Tax(relief)achusetts

Feb 28, 2023

Presented by Save Our Benefits Massachusetts

LOW RISK, HIGH REWARD — Welcome to Massachusetts, where the Democratic governor is being heralded by business and conservative groups and harangued by progressives over a tax-relief plan that's bigger than her Republican predecessor’s.

Maura Healey says her $742 million tax-code overhaul, which could eventually cost closer to $1 billion annually, aims to make Massachusetts more “competitive” and help “those who need it most.”

It also looks to appease a business community that’s been wary about having a Democrat back in the corner office.

Healey surprised Democrats on and off Beacon Hill by pitching an expansive tax-relief package that surpasses former Gov. Charlie Baker’s in scope and in cost. She's calling for a $3 million estate-tax threshold, up from the $2 million marker floated last year. And she's reviving a part of Baker's plan that lawmakers nixed: taxing short-term capital gains at 5 percent rather than 12 percent.

Healey is creating room for negotiation over what she proposed and what she didn't. The governor didn’t include several measures that had support in the Legislature last year, like expanding the Earned Income Tax Credit. But she said “nothing is off the table.”

She’s also giving herself some cover by setting up the Legislature to take the blame if her more business-friendly provisions don’t come to pass.

But her political calculus is pissing off some progressives who feel Healey is undermining the millionaires tax she supported by cutting the wealthy a few breaks. Progressive activists and lawmakers see some provisions they like: a $600 tax credit for some people with dependents and a $1,000 bump in the rent deduction cap among them. But they also argue those don’t go far enough in an increasingly unaffordable state.

Healey has nearly four years to make it up to them. And the governor isn’t giving her business buddies everything they want, either. Industry groups, for instance, wanted the estate-tax threshold to rise to $5 million.

GOOD TUESDAY MORNING, MASSACHUSETTS. While Healey’s tax-relief plan will test her relationships with the Legislature, today’s storm — potentially the biggest of this so-far mild winter — will test her nascent administration in a different way.

Healey has been spared the blizzard(s) that battered the Baker administration in its early days and haunted him until he left. And today’s weather system is shaping up to be more of a run-of-the-mill snowstorm than a true winter wallop.

Still, Healey has ordered non-emergency executive employees to stay home. And she’s fulfilling her gubernatorial duty to hold a press conference on storm logistics in front of a salt pile.

TODAY — Healey and Lt. Gov. Kim Driscoll talk storm prep at 10 a.m. at a MassDOT Highway Division property in Weston. Rep. Ayanna Pressley and Sen. Elizabeth Warren join a “People’s Rally for Student Debt Cancellation” at 8 a.m. outside the Supreme Court.

Tips? Scoops? Budget predictions? Email me: lkashinsky@politico.com.

A message from Save Our Benefits Massachusetts:

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DATELINE BEACON HILL

— PRICING OUT HEALEY’S PLAN: Gov. Maura Healey’s new tax-relief package would reduce tax revenue by $859 million this coming fiscal year. And that number could balloon to nearly $1 billion once changes to the estate tax take full effect, a three-person Boston Globe team reports.

GBH News’ Katie Lannan has more details on what’s in Healey's proposal, from expanded commuter benefits to incentives to boost local cider and wine sales. And MassLive’s Alison Kuznitz has the reaction from top Democratic lawmakers, who seem open to pursuing tax relief despite still-looming economic uncertainty.

Gov. Maura Healey, House Speaker Ron Mariano and Senate President Karen Spilka

From left: Gov. Maura Healey, House Speaker Ron Mariano and Senate President Karen Spilka after their leadership meeting on Feb. 27, 2023. | Lisa Kashinsky/POLITICO

FROM THE HUB

— “‘Abolish’ the BPDA? Not so much with current proposal, officials say,” by Sean Philip Cotter, Boston Herald: “‘Abolish’ the BPDA? Try ‘consolidate.’ And that new city planning department? Well, look for that next year. Top officials from the Boston Planning & Development Authority showed up to an eyebrow-raising City Council hearing to testify in favor of Mayor Michelle Wu’s high-profile proposal to begin the process toward her longstanding call to ‘abolish the BPDA.’ But in that hearing, the quasi-independent city agency’s top two officials and one of their lawyers attempted to downplay the scope of the proposal, avoiding the word “abolish” in favor of ‘consolidate,’ presenting this as a move to just bring the two wings of the organization closer together.”

— “Landlord group sues for emails related to Boston's rent control proposal,” by Walter Wuthmann, WBUR: “A trade group representing landlords is accusing the city of Boston of shielding emails related to Mayor Michelle Wu's new rent control proposal. Cambridge-based MassLandlords filed a lawsuit in Suffolk Superior Court Friday asking that a judge order the city to turn over emails between members of the mayor's rent stabilization advisory committee.”

Wu accused rent-control opponents of “fearmongering” during an interview on WBUR, saying the group behind the lawsuit and another that’s launched a $400,000 advertising campaign against her plan aren’t evaluating the proposal on its merits.

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TODAY'S SPECIAL (ELECTION)

— SOUTH COAST SPECIALS: Voters are heading to the polls in Attleboro to pick a mayor to replace now-Bristol County Sheriff Paul Heroux. The winner of the four-person race between Acting Mayor Jay DiLisio, Timothy Barone, former City Councilor John Davis and City Councilor Cathleen DeSimone will immediately be up for reelection in November.

Over in New Bedford, the special election for Ward 3 city councilor is ending today under a cloud of controversy: progressive groups backing Carmen Amaral have accused her opponent, Shawn Oliver, of making “hateful” social media posts, according to New Bedford Light’s Arthur Hirsch.

— SAVE THE DATE: Special elections for the 9th and 10th Suffolk state House seats being vacated by Jon Santiago and Ed Coppinger will be held on May 30, with primaries on May 2. Joining the list of potential successors for Coppinger is Garrett Casey, policy director and counsel to state Sen. Cindy Creem and a member of the Boston Ward 19 Dems.

— DEBATE DAY: Candidates vying to succeed Lt. Gov. Kim Driscoll as Salem mayor attend a forum at 7 p.m. at Salem State University.

PARTY POLITICS

— DEMS IN DISARRAY: Framingham Democrats remain divided over whether Michael Hugo should continue as city committee chair after his mangled remarks about children with disabilities during a recent abortion debate shook the community, spawned national headlines and prompted an antiabortion group to call on him to resign. The Democratic committee disavowed Hugo’s comments during a Sunday meeting. But a motion to consider removing him as chair failed after an emotional debate. Hugo has publicly apologized for his remarks but says he won't step down.

A message from Save Our Benefits Massachusetts:

FROM THE DELEGATION

— “China Panics in Email Over U.S. Delegation’s Trip to Taiwan,” by Shannon Vavra, Daily Beast: “Beijing is already enraged over the latest American Congressional delegation to visit Taiwan, The Daily Beast has learned. China sent a letter at the conclusion of a Congressional trip to Taiwan to Rep. Jake Auchincloss (D-MA) to express ‘serious concern’ about the visit, which he made alongside Reps. Ro Khanna (D-CA), Tony Gonzales (R-TX), and Jonathan Jackson (D-IL).”

— “Consumer bureau future at stake as Supreme Court takes up funding challenge,” by Katy O’Donnell, POLITICO: “The Supreme Court said Monday it will take up a challenge to the way the Consumer Financial Protection Bureau is funded, in a case that could sharply curtail the agency’s power and jeopardize its previous actions. … Sen. Elizabeth Warren (D-Mass.), who is credited with conceiving of the bureau and helping set it up, noted that the funding structure has survived previous legal challenges.”

DAY IN COURT

— “Ex-cardinal McCarrick tells Massachusetts court he’s incompetent for trial,” by Douglas Moser and Michelle Boorstein, Washington Post: “Five years after allegations of child sex abuse against then-Cardinal Theodore McCarrick first surfaced and rocked the U.S. Catholic Church, attorneys for McCarrick, 92, said Monday that he’s no longer mentally competent to stand trial and that the charges should be dismissed.”

— "Lawsuit filed in Chelsea Soldiers’ Home deaths from COVID," by Shelley Murphy, Boston Globe: "Army Staff Sergeant Joseph 'Red' Terenzio helped rescue more than two dozen fellow soldiers from enemy territory while serving in the South Pacific during World II, despite being wounded. Maurice 'Master Chief' Poulin served in the Coast Guard for 24 years, participating in nine invasions during World War II. And John Sullivan enlisted in the Navy after graduating high school and served as a second class machinist mate during the Vietnam War. All three men died in spring of 2020 of COVID-19 after contracting the virus at the Chelsea Soldiers’ Home during the early days of the pandemic. On Monday, their families filed a class-action civil rights lawsuit in US District Court in Boston against former and current state officials alleging that they caused the 'premature and preventable deaths' of the three veterans and at least 28 others."

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THE LOCAL ANGLE

— "School Committee: State must investigate financials surrounding proposed city charter school," by Jeff A. Chamer, Telegram & Gazette: “With a single item on the agenda, Worcester Public Schools leaders gathered on the fourth floor of the Durkin Administration Building to call for an investigation into the financial arrangement between Old Sturbridge Village, Old Sturbridge Academy, and the proposed Worcester Cultural Academy. The School Committee voted unanimously at Monday afternoon’s special meeting to call upon the State Auditor, Office of the Inspector General, as well as the State Ethics Commission to look into the matter.”

— “New Bedford offering $5,000 sign-on bonus to new police officers,” by Anastasia E. Lennon, New Bedford Light: “The mayor and police chief are hoping they’ve hit on a way to lure more police officers to the city’s depleted force — a $5,000 sign-on bonus. … The Bristol County Sheriff’s Office is another local agency trying the same tactic. A banner on the Ash Street Jail has been advertising a $1,500 sign-on bonus for correction officers.”

— “MIT researcher attacked for work on COVID-19 origin feels 'validated' after DOE report,” by Mike Sullivan, WBZ: “The Department of Energy believes with low confidence that the COVID-19 outbreak started from a lab leak in Wuhan. A local researcher has been pushing the United States to investigate the lab for more than a year. Her remarks have led to threats and harassment.”

A message from Save Our Benefits Massachusetts:

For nearly 50 years, federal law and legal precedent has prevented state legislators from preempting federal laws governing self-funded ERISA plans. Health plans are offered by employers, labor-management trusts as well as local, state and federal governments. With roughly 60 percent or more of the health plans offered by ERISA protected entities, these protected plans could expect consistency across state lines and a fair regulatory climate.

Now, lobbyists for Big Pharma and independent pharmacists are looking to increase their profits by ignoring federal law and undermining the cost-savings in self-funded plans. Save Our Benefits Massachusetts is ready to help you fight back against rising costs. Please, Join our coalition today and help us keep health benefits affordable and accessible for employers, employees and unions.

HEARD ‘ROUND THE BUBBLAH

TRANSITIONS — FIRST IN PLAYBOOK: Baker administration Health and Human Services Secretary Marylou Sudders is joining Smith, Costello and Crawford as a senior policy adviser focused on health care and public health issues. She starts Wednesday.

— Steffanie Brady is now SVP and CIO at the Federal Reserve Bank of Boston. She most recently was CFO at the bank.

— Ashley E. Randle is now commissioner of the state Department of Agricultural Resources. She was previously deputy commissioner.

— Former Massachusetts Taxpayers Foundation President Eileen McAnneny has been named a senior fellow at the Pioneer Institute.

HAPPY BIRTHDAY — to former state environmental affairs secretary and current Fisheries and Wildlife Board Vice Chair Bob Durand, POLITICO’s Charlie Mahtesian, Ben Gundersheimer and Li-Dor David.

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