Healthy Families EITC Coalition Statement on Massachusetts Tax Relief Legislation

In July 2022, the Healthy Families EITC Coalition celebrated the unanimous passage of An Act to improve Massachusetts’ Economic Development in the House and Senate. This landmark bill would raise the state Earned Income Tax Credit (EITC) to 40% of the federal credit, providing permanent tax relief for nearly 400,000 families across Massachusetts. Coupled with increases to other tax credits for families with low- and middle- incomes, this tax package is a robust solution to address the needs of the Commonwealth’s families, particularly those who are being pushed further into financial instability and hardship by
the rising cost of living.

Despite united readiness among the state Legislature and Governor to pass tax relief this year, we are deeply disappointed that unanticipated implications of a regressive 1986 tax cap law – which will ultimately benefit middle- and high-income earners – thwarted progress toward passing this key package before the end of the formal legislative session. We cannot let outdated and inequitable tax law halt momentum toward providing critical permanent relief for families to afford basic needs. We urge the legislature to act in informal session to permanently boost incomes for families and invest in other supports that promote equity and prevent hardship. The expansion of the EITC and other tax relief passed in the Economic Development bill would reduce income inequality and provide the greatest aid to families most in need.

People with low incomes cannot continue to be overlooked. The Healthy Families EITC Coalition is encouraged by state leaders’ commitment to pass meaningful and permanent tax relief this year, and will continue to work with the Legislature during informal session to ensure that the EITC is included in final economic legislation.