Feeling the pain at the pump and the grocery store? The state legislative leadership is proposing onetime payments of $250 for individuals and $500 for couples under an economic relief package unveiled on Thursday by top Democrats, the State House News Service reported.
According to the report, the Taxpayer Energy and Economic Relief Fund would pay $250 to qualifying Bay Staters who filed individual tax returns and $500 for married taxpayers who filed joint returns. The state is sitting on a $3.6 billion surplus.
“Whether it is the rising price of gas, groceries, or summer clothes for kids, the Massachusetts Legislature has heard loud and clear that increased costs due to inflation have cut into family budgets,” House Speaker Ronald Mariano, Senate President Karen Spilka, House Ways and Means Committee Chair Aaron Michlewitz, and Senate Ways and Means Committee Chair Michael Rodrigues said in a joint statement, the news service reported. “That is why we are proud to announce that the Massachusetts Legislature will act to establish the Taxpayer Energy and Economic Relief Fund, through which economic relief rebates for individuals and families will be issued.”
Individual taxpayers who reported earning between $38,000 and $100,000 in annual income in 2021 will be eligible. For married couples, the minimum annual income to qualify would also be $38,000, and the maximum would be $150,000, the news service reported.
The rebates would be issued to qualifying taxpayers by Sept. 30, according to the report.
In a text message to The Times, state Rep. Dylan Fernandes, D-Falmouth, said he would have to take a closer look at the parameters, “but if it comes up for a vote, I’ll likely support it.”
It’s unclear whether Gov. Charlie Baker would support the move. State Republicans have been pushing for a suspension of the gas tax to help beleaguered motorists.
This is not a good idea for the state to give away what are essentially Covid relief funds from the federal government. Yes, we all suffered, but, those funds are intended to offset other costs incurred or revenue shortfalls experienced by the state and the municipalities, and to harden our infrastructure for future pandemics. I can appreciate the thought, especially in an election year, to give a token amount back to lower income taxpayers to help them when inflation has surged. The proposal gives funds back to middle income households, which is really electioneering. Excess state funds have so many other much higher pockets of need such as affordable housing, investments in handling our waste stream, including upgrading or installing wastewater treatment systems (large scale and on site), installing solar panels on as many state buildings as possible as fast as possible, more high speed internet availability (at reasonable costs or free to the poor) when we all may again be required to work remotely, reducing medical expenses (insurance or otherwise), safe roads and bridges and keeping public transit available and affordable, pay down the unfunded portion of the state pension debt, or even to simply pay down the general state debt as interest rates rise. The Mass gas tax (like the federal) is not a percentage amount as a sales tax typically is and has not brought in enough revenue for transportation infrastructure needs since it was re-fashioned in the 1970’s as I understand it.
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