REDUCE CAPITAL GAINS TAX FROM 12 PERCENT TO 5 PERCENT

By Bob Katzen

The House 29-127,rejected an amendment that would reduce the short-term capital gains tax from 12 percent to 5 percent.

Chip Ford, executive director of Citizens for Limited Taxation said that anything that can help the investors in Massachusetts keep up with mounting inflation is a positive step for the commonwealth’s economy, “Why should the capital gains or any tax imposed be charged at a higher rate than earned income, especially considering the multi-billions in historic revenue surpluses?” asked Ford.

“The Massachusetts Legislature had a great opportunity to lower the capital gains tax, which taxes economic growth,” said Paul Craney, Executive Director of the Mass Fiscal Alliance. “Unfortunately they refused to lower it and in fact, their legislature’s ballot question this November hopes to increase the tax from 12 percent to 17 percent for some earners. It’s clear the Legislature wants to bring us back to Taxachusetts.”

Amendment opponents again said that this amendment is premature and urged the House not to act on tax reductions one at a time but instead to wait and consider Gov. Baker’s comprehensive tax reduction package which might be voted on in a few weeks.

Reps. Nick Boldyga (R-Southwick), the sponsor of the amendment and Rep. Mark Cusack (D-Braintree), the main opponent of the amendment, did not respond to repeated requests from Beacon Hill Roll Call for a comment.

(A “Yes” vote is for reducing capital gains tax from 12 percent to 5 percent. A “No” vote is against the reduction).

Rep. Christine Barber No Rep. Mike Connolly No Rep. Erika Uyterhoeven No

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