has.. and other states where this tax does not even exist. Amendment opponents said to wait for Gov. Baker’s proposal. (A “Yes” vote is for reducing the capital gains tax from 12 percent to 5 percent. A “No” vote is against the reduction.) ..Rep. Jessica Giannino ........ No .................................................. Rep. Donald Wong .................... Yes ALSO UP ON BEACON HILL THOUSANDS OF BILLS FILED FOR 2023-2024 SESSION – Friday, January 20 at 5 p.m. was the “soft deadline” for legislation to be fi led for consideration by the Legislature during the 2023-2024 legislative session. However, under House and Senate rules, bills fi led after January 20 can still be admitted to the Legislature following the deadline if the Legislature agrees to admit it by a four-fi fths vote of the members of the branch where the bill is introduced. Each legislative session, hundreds of bills are admitted as late-fi led bill CONFIDENTIALITY OF MENTAL HEALTH SERVICES (S 2684) – Before the 2022 session ended on January 3, the House approved and sent to the Senate legislation expanding the 2019 law that ensures confi dentiality for fi rst responders, including an active or retired law enforcement officer, police officer, state police trooper, sheriff or deputy sheriff , fi refi ghter and emergency medical personnel, who seek mental health services from a peer counselor. The bill, which would expand the current law to include state or municipal police criminalists, crime scene personnel, police dispatchers and 911 operators, died in the Senate. “The … committee supported [the bill],” said Rep. Carlos Gonzalez (D-Springfi eld), the chair of the Committee on Public Safety and Homeland Security which handled the proposal. “It is good policy. The folks serving our community should not worry about privacy issues or unfounded stigmatization for seeking mental health treatment. We owe them any support we can afford them—including the assurance of confidentiality when they seek help.” Rep. Ed Coppinger (D-Boston), the sponsor of the bill, did not respond to repeated requests from Beacon Hill Roll Call asking why he fi led the bill, how he feels about its death in the Senate and whether he will refi le it for the 2023-2024 session. BHRC | SEE PAGE 19

19 Publizr Home