To the Editor,
This month, I co-sponsored a bill with my house colleague Representative Mike Connolly that would cap Ch. 62F tax credits at $6,500 and evenly redistribute the resulting excess to all other eligible taxpayers.
Under our bill, 99.4 percent of income-tax payers would get a larger refund check next month. We proposed setting the refund limit at $6,500 because that is the anticipated refund that will go to someone with $1 million of income in 2021.
Some background: In 1986, Massachusetts voters approved a ballot question that sets a revenue-growth limit for the Commonwealth and returns any excess funds to income-tax payers. The 62F limit was triggered the next year, in 1987, in the amount of $29 million. The law wasn’t triggered again and was largely forgotten over the next 35 years, as the state has repeatedly cut income taxes and other taxes, rendering the revenue-growth limit largely irrelevant.
Fast forward to 2022, and the law has been triggered again, this time in the amount of $2.94 billion. The law wasn’t triggered as a result of any tax hike — instead, it’s been triggered due to underlying problems in the economy, such as inflation and income inequality, as well as other unforeseen factors such as pass-through revenue, of which $2.25 billion has yet to be accounted for.
Our legislation, HD.5394, “An Act Putting More Money In More People’s Pockets,” honors the 1986 law and authorizes Governor Baker’s plan to distribute $2.94 billion in tax refund checks next month. Our legislation proposes one modest change: a cap on the size of checks that would go to those with incomes greater than $1 million. The resulting excess monies would be redistributed to eligible taxpayers who earn less than $1 million. This means an additional $200 refund to approximately 3.6 million taxpayers. The $200 would be in addition to the 13% refund on 2021 state income taxes that is due under the original provisions of 62F.
I believe our proposal strikes the right balance by honoring the mandate to return $2.94 billion to the taxpayers, while doing more to ensure that more residents see a larger refund in this time of rising inflation, significant economic stress, hardship, and uncertainty.
It is my duty as a legislator to represent all the people of the Fourth Essex district, help those who need it most and make better policy for the people of Massachusetts. Updating 62F will provide a generous and unanticipated refund to the financially well off while putting extra money into the hands of those who need it most — the working poor, struggling families, and our seniors.
Yours in service,
Jamie Belsito
Massachusetts State Representative
4th Essex District
