Last November, voters sent a message by voting for the Fair Share Amendment: the rich should pay their fair share so that we can invest in public education and infrastructure. For years, the Legislature has used the line “We don’t have the money” to justify inaction and underinvestment; we got them the money.
But, yesterday, the House, in unveiling their tax package, said that they plan to give money right back to the rich and large corporations.
Almost half of the cost of their tax proposal comes from the three regressive tax cuts:
- A $231 million cut to the estate tax designed to disproportionately benefit the wealthiest estates
- A $130 million cut for day traders and speculators by cutting the short-term capital gains tax
- A $79 million tax cut for the state’s largest corporations through what is called “single sales factor apportionment”
Think of all that we could do with $440 million if instead we invested it in our public transit systems, in education, in child care, in climate resilience, in affordable housing, or in health care. Indeed, tackling our housing crisis should be the #1 priority if legislators actually cared about the goals of “affordability” and “competitiveness.” Indeed, even the less regressive parts of the tax package could go further if invested in a robust social programs. By proposing such regressive tax cuts, the House is disrespecting the will of the voters, and they are setting Massachusetts up for brutal cuts when the next recession hits.
Disappointed too? Let your state representative know.
You can also let your state representative know (on phone or in person tomorrow) that you want them to support two amendments filed by Rep. Mike Connolly:
- #5 (Establishing a Tiered Corporate Minimum Tax), which ensures that large corporations pay their fair share [When corporations, through accounting wizardry, secure a $0 tax liability, the minimum tax they have to pay is $456. That tax should be based on the size of the corporation.]
- #11 (Maintaining Some Degree of Short-Term Capital Gains Equity) to blunt the cut to the short-term capital gains tax
