SPRINGFIELD, Mass. (WGGB/WSHM) — Massachusetts Governor Charlie Baker made a surprise announcement Thursday regarding tax refund checks that may soon be mailed to taxpayers in the state. Maybe over two and a half billion dollars in tax relief.
Western Mass News spoke with a local economics professor who explained what this potential tax relief could mean for Baystate residents.
On Thursday, Governor Charlie Baker announced a likely multibillion-dollar tax refund for Bay State residents by signing the state’s budget.
“We believe the number is north of $2.5 billion that would be in tax refunds for Massachusetts residents,” Governor Baker said.
State lawmakers are still negotiating the details of a separate $1 billion tax relief package ahead of the final days of the official session, and Governor Baker’s announcement comes as tax revenue has increased by 20%.
Western Mass News spoke with a local economics professor, who explained that Governor Baker’s latest announcement stems from a 1986 law passed by voters.
“It really started mathematically because of the amount of money the state collected versus wages and salaries, so I don’t think they know exactly how much people would be getting individually or how it would be distributed,” he said. John. Rogers, professor of economics at American International College.
Professor Rogers told us that more information on these possible tax refunds should be published by September, we asked him what makes this year different from years past.
“The state is doing very well, tax revenue is higher, especially capital gains tax, and so the state is sitting on a big surplus of about $3.5 billion,” he said. explained Rogers.
Rogers also noted that this possible tax relief is separate from the $250 stimulus checks for residents that were just approved by the Massachusetts Senate.
“The state has an extra amount of money that it can help its citizens combat some of these inflationary pressures…You might end up getting a refund on your taxes that you’ve already paid,” Rogers said. .
Governor Baker’s office also said it is currently reviewing options to find the fastest and most efficient way to get this potential financial relief to taxpayers.
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