Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S2087

Introduced
2/27/25  

Caption

Relative to the short term capital gains rate to make Massachusetts more competitive

Impact

If enacted, S2087 would significantly alter the capital gains tax framework in Massachusetts, potentially leading to increased investment in the state's economy. By reducing the tax burden on capital gains, the bill intends to attract more capital investment and possibly foster job creation. Reducing capital gains tax rates may encourage both individuals and businesses to invest and reinvest their earnings within the state, rather than moving their capital elsewhere.

Summary

Senate Bill S2087 proposes adjustments to the short-term capital gains tax rates in Massachusetts, aiming to enhance the economic competitiveness of the state. Specifically, the bill suggests lowering the tax rate from 8.5% to three different tiers: 6.84%, 5.18%, and 5%, depending on the timing of the implementation post-passage. This multi-phase reduction is designed to be gradual, with sections set to take effect in the subsequent fiscal years after the bill becomes law.

Contention

Notably, the bill may face contention regarding its fiscal implications. Critics may argue that lowering capital gains taxes could lead to reduced revenue for state programs and services. Advocates for higher tax rates often highlight the need for sufficient funding in public services, education, and infrastructure, which could be adversely affected by lowered revenues. As such, the debate may center around balancing the need for economic growth against the potential budgetary impacts of tax reductions.

Companion Bills

No companion bills found.

Previously Filed As

MA S1974

Aligning the long-term capital gains tax rate with the short-term capital gains tax rate

MA H3129

Aligning the long-term capital gains tax rate with the short-term capital gains tax rate

MA H316

To promote Massachusetts business competitiveness and affordable living

MA H4375

To preserve and advance Massachusetts’ competitiveness in discovery, research, and innovation for a vibrant economy

MA H5259

To preserve and advance Massachusetts' competitiveness in discovery, research, and innovation for a vibrant economy

MA S1989

Relative to the Massachusetts estate tax

MA S2224

Relative to the use of competitive bidding process for emergency shelter programs

MA S1476

To provide clarification to Massachusetts General Laws chapter 80

MA S1475

To provide clarifications to Massachusetts General Laws Chapter 83

MA S2311

Modernizing competitive energy supply

Similar Bills

No similar bills found.