The Healthy Families EITC Coalition is Deeply Disappointed that Permanent Tax Relief for Families with Low Incomes has Been Removed from Final Economic Development Legislation

This week Massachusetts legislative leaders announced that they had reached an agreement on an economic development package that they state will “help ease the financial strain brought on by challenging economic conditions in Massachusetts and across the country.” While this $3.76 billion investment takes important steps to increase housing production, support hospitals, and address rising energy costs, notably missing is permanent tax relief for families who are struggling to afford basic needs. The Healthy Families EITC Coalition is deeply disappointed that key provisions to expand the state’s Earned Income Tax Credit and Dependent Care Credits were removed from the final package despite receiving unanimous support from the House and Senate in July. By neglecting to prioritize and pass these equitable and permanent tax relief measures this year, the Legislature is missing a key opportunity to provide swift support to those who are being pushed further into financial instability and hardship. At the same time, these families – who are disproportionately families with children and families of color – are largely excluded from the $3 billion of tax rebates currently being distributed, nearly 75% of this tax relief will flow to the top earners in Massachusetts.

People with low and moderate incomes cannot continue to be overlooked, and we should not let outdated and inequitable tax law halt momentum toward providing critical, permanent relief for families to afford basic needs. While deeply disappointed by this announcement, we are encouraged by state leaders’ commitment to revisit permanent tax relief measures early next year. We look forward to working with the legislature and new administration to swiftly pass meaningful and robust tax relief next session that permanently boost incomes for families most in need.