By Bob Katzen
The Senate 7-31, rejected an amendment that would reduce the short-term capital gains tax from 12 percent to 5 percent; increase the no-income tax status threshold from $8,000 to $12,500; and increase the rental deduction cap from $3,000 to $5,000, instead of just to $4,000 which the original bill provides.
Supporters said that the state is sitting on a surplus of more than $3 billion and should return more of that money to taxpayers. They argued the state can easily afford these additional tax cuts that would help taxpayers during this horrible economic time of rising prices of gas, food and just about everything else. They noted that raising the no income tax threshold would align the state with the federal government and provide direct relief to more than 234,000 low-income Massachusetts filers that would no longer have to pay any state income taxes.
Opponents said the state cannot afford the loss of millions of dollars in revenue from this additional tax relief. They listed the many tax cuts that are already in the bill and said the amendment is not necessary.
(A “Yes” vote is for the additional tax relief. A “No” vote is against it.)
Sen. Patricia Jehlen No