We’re in the thick of it now, friend!
And I don’t just mean pollen season.
As the weather heats up, so do the debates on the FY2024 budget and the $1.1 billion tax cut package, nearly half of which is designed to exclusively benefit the wealthy.
How does a Democratic trifecta justify their plans to slash $440 million in taxes for the super rich and corporations? To keep Massachusetts “competitive,” of course.
The argument goes something like this: if we impose higher taxes on wealthy people and businesses than other states, then those businesses and rich people will leave MA and the state will lose the economic benefits that come with them.
Sound familiar? Yep–that’s the basic principle of trickle-down economics, the conservative Reagan-touted and entirely discredited theory that slashing taxes for rich people and corporations benefits the rest of us. Not to mention the premise that wealthy people are fleeing the Bay State has also been entirely debunked.
Don’t get me wrong, people are fleeing Massachusetts, but it’s not the rich. Due to everything from the high costs of housing, childcare, and education, to the unreliable MBTA and internationally infamous traffic, 110,000 people have left MA since the start of Covid.
So when we talk about keeping the Bay State “competitive,” it’s worth asking: competitive for whom?
Is a state with skyrocketing rents and a blanket ban on rent control “competitive” for renters, especially when homeownership is increasingly inaccessible? Is a state with the highest healthcare costs in the country which refuses to even vote on medicare for all “competitive” for working people? Is a state where the gender and racial wage gap has gotten worse over the last decade, and yet will not pass an act preventing wage theft, “competitive” for QTBIPOC folks? Black and Latina women?
State House Scoop
Senate unveils budget proposal, vote expected week of the 24th
Senate Ways & Means released their proposal for the FY2024 budget this week. Next, the Senate will vote on this proposal, accepting and rejecting hundreds of amendments. Then, the differences between the House and Senate versions will be hammered out in a conference committee. From there, the budget goes back to Healey for signing and line item vetoes. In other words, miles to go before we sleep.
The Senate included some strong new proposals, including a provision to allow high school students without federal status to qualify for in-state tuition at Massachusetts’ public universities–something already done in 23 other states plus D.C. (Here’s a mini not-so-fun fact: this policy died in the legislature way back in 2006. Among the reps who voted it down: now-Speaker Mariano.) The Senate also proposed addressing healthcare staffing shortages by providing loan repayment for behavioral healthcare workers and covering costs for current community college nursing students.
There were also a number of positive measures in the House’s budget that the Senate skipped. Namely, neither Healey’s nor the Senate’s versions included the House’s proposal to reform the regressive tax rebate law known as 62f to return excess tax revenue back to taxpayers equally instead of proportionately. The Senate also snubbed funding to make free school meals permanent, and snubbed funding for the long-overdue east-west rail. Remember–if we actually taxed the wealthy and corporations progressively, we wouldn’t have to choose between loan repayment for healthcare workers and school meals for kids. Speaking of which…
Healey doubles down on tax cuts despite April revenue collapse
With two months left in FY2023, the state budget is suddenly back in flux after a collapse in revenue collection in April. According to the Department of Revenue, the state collected $4.78 billion in taxes last month, down almost a third from this time last year, and 23% below the monthly benchmark projection. Through March, the state was running about $870 million in the black for FY23, but April’s collapse swings the state $703 million in the red, a difference of over a billion dollars.
Such a drastic drop in what is typically the largest collection month of the year is raising alarm bells about the tax cut bill that the Governor and Speaker have been pushing. Frankly, if it wasn’t a good idea to slash taxes for the rich before (and it wasn’t), it's an even worse idea now. Despite that, the Governor has been going on a press tour to assert that this tax dip was anticipated and won’t affect her plan to cut taxes at all. Ironically, one of the reasons Healey cited for the dip was lower revenue from capital gains — one of the very taxes she and the Speaker hope to slash.
Luckily, it’s not all up to Healey; the tax cut bill is now in the hands of the Senate who plans to tackle it after the Budget. Senate President Spilka told the press that she hasn’t ruled anything out, but also “hasn’t ruled anything in”. Let’s nudge her in the right direction, shall we?
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Missed a Scoop or two? You can find a full archive of all past Saturday Scoops on our blog.
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Take Action
Introducing MAPLE: The Massachusetts Platform for Legislative Engagement
There is no legal obligation for the state legislature to disclose what written testimony they receive, which makes it not only difficult to understand who is informing legislators’ decisions, but also difficult for legislators themselves to access public testimony given on a bill. Enter MAPLE: a new public online database for Bay Staters to submit testimony and increase access to legislative information. With two of our priority bills coming up for a hearing next week, there’s no better time to give MAPLE a try and submit testimony! You can submit testimony at any time, but it’s best to submit it before the hearing occurs. Learn more about MAPLE here.
On Tuesday, the Joint Committee on Revenue will be hearing testimony on H.2708/S.1925: Close Corporate Loopholes and Create Progressive Revenue Act: Tackling the Corporate Tax Evasion Crisis. Read more about the bill here.
TESTIFY: STOP CORPORATE OFFSHORING >>
And on Wednesday, the Joint Committee on Environment and Natural Resources will hold a hearing on H.872/S.481: An Act establishing a climate change superfund and promoting polluter responsibility. Read more about the bill here.
TESTIFY: POLLUTER RESPONSIBILITY >>
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And last, a not-so-fun fact to kick off your weekend
If you’re receiving this Scoop, you likely already know that our legislature is among the least transparent in the country. That’s yesterday’s news. Today’s news? It’s getting worse. According to numbers crunched by MASSterList, there were fewer recorded votes last session with Speaker Mariano at the helm than during former Speaker Robert DeLeo’s tenure. Specifically, last session had a paltry 286 recorded roll-call votes–just 60% of the average number of roll calls in the five legislative sessions prior.
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All right, enough of reading your emails--go enjoy the gorgeous weather! It's true that Massachusetts has its share of issues (not limited to the above) but it really is a beautiful place to live, especially in the springtime. Especially if you don't have allergies.
Until next week,
Erin Leahy
Executive Director, Act on Mass
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