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Patrick Budget Eliminates 44 Tax Deductions

While specific deductions would end, personal exemptions would double under the Patrick budget.

A recent analysis of Gov. Deval Patrick's proposed budget finds that it eliminates 44 tax breaks that benefit a large slice of Massachusetts taxpayers.

Patrick's $34.8 billion FY2014 budget includes not only a 1 percentage point hike in the income tax – from 5.25 percent to 6.25 percent – but the end of such deductions such as the capital gains from the sale of a person's primary home, college tuition, and contributions to a health savings account.

The analysis, by the Massachusetts Taxpayers Foundation, found that the eliminations would raise an additional $1 billion for the commonwealth.

But Patrick's assistant secretary for fiscal policy, Gregory R. Mennis, told The Republican that that amount would be offset by the doubling of personal exemptions, which benefit all taxpayers. 

Another key aspect of Patrick's plan is the lowering of the sales tax from 6.25 percent to 4.5 percent.

When taking this change, along with the rise in personal exemptions, about half of Massachusetts households – in particular those earning less than $60,000 a year – will see their taxes stay the same or drop, by Mennis' calculations.

"It's important to look at the tax package as a whole," Mennis told The Republican. 

The goal of the budget, Patrick has said, is to make the tax code simpler and fairer, with the tax burden shifting from the lower and middle classes to the more affluent.

The bill is being reviewed by the House, which will release its budget proposal in April. 

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Steven Sadowski February 28, 2013 at 01:57 AM
People get the govt. they deserve. They believed the hype, the war on women, the eat the rich mantra, the govt. can save us meme and now look at us: In debt to our eyeballs, shedding companies and population, scandalized by elected officials being indicted or in jail, and still the people here walk in lock step. I have to give them credit though, they're going down with the ship. Unfortunately, there are a lot of passengers
Vincent DiRico February 28, 2013 at 02:42 AM
Cherry or grape?
Andrew Sylvia February 28, 2013 at 03:27 AM
Careful, Vincent....
Bill Wells February 28, 2013 at 05:02 AM
Can I call him a puppet?
Alex Finnegan April 14, 2013 at 02:58 AM
"People get the govt. they deserve" How can they deserve it when 47% (or whatever it) voted for the other guy. "the eat the rich mantra" I thought you were against subsides? Some of the biggest companies are subsidized. Also, the tax rate on the rich is low, low, low. Go back to the days when Reagan was in office and raise capital gains to regular tax levels. If we are hurting so bad for money why are the taxes on the people who can most afford it the lowest ever (or close to it)

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