HYANNIS – Governor Charlie Baker is urging state lawmakers to take up tax breaks for seniors amid record gas prices and rising economic inflation.
Baker said that his proposal plan would provide $700 million in tax relief to support those on fixed incomes, renters and residents who care for older adults or children.
“People everywhere are obviously facing rising prices and pressures from inflation. According to the Consumer Price Index, inflation rose by 8.6 percent in the United States during May. That’s the fastest rate of growth for inflation ever recorded,” said Baker.
He said that the Commonwealth could afford the breaks, as despite the COVID pandemic and current economic challenges, Massachusetts has an all-time high balance in its stabilization fund.
“Earlier this month, we announced we will deposit almost $2 billion into the state’s rainy day fund due to stronger-than-expected capital gains tax revenue which will drive the value of the Stabilization Fund to $6.6 billion, its highest level ever by a wide margin,” said Baker.
Baker’s proposal has also received support from State Director of AARP Massachusetts Mike Festa.
He said AARP urges measures such as tax credits, doubling the maximum Senior Circuit Breaker Credit and increasing the rental deduction cap.
The Massachusetts Association of Councils on Aging Interim Executive Director Betsy Connel also voiced support for the measures.
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