BOSTON (CBS) -- Issues like taxation and economic growth are going to be front and center throughout the election year in Massachusetts. Eileen McAnneny, president of the non-partisan Massachusetts Taxpayers Foundation, joined Jon Keller to discuss Gov. Charlie Baker's tax proposals.
The package of tax cuts and changes includes cutting the capital gains tax rate, doubling the estate tax threshold, and increasing tax breaks for seniors, renters, and lower-income filers.
MTF endorsed the move, but Keller asks, will the legislator pass it?
"It is an election year. I think people like tax relief. Secondly, I think that the proposal is balanced. It provides a lot of help to folks at the lower-income spectrum, who have been most impacted by the pandemic," said McAnneny.
She said the package also provides "relief on the short-term capital gains rate because they'll help position Massachusetts for growth in the future which is critically important."
"Massachusetts' economy is based on entrepreneurship and investment and innovation so we don't want to make our tax burden so high that we drive people away from Massachusetts, particularly in this era where people can live and move and be anywhere," McAnneny continued.
The MFT is against the "millionaire's tax," which would put a 4% surtax on income over a million dollars with a threshold that increases with inflation. The money would be earmarked for things like education and transportation, though it's disputed if that can be guaranteed.
Polls show that 70% of the public supports the millionaire's tax.
"I would say that the Baker tax proposal increases the progressivity of our tax code, which is a big thing for the proponents of the millionaire's tax, so it may be looked upon favorably by them. But the issue is it certainly can't be a trade in the sense that the millionaire's tax will go on the ballot," said McAnneny.
Keller @ Large: Part 2
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