Gov. Charlie Baker offers tax relief plan as revenues surge
BOSTON — Republican Gov. Charlie Baker, who has been open to raising taxes, on Friday outlined a new tax relief proposal that his administration says will benefit 1 million taxpayers with dependents.
In a $648 million spending bill that allocated surplus fiscal 2019 revenue, Baker is proposing to double the income tax exemption for dependents from $1,000 to $2,000. The tax break would affect taxpayers who have children or care for dependent relatives who are elderly or have a disability, and is worth about $50 per dependent, according to the administration.
The supplemental spending bill also includes funding addressing fentanyl trafficking, drinking water contaminants, education for low-income students, and local roads and bridges.
To pay for the tax relief, Baker proposes depositing $175 million in surplus revenues into a tax reduction fund to support two years of deductions at the higher rate without affecting this year's budget or the fiscal 2021 budget. After that, the tax relief would then be incorporated into annual budget assumptions, according to the governor's plans.
Read more: https://www.masslive.com/news/2019/09/gov-charlie-baker-offers-tax-relief-plan-as-revenues-surge.html