Jamie is a proud co-sponsor of An Act to Invest in our Communities, which is sponsored by Senator Sonia Chang-Diaz and Representative Jim O’Day.
Summary: This bill would raise $1.2 billion annually by asking more from high income households and investors who received large windfalls from the Bush tax cuts, while raising the personal exemption as a way of holding down any tax increase for middle-class families. Under this package, most people in Massachusetts would actually see a modest tax cut.
Why This Matters: We are just emerging from the deepest Recession of our lifetimes. With the end of federal stimulus funding, we have a nearly $2 Billion budget deficit. That means our schools, Local Aid, and emergency and health care services face deep cuts this spring. Meanwhile, wealthy investors and high-income households have had their Bush-era tax cuts extended, worsening deficits and economic inequality.
We need to invest in our communities and keep middle-class families working and earning! While there will be substantial cuts in services this year, this bill takes a balanced approach to the fiscal crisis by raising revenue to maintain the services we need and value. By asking more from high income households and investors who received large windfalls from the Bush tax cuts, while raising the personal exemption as a way to hold down the tax increase for middle-class families, the bill raises needed revenue primarily from those who can best afford to pay. With that revenue, we can keep the quality schools and services that make our state a good place to live and do business.
What This Bill Would Do: This bill would:
1) Restore the income tax rate from 5.3% to 5.95%, but raises the personal exemption enough to hold down increases for middle-class families.
2) Raise the tax rate on wealthy investors, but provide a targeted exemption for middle-class seniors.
3) Raises revenue to maintain funding for our communities, schools and health care,