Gov. Maura Healey has placed meaningful tax reform atop the policy agenda this session, with a $987 million package that was filed in conjunction with her inaugural budget. As we laid out in a recent report, significant tax relief is not only affordable, but even more critical than it was a year ago.

In 2022, Massachusetts was primed for its first major tax relief bill in years. After an initial proposal by the Baker administration, House and Senate legislative leaders coalesced around a package of $500 million in one-time tax rebates and $500 million in ongoing tax cuts. Unfortunately, in spite of broad consensus, ongoing tax relief never made it over the finish line, a victim of end-of-session fiscal drama brought about by statutorily required tax refunds.

Since then, three economic and fiscal factors have materially altered in Massachusetts and each factor makes the case for tax cuts even more compelling.