What’s Progressive and What’s Not in Gov. Healey’s Tax Proposal

In her campaign last year, Governor Maura Healey touted a promise to cut taxes and address the high cost of living in Massachusetts. In her recently released budget, she offered her version of tax reform.

Before diving into it, any discussion of taxes must begin with a few acknowledgements:

(1) The “Taxachusetts” myth is just that: indeed, we are middle-of-the-pack when it comes to taxation levels compared to other states.

(2) We have long had a regressive tax code, with a flat income tax such — meaning that someone making $30,000 would pay the same income tax rate as someone making $3 million. Voters, fortunately, chose to take a step forward toward progressivity by passing the Fair Share Amendment last fall, creating a surtax on income over $1 million.

(3) If we want to invest in our collective well-being and our public infrastructure, we need revenue. If we want to maintain public goods and services, we need to invest in them.

Back to Healey’s proposal…

How much? The total tax package would cost $986 million each year. Notably, that is almost the same as the amount of money she plans to designate for Fair Share revenue and appropriations ($1 billion). Healey’s proposed use of Fair Share funds cover many important programs and initiatives, but if we raise $1 billion only to also spend $1 billion in tax cuts, we risk creating a situation where money is just being moved around. Fair Share funds should be truly additive to deliver on the intent of the voters. Moreover, spending so much on long-term tax cuts is also risky as increased federal funding for Mass Health, rental assistance, and SNAP is ending — and could be cut even further if Republicans in Congress get their way.

What’s Most Progressive? According to an analysis from MassBudget, the most progressive parts of Healey’s proposal are the doubling of the the Senior Circuit Breaker tax credit (which helps offset property taxes faced by seniors with modest incomes) and an increase in the Renters Deduction (which, in impact, ends up only $50 for renters who don’t already get a refund). An extra $50 in the pocket of renters ultimately won’t go very far, given escalating rents and costs in general. Combined, these proposals amount to $100 million.

MassBudget: https://massbudget.org/2023/03/16/gov-tax-plan/

What’s Somewhat Progressive? The largest part of the tax package is the child and family tax credit, which would amount to $600 per child under 13 or dependent adult and cost $458 million. It is unclear why parents of teenagers should not get the same benefit: any parent of a teenager will tell you how much it costs to feed a teenager. Families with low and middle incomes will certainly benefit from extra money in their pocket, but $600 will not last long given that two weeks of child care cost more than that. The credit thus does little to address the real drivers of the cost of living in Massachusetts, even if it can help around the edges.

What’s Regressive? Unfortunately, almost $400 million in tax cuts from the package are outright regressive in impact. That includes $117 million in a cut to the tax rate for short-term capital gains: the highest-income 1 percent of households would receive an estimated 77 percent of this – an average of over $7,000 apiece. Even more jarring is the cut to the estate tax, which would amount to $275 million. Healey’s proposal would create a $182,000 tax credit for large estates, wiping away estate tax for estates under $3 million and amounting to a $182,000 giveaway to estates over $3 million.

What Should Change? Any tax reform package should be progressive overall and should also be at least revenue-neutral (meaning that it raises back anything that it spends). Legislators should reject outright the proposed cut to the capital gains tax, as they did last year when Governor Baker proposed it. If legislators are committed to changing the estate tax, they can eliminate the cliff effect that currently exists at $1 million without giving away money to the largest estates. And if legislators want to pass the more progressive parts of Healey’s proposal, they should fund them by embracing progressive tax proposals like increasing the corporate tax rate, increasing the tax rate on offshored income, or creating a tiered corporate minimum tax (so that large corporations can’t get by with only paying $456).

What Can You Do? Write to your legislators! They need to hear from you while they are crafting their own budget proposals.

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ACT NOW: Voters Want Investment, Not Tax Cuts for the Rich

In November, voters passed the Fair Share Amendment, decisively choosing to raise significant new revenue for investments in transportation and public education by increasing taxes on the richest taxpayers.

Any additional changes to state tax policy should similarly prioritize fairness while preserving state revenues that are necessary to sustain long-term improvements in both education and transportation, as well as other critical areas such as housing, health care, and human services.

Unfortunately, last week, Governor Maura Healey put forth a proposal to cut state taxes by a billion dollars each year, including nearly $400 million in cuts to estate and short-term capital gains taxes that amount to a windfall to the richest 1%, would directly undermine the goals of the Fair Share Amendment while placing the state at risk for catastrophic budget cuts in future years.

How much would different groups receive from proposed state tax cuts?

Low-income seniors: $1,200

Renters: $50

Children: $6500

Estates worth over $3 million: $182,000

Tackling the real challenges to the Commonwealth’s economic competitiveness – from working families’ struggles to afford housing and child care, to our economy’s need for an educated workforce and safe and reliable transportation infrastructure – will require making significant investments over the coming years. To make those investments possible, we need to protect both the new revenue from the Fair Share Amendment, and overall state revenue in general.

The ball is now in the Legislature’s court, as the House and the Senate will be working on their respective budgets in the coming weeks.

Contact your legislators today to prioritize and protect both the new revenue from the Fair Share Amendment, and overall state revenue in general, this year in the FY24 Budget.

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Letter: “In pitching Healey on tax reform, Question 1’s foes haven’t gotten the message”

Jonathan Cohn, “In pitching Healey on tax reform, Question 1’s foes haven’t gotten the message,” (letter) Boston Globe, January 25, 2023.

In November, voters chose a fairer tax system by passing Question 1, the “millionaires tax” (“Business community has a big ask of new governor: Tackle taxes,” Chesto Means Business, Jan. 19). Voters were clear that the best way to boost Massachusetts’ economy isn’t cutting taxes for the ultrarich; rather, it’s raising them to invest in public goods that help all residents and businesses succeed, such as well-funded schools, better roads and bridges, affordable public colleges and universities, and reliable public transportation.

Massachusetts faces real problems that are threatening our economic competitiveness, from our high housing costs and crumbling infrastructure to the enormous burden families face paying for child care and college.

But the business lobbyists who led the losing fight against Question 1 clearly haven’t gotten the message. They continue to pay lip service to the need to solve those big problems while focusing their real energy on their latest effort to cut taxes for the wealthy.

The passage of the Fair Share Amendment showed that voters want to see our state government make major investments to tackle the challenges we face as a Commonwealth. Large, profitable corporations and their wealthy investors need to stop putting up roadblocks to the change voters demanded.

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Celebrating—and Building on—Historic Victories

On Tuesday, Massachusetts voters made history. We made history.

By voting YES on 1 and passing the Fair Share Amendment, Massachusetts voters said YES to a more equitable tax code and to transformative investments in our public schools and infrastructure.

This victory was years, decades, in the making. Since voters put a flat tax into the state constitution in 1915, Massachusetts has suffered from a regressive tax code, hamstringing our ability to deliver on a goal on shared prosperity despite great resources. Five times, activists tried to change that, but each time, facing moneyed opposition, misinformation, and anti-tax sentiment, they lost.

But this time, we—the people—won. The millionaires and billionaires of the state will chip in more so that every student can get a high-quality public education, so that our public colleges and universities can get proper funding, so that our roads and bridges can be safe to drive on, and so that our public transit systems can move us around the commonwealth more quickly.

And that win would never have happened without the countless hours of work from members of the Raise Up Mass Coalition, which we have been proud to be a part of. Your hours of signature collection, pledge card collection, phone calling, canvassing, educating friends and neighbors, holding events. It is that work that is the lifeblood of democracy.

By voting YES on 4 and upholding the Work & Family Mobility Act, we cemented our status as the 17th state to ensure that all qualified drivers, regardless of immigration status, can obtain a driver’s license, making our roads safer, expanding economic opportunity, recognizing that mobility is a basic right, and treating our immigrant communities with the dignity they deserve.

That victory, both legislative and ballot, was the result of the Driving Families Forward coalition, which we were proud to be a part of. And it, again, required the work of outreach, of organizing, and of pushing back against misinformation.

Both wins show the power of organizing across the Commonwealth in ways that bring community groups into coalition with labor and in ways that listen to the voices and needs of the most impacted.

So, THANK YOU for what you’ve done in making those victories possible.

But also THANK YOU for the work you will continue to do. Progressive Mass was founded almost ten years ago out of a recognition that this work needs to continue after the election is over. That period in between cycles is when we preserve and grow the power that we build, where we foster communities of organizers, where we educate our neighbors about what is possible.

We hope you’ll join us in that work by becoming a member of Progressive Mass.

Thank you for all you do.

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The polls close soon…where is your vote?

It’s finally Election Day!!!
This year’s ballot questions have the possibility to greatly impact the safety and equity of life in Massachusetts.

Whether that impact will be positive or negative is up to your YES votes.

Below is an explanation of why we have endorsed YES on Questions 1, 2, and 4 (and for those select districts, 5 and 6). Please share these resources with your family, friends and neighbors and help us promote progressive policy.

YES ON 1: Fair Share Amendment

The Fair Share Amendment – Question 1 on the November ballot – will allow Massachusetts to improve our transportation and public education systems by making the very rich pay their fair share. Question 1 would create a 4 percent tax on the portion of a person’s annual income above $1 million and constitutionally dedicate the funds to be spent on transportation and public education. Only people who earn more than $1 million annually will be impacted; 99% of us won’t pay a penny more. And we’ll all benefit from better schools, roads, bridges, and public transportation.

We know that there are lots of questions about how the tax will be implemented and spent. The Fair Share FAQ website has factual, easy to understand answers, including in the extremely rare instances where it will apply to the sale of houses and businesses.

YES on 2: Better Dental Care

In Massachusetts, we have a law that requires medical insurance plans to spend at least 88% of all premiums on health care or efforts to improve the quality of health care delivery. However, no such requirement exists for dental insurance. If Question 2 passes, a minimum of 83% of your premium would have to be spent on care, rather than profit, and strengthen financial transparency of dental insurance companies.

To learn how a Yes vote on Question 2 will require more patient dollars to be spent on patient care check out the Yes on 2 website FAQ.

YES on 4: Safer Roads

A YES on 4 would uphold the Work & Family Mobility Act, a bill passed by 75% of the MA Legislature that would allow qualified drivers – regardless of immigration status – to pass a road test, buy insurance, obtain a license and legally drive in Massachusetts. By voting YES ON 4, Massachusetts voters will ensure that immigrants without status can legally make essential trips, like dropping off kids at school and getting to work, while promoting road safety for all of us.

Learn more about the positive impact similar legislation has made in other states and why it should stay law by visiting the Safer Roads MA FAQ site.

Wait, Is There a Q5 or a Q6, too?

In select state representative districts, there are non-binding advisory questions as well, and if you see them on your ballot, we recommend voting YES on these questions also:

YES on 5, which would instruct the district’s state representative to support legislation to create a single payer health care system in Massachusetts so that we finally treat health care as a right, not a privilege.
YES on 6, which would instruct the district’s state representative to support a change to the MA House’s rules enabling all legislative committees’ votes to be public, posted online as they are in most other states.

Both are clear and simple; and lots of YES votes send a strong message to your state representative.

Some final voting reminders…

If you’re voting in person–find your polling location here! Polls close at 8 pm.
If you haven’t mailed in your ballot yet then unfortunately it is not guaranteed that it will be counted in time. We highly encourage you to vote in person instead.
If you already mailed your ballot, use the track my ballot site to make sure it was accepted. If it was rejected (perhaps missing a signature), you can vote in person today.

If you have any questions about the ballot questions or making your vote count, please feel free to respond to this email- we are here to help!

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Your Voter Guide for The Upcoming Election

Election Day is less than three weeks away. Do you have a plan to vote?

Fortunately, you have options for how to vote this year (and, indeed, you may have already voted!):

Vote by mail: If you haven’t sent in a vote-by-mail application yet and wish to do so, you can download a form here. If you’ve already received your ballot, you can send it back via mail or via a dropbox near you. And if you want to confirm receipt, you can track your ballot.
Vote early in person: Early voting starts this weekend. You can find locations in your community here.
Vote on Election Day: As always, you can confirm your polling place at wheredoivotema.com.

And remember, the deadline to register to vote or update your registration is Saturday, October 29. You can register online here if you need to.

Your Progressive Guide to the Statewide Ballot Initiatives

YES ON 1: Fair Share Amendment

The Fair Share Amendment – Question 1 on the November ballot – will allow Massachusetts to improve our transportation and public education systems by making the very rich pay their fair share. Question 1 would create a 4 percent tax on the portion of a person’s annual income above $1 million and constitutionally dedicate the funds to be spent on transportation and public education. Only people who earn more than $1 million annually will be impacted; 99% of us won’t pay a penny more. And we’ll all benefit from better schools, roads, bridges, and public transportation. Learn more and get involved at FairShareMA.com.

YES on 2: Better Dental Care

In Massachusetts, we have a law that requires medical insurance plans to spend at least 88% of all money taken in by premiums on health care or efforts to improve the quality of health care delivery. However, no such requirement exists for dental insurance, enabling insurance companies to siphon off as much as they want to line executives’ pockets. Question 2 would establish such a requirement for dental insurance plans so that dental insurance premiums go toward care, rather than profit, and strengthen financial transparency and regulation of dental insurance companies.

YES on 4: Safer Roads

A YES on 4 would uphold the Work & Family Mobility Act, a bill passed by 75% of the MA Legislature that would allow qualified drivers – regardless of immigration status – to pass a road test, buy insurance, obtain a license and legally drive in Massachusetts. By voting YES ON 4, Massachusetts voters will ensure that immigrants without status can legally make essential trips, like dropping off kids at school and getting to work, medical appointments, and the grocery store, while upholding the regulatory framework that ensures all drivers have passed a road test, bought insurance, and have a form of verified identification. Learn more and get involved at https://saferroadsma.com/.

Wait, Is There a 5 or a 6, too?

In select state representative districts, there are non-binding advisory questions as well, and if you see them on your ballot, you should also vote YES:

YES on 5, which would instruct the district’s state representative to support legislation to create a single payer health care system in Massachusetts so that we finally treat health care as a right, not a privilege.
YES on 6, which would instruct the district’s state representative to support a change to the MA House’s rules enabling all legislative committee’s votes to be public, posted online as they are on most other states.

Both are clear and simple; you should vote YES, and your state representative should listen.

Legislative Endorsements

As a reminder, our members have endorsed the following candidates:

State Senate

Hampden, Hampshire & Worcester: Jake Oliveira

Norfolk, Worcester & Middlesex: Becca Rausch

Second Suffolk: Liz Miranda

First Worcester: Robyn Kennedy

State House

3rd Bristol: Carol Doherty

7th Essex: Manny Cruz

8th Middlesex: James Arena-DeRosa

22nd Middlesex: Teresa English

27th Middlesex: Erika Uyterhoeven

9th Norfolk: Kevin Kalkut

11th Plymouth: Rita Mendes

5th Suffolk: Christopher Worrell

15th Suffolk: Sam Montaño

11th Worcester: Stephen Fishman

17th Worcester: David LeBoeuf

District Attorney

Plymouth County: Rahsaan Hall

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Election Day Is One Month and One Day Away. Let’s Get to Work.

Election Day is one month and one day away. That’s right: November 8 is coming fast.

And there are many opportunities, all across Massachusetts, to help ensure victory for Question 1 and Question 4 this November.

Question 1: The Fair Share Amendment

As a reminder, Question 1, the Fair Share Amendment, would add a 4% surtax to the portion of someone’s annual income over $1 million to raise $2 billion in constitutionally dedicated funds for public education and transportation across the Commonwealth. 99+% of us won’t pay a penny more, but we will all benefit from the investments the revenue would make possible.

Those investments can mean greater funding for early education, for more teachers and counselors in our schools, for lowering tuition and hiring faculty and at our public colleges and universities, for fixing potholes, for upgrading structurally deficient bridges, and for expanding access to high-quality public transit.

Here’s how you can help:

Find a canvass near you.
Sign up for a phone bank.
Sign up for a relational organizing training.

Question 4: The Work & Family Mobility Act / YES for Safer Roads

As a reminder, in June over 75% of Massachusetts State Senators and Representatives voted to override a gubernatorial veto so that all qualified state residents, regardless of immigration status, can apply for a standard Massachusetts driver’s license starting on July 1, 2023, joining 18 other states with such laws including our neighbors New York, Connecticut, Rhode Island, and Vermont.

Unfortunately, xenophobes and reactionaries in the state are trying to overturn this and are hoping to repeal it by ballot. But we won’t let them.

Vote YES to keep the law in place for safer roads, greater public safety, and work and family mobility.

Find a canvass near you.
Sign up for a phone bank.
Pledge to vote YES on Question 4 here.

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Take Action: The MA Legislative Session Ends in TWO WEEKS

Did you know that the current legislative session at the MA State House ends in just two weeks?

That’s right: any bills that don’t pass between now and July 31st are done until next year (at the earliest).

That means that there will be a flurry of activity in the coming weeks, and we want to keep you in the loop.

Stop the MA Legislature from Giving Massive Tax Breaks to the Wealthiest Estates

The Massachusetts tax system hits the wallets of lower-income people harder than high earners, with the bottom 20% of earners paying a higher percentage of their income in state and local taxes than the top 1%. An exception is the Commonwealth’s relatively robust estate tax. The estate tax is one of the main policies we have focused on reducing the gaping racial wealth gap in Massachusetts.

Nonetheless, the Massachusetts House voted last week to roll back the estate tax, to the cost of $207 million. This lost revenue means money isn’t available for important investments or for tax relief for the struggling residents of the Commonwealth.

Even worse, the estate tax rollback was designed in a way that disproportionately benefits the largest estates, namely those over $3 million. This would be the biggest increase in the racial wealth gap in decades.

If legislators want to help comparatively smaller estates, they should design their design their policies to do so, not advance a costly giveaway to the wealthiest estates.

Can you write to your state senator to urge them to reject the House’s estate tax proposal?

Turn up the Heat: MA Needs Climate Action

A climate bill is in the works, but it hasn’t reached the Governor’s desk yet. Together, the provisions laid forth in the House and Senate proposed bills put Massachusetts in a good position to implement strategies to reduce our emissions 50% by 2030 – as required by law – and create healthier communities.

But these strategies cannot wait two years more to be passed into law! Let’s ensure that lawmakers finalize a climate bill that moves us toward our shared climate and justice goals.

The conference committee and House and Senate leaders must send a bill to the Governor’s deskby Thursday, July 21 to avoid the chance of a pocket veto by Governor Baker.

Your legislators need to hear from you: no climate bill is not an option! Advocates are circulating a public sign-on letter for legislators to show their support for moving this forward swiftly. Your legislators need to hear from you that it’s important they demonstrate support!!

Take action!

Check if your legislators have signed onto the letter
If not, send your legislators a message asking them to sign on – either by emailing them or calling them.

Dear _________

I am alarmed to hear that, in the final days of the legislative session, a comprehensive climate bill is still not on the governor’s desk. We have very little time before the end of the session.

[why passing a climate and justice bill is important to you]

We must get a climate bill to the governor’s desk by Thursday. Please join me in voicing your support for swift passage by signing on to this public “Dear Colleague” letter.

Thank you,

Call

I’m calling to voice concern that the legislature has still not passed a climate bill this session. Climate advocates are circulating a public sign-on letter for legislators in support of quickly moving a bill. Has the Representative/Senator seen the letter? You can view the form and the letter at bit.ly/maclimate22. Will the Representative/Senator sign on?

If yes: Wonderful, thank you. They can use the sign-on form found in the letter

If not sure/need to get back to you: Please let me know what the legislator says.

If no: Can you explain why not?

Two More Asks from Our Allies

Join the Common Start Coalition in calling on the MA House to pass legislation to transform the child care system in MA, including more affordability for families, early educator raises, and stability for child care providers.
Join the Safe Communities Act coalition for a Lobby Day this Thursday at 11 am at the State House. Can’t make it? You can still email your legislators in support.

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This Week: Take Action on Juvenile Justice Reform

What do eggs, lotion, and Slurpees have in common?

All of them have been deemed “dangerous weapons” in courts that made young people ineligible for judicial diversion to community supervision instead of incarceration.

This Thursday, the MA Senate will be voting on an important juvenile justice reform bill (S.2942) to expand opportunities for judicial diversion for youth, as well as another bill (S.2943) that eliminates the requirement that youth pay an $40 administrative bail fee as a condition of being released on bail.

The Senate also has the opportunity to strengthen these reforms by including an amendment (#4 to S.2942, filed by Sen. Pat Jehlen) to preserve the right to education of students who are accused of a felony offense allowing them to remain in school as long as their case has not moved towards an arraignment and that the felony be a “serious violent felony” before a student is suspended from school.

Can you contact your state senator in support of these reforms?

TOMORROW: Fair Share Canvass with Elizabeth Warren

Join Fair Share for Massachusetts and Senator Elizabeth Warren TOMORROW at 5:30 PM to canvass voters and spread the word to vote YES of Fair Share this November!

The kickoff will be at Lincoln Commons Park, Bryant and Cross Street, Malden.

RSVP HERE.

Tell Your Legislator: Pass Child Care Legislation This Legislative Session!

In early 2021, the Common Start Coalition drafted legislation, originally filed by Reps. Gordon & Madaro and Senators Lewis & Moran, that would establish a framework for delivering increased access to affordable, high-quality early education and child care to Massachusetts families, over the course of several years. On May 18, the Legislature’s Education Committee approved a landmark bill, H.4795/S.2883, titled An Act to Expand Access to High-Quality, Affordable Early Education and Care.

Major sections of the Education Committee’s legislation are heavily based on the Common Start bill. Now, we have until the end of the current legislative session on July 31 to pass H.4795/S.2883 and make progress this year on transforming the childcare system in Massachusetts!

Contact your legislators here!

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