Governor Baker's administration says more than 3 million taxpayers in Massachusetts could get back around 7% of what they paid in income taxes paid during the 2021 financial year.
Amid the rising inflation rate, the Governor of Massachusetts Charlie Baker's administration is looking into making at least $3 billion accessible to taxpayers, officials in his administration announced.
This happens just as lawmakers across the state continue to hold tax relief talks, given the high inflation rate following the heavy financial drain of the Covid pandemic.
The tabled discussion consists of negotiations over a $1 billion package of tax breaks and rebates by the state lawmakers that seeks to help alleviate the pain of rising inflation.
Now the massive "giving back billions to taxpayers" almost $3 billion could be made possible by a 36-year-old law, just as data showed the economy edging closer to, if not officially, in recession.
The Governor's budget office released estimates indicating that the surplus was close to $2.97 billion -- this figure was reportedly enough to cover at least 3 million taxpayers across Massachusetts.
In other words, someone with a taxable income of $75,000 after deductions and exemptions could receive a $250 refund according to early budget projections that were made available.
At the time of this report being completed, Governor Baker's administration was yet to release its final revenue figures for the 2021 fiscal year that ended June 30 in order to determine exact figures.
An almost four-decade-long voter-approved law in Massachusetts limits state tax revenue growth to the growth of total wages and salaries; if revenue exceeds the "allowable" amount, taxpayers are entitled to a credit equal to the difference.
It remains unclear how much money the state will eventually return to taxpayers. Every September, the state auditor is tasked with determining the final amount from the previous fiscal year.