The Massachusetts Senate today Tuesday passed a measure that would cancel expected tax cuts in order to boost an antipoverty program.
The state’s Earned Income Tax Credit is a cash bonus the government gives eligible low-wage workers. Both Senate Republicans and Democrats argued for expanding the program.
"This is a shared goal," said Democratic Sen. Ben Downing of Pittsfield. "And we certainly all in this body want to make sure all hard working people — no matter the district they live in, no matter the corner of the Commonwealth they live in — that they have the ability to make the most of their God-given talents."
The catch? Senate Democrats want to pay for the expansion by permanently freezing the income tax rate at 5.15 percent. Republicans argue this would directly contravene the will of the voters, who in 2000 voted to gradually bring the tax rate down to 5 percent.
Gov. Charlie Baker also wanted to increase the earned income tax credit. But he wanted to fund it by eliminating the state's film tax credit — which was a no-go for lawmakers.
