The recently passed and signed into law “Tax Relief Bill” holds several positive changes to our state tax code. However, there is one provision that we should all be aware of. Chapter 62F was passed in 1986 by the citizens of the Commonwealth requiring politicians to return all “excess” tax collections back to the taxpayers who paid them, proportional to how much they paid in taxes.
Makes complete sense, right? The taxpayers could do whatever they wanted with that excess payment refund (their money) They could save it, pay off bills, purchase something they need or want, or contribute to a charity.
The new tax code changes all of that. When the taxes collected from you and me now exceed what is needed by the state, the refunds will not be returned proportionally, they will be redistributed to every taxpayer in the same amount, regardless of what they paid in taxes. Call this a “Freebie”, “State-sponsored welfare”, “redistribution of assets”, “Power Grab”, or whatever you want, but it is yet another example of politicians on Beacon Hill operating with no checks and balances in a one-party-rules-all system.
The refund of the taxes you have paid ought to be used in a manner that you decide, not redistributed by politicians on Beacon Hill.
What can you do? Get involved & make a difference. Vote, run, contribute, or Call your State Rep and State Senator. They will listen.
Jim Mirabile
Jim Mirabile is the Chair of the Hopkinton Republican Town Committee
Thanks Jim, for bringing this to our attention. While the Boston Globe has some great content, it is not always balanced. Sometimes certain issues get quietly set aside. To add to your point, there is the recent “millionaire’s tax” that has only accelerated the flight of wealthy people to New Hampshire, Florida, and other low tax states. And the inheritance tax “fix”? Well, it took us from having the highest inheritance tax in the country to “only” the third highest. Really? And the politicians are calling that tax reform?
My wife and I recently viewed a condo at Tuscan Village in Salem, NH. When speaking to the realtor, I asked her if she has noticed an uptick in the number of people from MA who are looking in NH to avoid the high tax burden in MA. She replied “Are you kidding? It is a flood of people. Business has never been better!” It is a sad fact that the more successful you are in life, the more this state punishes you.