Massachusetts
Will $1 billion tax bill make Mass. more competitive? Don’t count on it. – The Boston Globe
Some tax experts say the reforms will do little to spur companies to invest or expand here, or to stem the exodus of residents seen during the COVID-19 pandemic. Massachusetts will remain an outlier with its estate tax and short-term capital gains tax. Just not as big of an outlier as before.
When the pro-business Tax Foundation releases its annual state-by-state ranking in the coming weeks, Massachusetts is expected to fall to 46th place from 34th. That’s because of the “millionaires tax” that voters approved last November, increasing the income tax rate on earnings above $1 million by four percentage points, to 9 percent from 5 percent. The Legislature passed the new tax bill last week, not in time for this fall’s Tax Foundation ranking.
But lead researcher Jared Walczak said it probably won’t matter much anyway. None of the changes will have a significant impact on the Massachusetts ranking, he said, once they get factored in a year from now.
“It does put more in residents’ pockets, though the targeting is not designed around economic competitiveness,” Walczak said of the measure Healey plans to sign amid much hoopla. “To the extent that it’s sold as a package that enhances the state’s overall competitiveness, it’s not so well calibrated toward that objective.”
Consider some of the components (with costs provided by the Massachusetts Taxpayers Foundation):
Estate tax: Of 12 states with estate taxes, Massachusetts ties with Oregon for the lowest threshold before the tax kicks in, at $1 million. And if it does kick in, Massachusetts currently taxes the full estate, including the first $1 million. The Legislature addressed this by raising the threshold to $2 million, and eliminating that “cliff effect,” as it’s known. (These two changes could cost the state $213 million in the second year they take effect.) “I do view it as a concession for the millionaires tax to stop the bleeding a little bit, for people leaving,” said Justin Hannan, a tax expert at the Day Pitney law firm.
Notice that phrase: “A little bit.” Massachusetts is now ahead of only two states: Oregon and Rhode Island.
While Zachary Donah of the Massachusetts Society of CPAs would have preferred a higher threshold, he still argues this will make a meaningful difference. Eliminating the cliff effect, he said, is significant and will particularly help one-time millionaires and others who own valuable assets such as their homes but are otherwise middle class.
Capital gains: The House of Representatives approved a cut in the state’s short-term capital gains rate to 5 percent from 12 percent, while the Senate preferred no change at all. In the end, they sent Healey a compromise: 8.5 percent, at a cost of $65 million a year. As Elizabeth Mahoney, a lobbyist with the Massachusetts High Technology Council points out, this change doesn’t move the needle much, compared with other states. Even at 8.5 percent, Mahoney notes that Massachusetts still has the eighth-highest short-term tax rate in the country — and the second highest, after California, for those who earn enough to pay the millionaires tax surcharge on their gains.
Single sales factor: Massachusetts joins more than 35 other states, by switching how it calculates taxes for multistate companies. Until now, Massachusetts tax collectors use three factors when establishing most multistate companies’ corporate income tax: payroll, property, and in-state sales. Switching to only taxing sales will cost the state $79 million a year but could encourage big corporations headquartered here to add jobs locally, without worrying about a tax penalty. But Walczak said he doesn’t consider this a major improvement in economic competitiveness; a number of big out-of-state companies that do business here could end up paying more in taxes as a result.
Millionaires tax: The tax legislation bars married couples who file federal taxes jointly from filing their state taxes separately as a way to remain below the $1 million threshold for the new millionaires tax. Now, with this bill, couples have to be consistent with their approaches for state and federal taxes. However, the state Department of Revenue recently noted it’s already advantageous for many married couples who are high earners to file their federal taxes separately anyway. This gives them one more reason to do so.
Credits and deductions: The tax package creates a new dependent tax credit, capped at $440 and phased in over two years, at a projected cost of $300 million a year. Renters get an increase in their maximum state deduction, to $4,000 from $3,000, costing $40 million a year. And senior citizens see the maximum tax credit for local property tax payments doubled, to a cap of $2,400, worth $60 million.
Phineas Baxandall, interim president at the left-leaning Massachusetts Budget and Policy Center think tank, says these changes can help with business competitiveness by making this high-cost state somewhat more affordable for workers. But Baxandall argues the money given out for the estate tax and capital gains cuts would be better spent on other competitiveness-enhancing investments such as childcare, affordable housing, or improved transit — instead of going back into high earners’ pockets.
Yvonne Hao, Healey’s economic development secretary, doesn’t seem to mind being 34th in the rankings, considering all of the state’s other strengths. But she worries about falling to the bottom. That said, even if it doesn’t help the ranking all that much, Hao said the $1 billion package sends an important message: “We are here to compete [and] help every person, every business stay and grow here.”
Still, while the state’s leading business groups heap praise on the governor and the Legislature this week, they’re quick to note this package is a great “first step” in changing the state’s tax structure. Translation: They’ll be back on Beacon Hill, asking for more, next year.
Jon Chesto can be reached at jon.chesto@globe.com. Follow him @jonchesto.
Massachusetts
Seven high school sports takeaways from a powerful day packed with more than 250 games – The Boston Globe
Two pitchers walked off the mound without having allowed a hit Wednesday.
North Attleborough’s Dillon Waterhouse struck out four and walked one while tossing a no-hitter to beat Stoughton, 4-0.
East Bridgewater’s Maggie Schlossberg fired five innings of no-hit ball, striking out 13 to mercy rule Rockland, 12-0.
On Tuesday, Littleton senior Brooke O’Brien joined the 200-point club on Tuesday in a 13-10 lacrosse loss to Lunenberg.
Or is it six?
Max Boehm, Wellesley — The sophomore tossed a two-hitter with eight strikeouts, but what stood out was his efficiency, lasting seven innings on just 69 pitches.
Finn Bell and Zach O’Donnell, Wayland — Bell racked up 34 kills, many thanks to O’Donnell, who dished 48 assists in a five-set victory against BC High.
Zach Medjamia and Hank Schwartz, Andover — It was a similar story for the Golden Warriors, who got 25 kills from Medjamia and 32 assists from Schwartz in a 3-1 win over Dracut.
Jill Ondrick, Weymouth — The junior transferred to her hometown high school from Archbishop Williams and made an immediate impact with 17 strikeouts and no walks in the circle, and an RBI at the plate, in a 2-1 Bay State Conference win over Needham.
3. Daily strikeout leaders
Jill Ondrick, Weymouth, 17
Aidan Murphy, Weston, 14
Brayden Mercier, St. John’s (S), 13
Mylee Ramer, Bishop Feehan, 13
Maggie Schlossberg, East Bridgewater, 13
Regan Bryant, West Bridgewater, 12
Tessa Francis, Marblehead, 11
Hayden Haskell, Swampscott, 11
Abby Noble, Gloucester, 11
Riley Chaplin, Notre Dame (H), 10
Olivia Ormond, Belmont, 10
It was a powerful day across the Commonwealth, as no less than 22 hitters connected on a long ball, and we have to start with Milton Academy’s Crowley sisters. Junior Sophia Crowley launched a three-run shot, but was out-done by her freshman sister, Hannah, who blasted a grand slam.
While they were the only sisters to both go yard, they were far from the only teammates. Carver’s Lyla Moore and Gianna Chandler both left the park in an 18-16 loss to Cohasset, King Philip’s Liv Petrillo and Ali Gill went yard in a 9-1 win over Franklin, Gloucester’s Aleena Brown and Emma Carripichosa connected to beat North Reading 10-2, and BB&N’s Langan Fisher and Ryan Clay went back-to-back to beat Cushing, 10-6.
Medfield’s Daniel Vazquez homered (2-run shot) for the second straight game, Durfee’s Alvin Teixeira raced around the bases for an inside-the-park homer, and Bishop Feehan’s Caitlyn Deveney, Wakefield’s Molly Burns, Taunton’s Brooke Aldrich, Danvers’s Addie McCarty, Manchester Essex’s Penelope Riggs, Weymouth’s Devin Kelsch, Cardinal Spellman’s Kiley Dolan, Saugus’s Lily Gentry, and Olivia Mainvielle of Notre Dame (Hingham) also recorded homers.
5. Daily lacrosse leaderboards
Colin Fuller, Newburyport 6
Ava Miller, South Shore, 6
Luke Spaulding, Scituate, 6
Vinn Winter, Ipswich, 6
Karina Bosco, Dighton-Rehoboth, 5
Reese Bromby, Newburyport, 5
Lily Leander, Rockland, 5
Ava Nason, St. Mary’s, 5
Finn Wright, Ipswich, 5
Andrew DeGirolamo, Mansfield, 4
Quinn DeCourcey, Scituate, 4
Liam Goodwin, Duxbury 4
Cole Hogencamp, Mansfield, 4
Kayla Nota, South Shore, 4
Avery Tahnk, Newburyport, 4
Ben Tondorf, South Shore, 4
Wright, Ipswich, 9
Hogencamp, Mansfield, 8
Fuller, Newburyport, 6
DeCourcey, Scituate, 6
Miller, South Shore, 6
Spaulding, Scituate, 6
Winter, Ipswich, 6
Lincoln-Sudbury junior center Sarah Poland announced she will reclassify into the Class of 2027 and play for Rivers next school year. The 6-foot Dual County League co-MVP (with Westford’s Kaitlyn Pepin) averaged 16.8 points, 6.4 rebounds, 2.3 steals, and 1.8 assists last season.
Waltham senior goalie Brooke Gaudet committed to Lasell where she will play field hockey and major in athletic training.
Richard Davis, who for years produced the Massachusetts High School Football Prospects Information book with Bob Bancroft, died on March 27 at age 80. Davis — who was voted into the Massachusetts High School Football Coaches Association Hall of Fame in 2021, becoming the only non-coach to be inducted — made sure every dollar raised from the recruiting book went to the Shriners Hospital in Boston. Davis was a longtime business teacher at Whitman-Hanson and in retirement worked part-time at Holly Ridge Golf Club in Sandwich.
Brendan Kurie can be reached at brendan.kurie@globe.com. Follow him on X @BrendanKurie.
Massachusetts
Massachusetts police chief who denied a resident’s license to carry firearms wins appeal
A local police chief who rejected a resident’s bid for a license to carry firearms, claiming the man was “unsuitable” to obtain an LTC, has won his appeal.
The then-Southboro Police Chief Kenneth Paulhus during the pandemic denied Paul Dwiggins a Class A large capacity license to carry firearms.
That decision from the police chief was then reversed by a district court judge, which was later affirmed by a Superior Court judge.
But now, Massachusetts Appeals Court justices reversed the previous court rulings, and they reinstated the police chief’s decision to deny the resident’s LTC.
“The judgment of the Superior Court is reversed, and a new judgment shall enter affirming the denial of Dwiggins’s license to carry,” the appeals court justices wrote in Wednesday’s ruling.
Back in September of 2020, the police chief rejected Dwiggins’ application for the large capacity license to carry firearms on grounds that he was “unsuitable” to obtain such a license.
The police chief, Paulhus, cited more than 80 police contacts with either Dwiggins’ son or wife over the previous 14 years. Many were for incidents of domestic violence at their house, and many of these contacts were for mental health crises involving his wife.
One of the police reports involved Dwiggins getting into a dispute with his 15-year-old son, who reportedly had a serious substance abuse history and was a drug dealer.
His son had come home drunk and become combative after Dwiggins told him he couldn’t have a sleepover, according to the police report. Dwiggins said his son had pushed him, while the son said his father had grabbed him first.
His son then picked up a kitchen knife, according to Dwiggins who told police that his son said, “He was going to go to his room and hold the knife to his throat so if his mother wanted to kill him he would make it easier for her.” Dwiggins said he then knocked the knife out of his son’s hands.
Another police report involved a different incident with a knife. Dwiggins’ son, after a physical altercation with his brother, reportedly picked up a knife and threatened to kill his brother.
Cops arrested the son, and the son while in custody said he wanted to take his own life by shooting himself with a gun.
Another incident involved Dwiggins’ wife being arrested. As the officers arrested her, she remained combative, kicking one of the officers and continuing to scream profanities at them. When the officers finally brought her to the police station, she threatened one of the officers, saying, “If I had a gun right now I would blow your head right off.”
There were also multiple police reports responding to incidents related to both the son’s and the wife’s use of alcohol and other substances.
In the chief’s notice to Dwiggins denying his application, the chief noted that he was deeming the applicant an unsuitable person to obtain a license for the following reasons: “Persons residing in your household with histories of substance abuse, criminal behavior, and mental health issues. After a review of the involved police reports, I have found you to be unsuitable.”
After the district and superior court judges reversed the police chief’s decision, the chief brought the appeal to the Massachusetts Appeals Court.
Dwiggins argued that he shouldn’t be denied a license because he said the chief’s decision about “unsuitability” was not about the applicant’s own behavior.
“We note, however, that the police reports on which the chief relied in finding the applicant unsuitable do include evidence of the applicant’s own behavior,” the appeals court wrote. “The applicant was involved in at least one incident of domestic violence in his home.”
“The chief was within his authority when he determined the applicant may create such a risk by bringing a firearm into the volatile, unstable, and violent environment of his residence, to which multiple police responses for domestic violence, substance use, and mental health have been required year after year after year,” the judges added.
One of the appeals court justices wrote a dissenting opinion, arguing there was insufficient evidence that Dwiggins himself posed a risk to public safety.
“… I find no case law suggesting that an unsuitability determination can be based on the conduct of third parties,” wrote Associate Justice Kenneth Desmond Jr.
“While I too believe that there is some wisdom in the chief’s public safety concerns, a plain reading of the statute leaves me unpersuaded that the majority’s interpretation of its language is correct,” Desmond added. “As such, I respectfully dissent.”
BASEBALL
Arlington Catholic 12, Ipswich 2
Bishop Stang 12, Nauset 2 (5i)
East Boston 12, Excel Charter 2
Holliston 7, Hopkinton 4
Hull 22, West Bridgewater 4
Lincoln-Sud. 10, Wachusett 1
Malden 12, Lynn Tech/KIPP 3
Newburyport 7, Marblehead 6
Newton So. 4, Newton No. 1 (9i)
New Mission 11, TechBoston 6
Shawsheen 10, Mystic Valley 0
Swampscott 12, Northeast 7
Whit.-Hanson 5, Bridge.-Rayn. 2
GIRLS GOLF
Wellesley 4.5, Braintree 1.5
BOYS LACROSSE
Apponequet 20, Middleboro 6
Boston Latin 10, Medford 6
Holliston 10, Norwood 4
Littleton 12, Hudson 4
Manch. Essex 5, Swampscott 4
Needham 17, Weymouth 1
Reading 14, Burlington 3
Shawsheen 14, Gr. Lowell 1
Wellesley 4, Milton 3
Weston 16, Arlington Catholic 5
Whittier 18, Lowell Catholic 5
GIRLS LACROSSE
Arl. Catholic 12, Lowell Cath. 3
Apponequet 18, Middleboro 3
Chelmsford 11, Longmeadow 6
Hull 7, Plymouth South 6
Newton South 10, Ursuline 8
North Andover 12, Methuen 7
Sandwich 20, Nauset 4
Swampscott 15, Lynnfield 9
Tewksbury 15, Danvers 7
Walpole 20, Braintree 4
Westwood 12, Franklin 6
OYS TENNIS
Bishop Feehan 4, St. John’s (S) 1
Bromfield 4, Littleton 1
Hopkinton 5, Holliston 0
Somerset Berkley 5, Durfee 0
Wellesley 5, Milton 0
GIRLS TENNIS
Card.Spellman 5, Arl. Catholic 0
North Middlesex 3, Monty Tech 2
North Reading 5, Lowell Cath. 0
Wellesley 3, Milton 2
SOFTBALL
Abington 3, Whitman-Hanson 1
Bridge.-Rayn. 15, Plymouth No. 1
Bristol-Plymouth 19, Nauset 2
Dennis-Yarm. 22, M. Vineyard 3
East Boston 17, O’Bryant 15
English 23, Brooke Charter 10
Fenway 33, Charlestown 15
Hopkinton 11, Holliston 0
Marshfield 12, Hanover 8
Stoughton 17, Sharon 3
Wayland 19, Melrose 5
Westport 18, Norfolk Aggie 6 (6i)
BOYS VOLLEYBALL
Acton-Boxboro 3, Boston Latin 0
Brockton 3, Hingham 1
Cambridge 3, Lowell 2
Essex Tech 3, Salem 0
Gr. Lowell 3, Lowell Cath. 1
Hopkinton 3, Norwood 2
Lexington 3, Woburn 0
Lynn Tech 3, Salem Acad. 1
Needham 3, Natick 1
St. John’s Prep 3, Wayland 2
Winchester 3, Arlington 2
Originally Published:
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