The long-awaited $590 million tax relief has just been approved by the Senate of Massachusetts last Thursday.
The Long-Awaited Tax Relief Finally Approved
The Massachusetts Senate finally approved the long-awaited $590 million tax relief last Thursday, all thanks to Gov. Maura Healey, who finalized the proposal by coming up with the final tax-cutting plan. The proposal is believed to increase the deduction cap of rentals to $4,000, compared to the previous deduction cap of $3,000. Like the House, the Senate would also increase the estate tax threshold of the state to $2 million.
Gov. Healey promised to erase the tax for estates valued at $3 million. Massachusetts is one of 12 states that have taxes on estates. Karen Spika, the President of the Senate, labeled the proposal as “sustainable” and “smart”. Last April, lawmakers of the Massachusetts House approved their own package that amounts to $654 million.
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How The Tax Relief Would Work?
The proposal would change the 1986 law that served to limit the tax revenue growth of the state, which also compelled the state to return the excess payments to its respective taxpayers. It will be mostly up to the House to formulate a compromise bill which would be sent back to Healey. The debate for the budget came after April tax revenues went down by more than @2.1 million.
Reimbursement by the state could possibly happen to the federal government after it was found out after an audit that the state used $2.5 billion of federal funds instead of state funds to pay the benefits of 2020. The bill is expected to be taken up next week by the Senate.
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