As the Massachusetts Legislature shipped its compromise economic development bill to Gov. Charlie Bakers desk Thursday afternoon without permanent tax cuts, Attorney General Maura Healey, the Democratic nominee for governor, gleefully filled a cannoli in the kitchen of Mikes Pastry in Bostons North End and cheered on her lieutenant governor running mate Salem Mayor Kim Driscoll for her more artful technique.
Later at Modern Pastry Shop across the street, Healey joked about bringing treats back to campaign headquarters, as Driscoll and House Ways and Means Chairman Aaron Michlewitz grabbed coffee and a table near the front of the store.
Healey and Michlewitz separately signaled they talked little during their North End campaign stops about the economic development bill or the Legislatures botched opportunity to expand the child care and dependent care credit, raise the rental deduction cap and overhaul the estate tax, among other permanent measures initially under consideration by both the Senate and House of Representatives this summer.Read more: Ballot Question 1: Gov. Baker says millionaires tax is unnecessary
Top budget writers, including Michlewitz, halted those tax changes when the Baker administration sounded the alarm about Chapter 62F, a 1980s controversial tax cap law thats responsible for the ongoing distribution of nearly $3 billion in excess state revenues back to taxpayers.
Yet Healey, should she win the race for governor next Tuesday on Election Day, plans to double down on the tax relief package long championed by outgoing Republican Gov. Charlie Baker. Tax relief and reform, Healey said, is really important.
I think it starts with looking at what Gov. Baker proposed: tax relief for seniors, for low-income folks, for middle-income folks, for renters also changing the limits for the estate tax and supporting things like the earned income tax credit, Healey told reporters. I also think and have proposed a $600 per child tax credit for families that I think will help especially in this time.
Pursuing those reforms will absolutely be a priority day one, Healey said.
Like Baker, Healey applauded the overall passage of the economic development bill, which still contains hundreds of millions of dollars for housing, clean energy infrastructure, health and human service workers, and the MBTA, among other spending priorities. But both the current governor and Healey lamented the omission of permanent tax relief as Bay Staters feel the pinch of inflation while the state remains awash in resources.Read more: Mass. tax refund formula flawed, checks will be too high, new report claims
Im going to continue to talk with leadership, talk with members of the Legislature, making sure that we act and provide relief to families through a variety of measures is going to be day one (priority), absolutely, Healey said. Families are heading into a stretch, and are in the midst of a stretch, where theyre really hurting in terms of the cost of living right now, with housing, with gas, with groceries, with just about everything.
Michlewitz separately told reporters that he was very happy with the final product of the economic development bill, though he said lawmakers will continue to discuss their tabled tax cuts in the next session, when theres a new governor in the corner office. Polls show that Healey has a commanding lead over Republican gubernatorial nominee Geoff Diehl, a former state representative endorsed by former President Donald Trump.
I think we need to overall have a better sense of where we are long-term sometime next year related to the economy, Michlewitz said. We definitely certainly want to continue having a dialogue about whats the best way to approach some of the best interests of the middle class.
Frustrated over the revelation of Chapter 62F, House Speaker Ron Mariano in July had broached the idea of postponing or scrapping the tax cap law altogether. Healey, however, said shes not proposing any reforms to Chapter 62F for now.
Its something Id look at further, Healey said. I think theres some more immediate relief things that we need to work on, including some of the tax relief, including whatever remains in terms of economic development opportunities and funding coming out of this session.Read more: Should Springfield be the new Mass. capital? Poll respondents say no
Lawmakers and critics of Chapter 62F have rebuked the regressive nature of the tax. Since refunds are based on an individuals personal income tax liability, the wealthiest Bay Staters will receive hefty returns from the commonwealth, while low-income households will see scant relief.
Michlewitz said lawmakers want to explore modernizing Chapter 62F, which was enacted as ballot referendum during the 1980s. That includes potentially adjusting the formula for how wage and salary growth might trigger refunds, Michlewitz said.
I think were gonna put everything on the table, have a dialogue with the new legislature, obviously with the 200 members of the legislature and the new governor, Michlewitz said. We will make sure that we try to do it in a thoughtful and strategic way.