Tax rebate checks could be heading to Mass. residents
SPRINGFIELD, Mass. (WGGB/WSHM) -Massachusetts Governor Charlie Baker made a surprise announcement about tax rebate checks Thursday that may soon be going out to taxpayers in the state. Possibly more than two and a half billion dollars in tax relief.
Western Mass News spoke with one local economics professor who explained what this possible tax relief could mean for people here in the Baystate.
On Thursday, Governor Charlie Baker announced a probable multi-billion dollar tax rebate for people in the bay state as he signed the state budget into law.
“We think the number is north of 2.5 billion dollars that would be in tax rebates to the people of Massachusetts,” Gov. Baker said.
State lawmakers are still negotiating the details of a separate $1 billion package of tax breaks ahead of their final days of the formal session, and Gov. Baker’s announcement comes as tax revenues are up 20 percent.
Western Mass News spoke with one local economics professor, who explained that Governor Baker’s latest announcement comes from a 1986 voter-passed law.
“It really kicked in mathematically because of the amount of money that the state has collected in relation to the wages and salaries, so I don’t think they know exactly how much people would get individually or how it would be distributed,” said John Rogers, professor of economics at American International College.
Professor Rogers told us that more information about these possible tax rebates should be released by September, we asked him what makes this year different than years past.
“The state is doing very well the tax revenues are higher particularly the capital gains tax and so the state is sitting on a big surplus something like $3.5 billion in surplus,” Rogers explained.
Rogers also noted 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 to combat some of these inflation pressures...You may wind up getting a refund on your taxes that you already paid,” Rogers said.
Governor Baker’s office also mentioned that they are currently looking at options for the quickest and most efficient way to get this possible relief money to taxpayers.
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