Since last year’s Fair Share victory, our state’s super-rich and their allies in the media have been pushing a myth that we need to cut taxes on the rich to prevent people from leaving Massachusetts. Even though this has been widely debunked, Governor Healey heeded such demands by proposing a tax reform package skewed toward the very rich. The House, back in April, followed suit.
The Senate is taking up its own tax package this afternoon. So take some time this morning to email your state senator about protecting the Fair Share victory and better responding to our housing crisis — then read on for more.
Saying No to Tax Cuts for the Super-Rich and Large Corporations
Let’s start with some good news:
- The Senate bill rejects the proposed $117 million tax cut for day traders and speculators proposed by Gov. Healey and passed by the MA House in April. Notably, both chambers rejected this idea last year when Governor Baker proposed it.
- The Senate bill rejected a $79 million corporate tax giveaway that the House back in April with no public debate.
- The Senate bill offers a less expensive and less regressive cut to the estate tax than either Governor Healey or the MA House. Unfortunately, every estate tax proposal includes tax cuts for the largest estates rather than limiting them to more modest estates subject to the tax.
Voters last year were clear that they wanted the super-rich to pay more so that we can invest in our schools and infrastructure, so it’s important that senators hold the line here in today’s vote and in negotiations to come.
Housing: The Real Reason Why People Are Moving out of MA
High-ranking senators have rightly noted that the reason people are moving out of MA is not taxes–it’s the high cost of housing. However, the Senate’s proposals on housing are mixed. Although the expansion of the low-income housing tax credit can help our state address a growing housing crisis, increasing the Housing Development Incentive Program (HDIP) without accountability or affordability measures is a false solution.
The HDIP program provides millions in state tax credits and local tax breaks for developers of market-rate housing in Gateway cities. However, the units built through these incentives can be shockingly expensive, and incentives often go to areas that are already attractive to developers. Moreover, the program lacks basic monitoring and oversight to ensure that it is achieving desired ends. Only with affordability and accountability requirements can the program be part of the solution to our housing crisis.
How Your Senator Can Make the Bill Better
Your senator can better protect Fair Share and better respond to our housing crisis by supporting these three amendments:
- Amendment #16 (Sen. Eldridge): Improve HDIP to create affordable housing, which would ensure that HDIP funds support badly needed mixed income housing by requiring developments funded under the program to have at least 20% permanently affordable housing.
- Amendment #19 (Sen. Eldridge): Improve transparency of HDIP program, which would establish regular reporting on the awarding of such tax incentives
- Amendment #26 (Sen. Lewis): Reducing high income tax avoidance, which would protect the revenue raised by the Fair Share Amendment by ensuring that couples who file jointly on their federal taxes do so in Massachusetts as well.
Can you email your state senator this morning about supporting these three amendments?
