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Boston's Morning Newsletter
Bill Galvin wants Mass. lawmakers to tinker with the new 'millionaire's tax'
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TGIF! There’s a chance we see our first snowfall of the season this weekend. (Shhh, Worcester County, we know you already got yours!) And while it may not require a shovel east of I-95, the forecast does call for a NWS snow map!
Just a month after Massachusetts voters approved a 4% tax hike on income over $1 million a year, Secretary of State Bill Galvin is proposing some tweaks. Galvin is asking fellow Democrats in the Legislature to create an exemption to the new constitutional amendment so that the tax doesn’t apply to the one-time profits of “income-limited” elderly residents who sell their primary homes.
- Why? The net profits of homes sales (that means the sale price minus what was originally paid) count as taxable income and could push some residents over the $1 million threshold in a given year. It’s not a big number. Even with the state’s high housing prices, experts say a tiny fraction of home sales generate such big profits. Plus, the first $250,000 of those gains ($500,000 for married couples) are untaxed. Still, Galvin worries that the new tax might hurt older residents who were planning to downsize to fund their retirement. With the law set to take effect on New Year’s Day, he says “immediate action” is needed.
- What exactly does “income-limited” mean? The exact details haven’t been ironed out, but Galvin is floating the general concept before Gov.-elect Maura Healey takes office.
- Counterpoint: Supporters of the tax argue that the number of affected homes is so small that Galvin’s proposal is unnecessary. “We’re talking about the largest mansions and vacation homes, not middle class homes — even those that have appreciated in value over the years,” Andrew Farnitano, a spokesman for the coalition that backed the tax, told WBUR’s Yasmin Amer.
- Would Healey and other State House leaders be open to tinkering with the new law? They’re not saying anything definitive yet.
Recount drama: Democratic candidate Kristin Kassner now holds a one-vote lead over five-term incumbent Republican state Rep. Leonard Mirra following a hand recount in the North Shore race. (Election night results showed Mirra with a 10-vote lead.)
- It still may not be over. Mirra told State House News Service he plans to challenge the result in court, arguing against the validity of a few individual votes in places like Rowley and Ipswich.
Has it felt like everyone you know and their kid has a cold? That’s because flu season has arrived in a big way. Boston health officials say there were over 700 cases reported in the city last week alone — with nearly 60% of cases among children and teens. The rise comes as pediatric hospitals are already being slammed with RSV patients.
- In related news: Federal officials approved on Thursday the updated omicron COVID-19 vaccines for kids as young as 6 months old — but just who is eligible depends on how many vaccinations they’ve already had and which kind. Here are the details. (Flu shots are also available for those as young as 6 months.)
Heads up, Red Liners: The MBTA is suspending train service this weekend between Harvard and Park Street for track work. That means — you guessed it — shuttle buses along the five-stop stretch.
- Honestly, the Red Line could use the work. According to the nonprofit TransitMatters, the total delay from slow zones along the line has risen to nearly 20 minutes this fall — the most since the aftermath of a 2019 Red Line derailment.
- What’s next: As Dig Boston reported last month, the MBTA has doubled its five-year shuttle bus budget, with signs pointing toward more big diversions in the coming year.
P.S.— Massachusetts was ranked by an advocacy group this week as one of the worst states in the nation for something. Do you know the answer? Take our Boston News Quiz and test your knowledge on the stories we covered this week.
