MA Tax Cut All But Certain

From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: MA Tax Cut All But Certain
Date: Sun, 19 Jul 1998 00:43:13 -0400

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For those MA taxpayers who haven't been following the news, the
tax cut has overwhelmingly cleared the Legislature, and the
governor has promised to sign it, so I'd be willing to call it
a done deal.  The highlights:
(1) Conform to federal treatment of Roth IRAs
(2) Conform to federal treatment on sale of primary residence.
(3) Doubles the personal exemption from $2,200 to $4,400 (singles)
    and from $4,400 to $8,800 (married, jointly).
(4) Reduces the tax on dividends and interest from 12% to 5.95%.
(5) Leaves the long-term gains sliding scale tax (from 5% to 0%,
    depending on holding period) untouched, and leaves the 12%
    tax on short-term gains untouched.

Item (3) goes partially into effect for Tax Year 1998 (exemptions
raised 73%, raised the remainder the following year).  Item (4)
doesn't take effect until Tax Year 1999.  I don't know about (1) and
(2), but I'd bet they will be in effect for Tax Year 1998.

Rich Carreiro
rlcarr@animato.pn.com
P5-100/RedHat Linux 4.1



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