Fiscal groups urge New England to renew Trump tax cuts

A group of fiscal watchdog organizations is urging New England lawmakers to support the renewal of former President Trump's tax cuts from 2017. They say that if these cuts are not extended by the end of the year, families in New England could face severe financial burdens. Representatives from several groups, including Americans for Prosperity and the Massachusetts Fiscal Alliance, argue that letting the tax cuts expire would raise tax bills significantly. For instance, in Massachusetts, families could see their annual taxes increase by about $4,656. Businesses might also face a rise of $2,031, and nearly 29,000 jobs could be at risk. Paul Craney, the executive director of MassFiscal, highlighted concerns about high taxes already affecting workers' paychecks. He warned that not renewing these tax cuts would worsen the financial situation in Massachusetts, potentially making it the highest taxed state in New England. The 2017 Tax Cuts and Jobs Act reduced tax rates across several income brackets and increased standard deductions. This law is set to expire on December 31 unless Congress acts. Craney calls on lawmakers to prioritize their constituents over party politics. Drew Cline from the Josiah Bartlett Center stated that failing to renew the tax cuts could slow economic growth and harm all Americans. The non-partisan Tax Policy Center predicts that renewing the tax cuts could decrease federal revenue by $4.5 trillion but offer limited long-term economic growth. An Oxford University study suggested mixed results from the tax cuts. While some companies boosted investment and workers' earnings, the benefits were mostly skewed towards wealthy shareholders and executives, increasing economic inequality.