Dear Neighbors,
REMINDER: SALAD PARTY SATURDAY
Please join me on Saturday, June 10 from 5 to 8 at Cornerstone CoHousing, 171-195 Harvey Street in Cambridge.
I'll be making lots of salads. It will be good to get together! RSVP's are welcome but not required.
All you need to bring is yourself, and a friend if you want to. But if you want to bring snacks, drinks, or dessert, that’s welcome. If you want to chop vegetables Friday or help set up Saturday, LMK.
More info here.
PIONEER INSTITUTE DISAGREES
ICYMI, Eileen McEnneny of the Pioneer Institute wrote a response to my recent Globe letter about the flight of the millionaires. See if you think she succeeded in actually refuting any of my points. I don't.
BUDGET SUMMARY
It's hard to write a summary of the $55.9 billion Senate budget. It includes expansion of childcare funding, first steps toward free community college, and increased funding for the MBTA, thanks to $1 billion in revenue from the Fair Share Amendment.
Thanks to Laura Gomez Arango, my communications director, and Matt Hartman, my chief of staff, for a comprehensive press release you can read here. It's really worth at least skimming, for information on the many programs constituents asked me to prioritize, including local programs and Fair Share commitments. But you've told me to keep newsletters shorter.
SENATE WAYS AND MEANS TAX PROPOSAL
This morning the Senate Ways and Means Committee (including me) voted to send a proposed tax bill to the Senate for consideration next Thursday. Since I've been writing so much about these issues, I thought you'd like to know about this proposal. The total cost is $586,000,000 for next fiscal year. Unlike other proposals, the cost does not increase in future years; the other proposals phase in some revenue reductions.
If you are interested, you can compare this to the governor's plan with an eventual cost of about $1 billion a year, and the House plan with an eventual cost of $1.1 billion a year. The House and Senate budgets are based on an estimated $575 million reduction in revenue for FY 2024.
The Ways and Means proposal contains changes similar to the other plans:
Increases the rental deduction cap from $3,000 to $4,000.
Increases the Earned Income Tax Credit from 30% to 40% of the federal credit.
Increases the senior circuit breaker tax credit cap from $750 to $1,500.
Increases the child and dependent tax credit from $180 to $310 per child/dependent and eliminates the child/dependent cap.
Exempts estates under $2,000,000 from the estate tax and eliminates the “tax cliff”
It contains other provisions not present in the others:
Adds regional transit passes and bike commuter expenses to allowable commuter expenses for deductions.
Employer student loan payments will not be treated as taxable compensation.
Doubles credit to $3,000 for full abatement and $1,000 for partial abatement.
Increases the maximum Title V septic system tax credit from $6,000 to $18,000.
Extends the sunset for the Brownfields redevelopment tax credit from 2023 to 2028.
Increases statewide cap on dairy farmer tax credit program from $6,000,000 to $8,000,000.
Increases statewide cap from $10M to $57M one-time and then to $30M annually. HDIP provides tax credits for market rate housing developments in Gateway Cities.
Raises the annual authorization for the Low-Income Housing Tax Credit from $40,000,000 to $60,000,000.
Allows municipalities to adopt a local property tax exemption for real estate that is rented by a person whose income is less than 130% of the area median income.
Expands occupations eligible for the apprenticeship tax credit and doubles the statewide cap on credits to $5,000,000.
Raises the maximum amount of alcohol for hard cider and still wines to 8½% which allows more locally produced hard cider and still wines to be taxed at a lower rate.
I've heard from many constituents about both support and concern regarding several of these proposals - and others! I'm sending this today without analysis or comparison so we can all think about them before next Thursday.
Here's alinkto my previous newsletters on taxes.
Stay in touch,
Pat Jehlen