Statement on Governor Baker’s Sales Tax Holiday Proposal

“MassBudget holds a vision of an economically and racially just Commonwealth, one that is supported by fair and forward-thinking state tax and budget policy. Seen through that lens, the Governor’s proposal to suspend the state’s sales tax for August and September presents challenges. On the one hand, shifting our state tax system away from taxes like the sales tax, that fall most heavily on low-income households, makes good sense.  Unfortunately, spending the surplus this way forecloses  the ability to make investments that will transform opportunities for everyone in our Commonwealth – particularly for our low-income and BIPOC communities.

For instance, the tax dollars the Commonwealth would lose from this 2-month sales tax holiday could support local schools by accelerating funding for the Student Opportunity Act, provide opportunities for affordable childcare that will help businesses  and families, and encourage travel by enabling transit authorities to stop collecting burdensome bus fares. These and many other options exist for lawmakers to better target support to those communities and businesses in greatest need.”

Related

The Governor’s 2023 Budget Proposal: Last Chance for a Lasting Legacy

Governor Baker submitted his last state budget as Governor of the Commonwealth last week, and this Fiscal Year (FY) 2023 budget is not all that …

Read More →

At a Crossroads Created by COVID: Executive Summary

At a Crossroads Created by COVID: Families Moving Along the Road to Opportunity in Massachusetts Executive Summary Read the full report here. PART 1: THE …

Read More →

At a Crossroads Created by COVID: Families Moving Along the Road to Opportunity in Massachusetts

The Promised Destination Uncovering Roadblocks Communities in Transit Commonwealth at the Crossroads A Roadmap Forward PART 1: THE PROMISED DESTINATION. The road to opportunity in …

Read More →
Scroll to Top

Get news from Massachusetts Budget and Policy Center in your inbox.