Bill > S1974

This bill proposes to establish an "alignment surtax" of 3.5% on Part C taxable income in Massachusetts, effectively changing the tax structure for capital gains. The bill amends existing laws in chapter 29 and chapter 62 of the General Laws to introduce this new tax. Part C taxable income typically refers to income from investments, such as capital gains from selling stocks, bonds, or other assets. By imposing this additional 3.5% surtax on such income, the bill aims to align the tax rate for long-term capital gains more closely with the rate for short-term capital gains, which are currently taxed at a higher rate. The proposed changes would apply to Part C taxable income, meaning that investment income above a certain threshold would be subject to this additional tax. While the bill's title suggests aligning long-term and short-term capital gains tax rates, the specific text focuses on implementing a new surtax that would increase the overall tax burden on investment income.

Budget and Finance

https://malegislature.gov/Bills/194/S1974