Massachusetts lawmakers are set to hear public feedback on the governor's big plan to turn the state into a magnet for global tech, top tier talent, and new business.
The ‘Mass Wins Act’ would invest money into innovation and make it easier for major industries to set up shop in the state. But beyond the goal of staying competitive, State House News Service reporter Alison Kuznitz says, the bill is meant to convince talented graduates or startups to stay in Massachusetts instead of heading to a cheaper state.
Alison Kuznitz, SHNS: So, as an economic development bill, this is kind of a hodgepodge of different investments all rolled into one. So, for example, Governor Maura Healey has proposed investing $10 million for an annual internship tax credit. There's multi-million dollar investments across the defense sector, applied Artificial Intelligence and robotics. And there's also an interesting provision to slash the business registration fee that would make it easier for businesses to get going in Massachusetts.
Carrie Healy, NEPM: So, once everyone's done talking at tomorrow's hearing, how long is this actually going to sit on a desk before we see any real movement?
So, this bill actually got filed pretty late in the session. It was filed in mid-April and it's really crunch time now for Beacon Hill. The Senate this week is going to be focused on its budget. Once the budget is finished, that will go to the House conference committee. And there's a lot of other bills that need to be hashed out. We've been hearing a lot about primary care, and emerging energy affordability needs to be handled also. [There’s also] potentially social media regulations and data privacy. So, there's a lot that Beacon Hill has to get to before it can get to this economic development bill.
Last week, Senate President Karen Spilka called a proposed ballot question to cut the state income tax a ‘sledgehammer’ approach, arguing that it's far too clumsy for the state's complex tax code. While the plan sounds like a straightforward win for taxpayers, lawmakers say there are some major poison pills buried in the fine print that voters don't see. Spilka mentioned that this tax cut could actually backfire on some of the state's most vulnerable groups. So, what are those unintended consequences that she's warning about?
There's a few provisions that Governor Maura Healey and Senate President Karen Spilka are concerned about. One, this question would get rid of the charitable tax deduction because the deduction is tied to the income tax rate being 5%. There's also the possibility that should this ballot question pass and become law, that the S Corp tax rate would also increase.
With Spilka pushing for that more surgical touch to income taxes, that leaves many wondering if that's just code for no tax relief at all. The Senate starts its own budget debate this week. Is there actually any tax relief in the mix for regular people, or is that construction sales tax break the only surgery that they're going to perform?
In a recent supplemental budget the Senate did eliminate the sales tax on housing construction materials.
There is a possibility of additional tax relief in this budget. But, based on the previous House budget deliberations, all proposed tax policy amendments from Republicans were rejected. There are similar amendments from Republicans in the Senate on the table for this week as well. Some things, you know, like decreasing the income tax rate and maybe even suspending the gas tax rate.
And one Democratic senator actually has a tax proposal that would increase the tax rate on corporations.
