Bill > H3129

This bill proposes to introduce an "alignment surtax" of 3.5% on Part C taxable income in Massachusetts, effectively changing the tax code to align long-term and short-term capital gains tax rates. The bill amends several sections of Massachusetts General Laws Chapter 29 and Chapter 62, adding a new definition for the "alignment surtax" and modifying existing tax calculation language to include this additional tax. By imposing this 3.5% surtax on Part C taxable income, which typically includes capital gains, the bill aims to create a more uniform tax treatment of different types of investment income, potentially reducing the tax advantage currently enjoyed by long-term capital gains. The proposed changes would increase the overall tax burden on certain investment earnings, with the goal of creating a more equitable tax structure for different types of investment income.

Budget and Finance

https://malegislature.gov/Bills/194/H3129