BOSTON (WHDH) - State officials say a relief plan will help residents and local businesses who are facing upcoming taxes.
People receiving unemployment benefits could be taxed and businesses are facing hikes of up to 60 percent in their unemployment premiums.
Officials say the proposal would help low-income people and small- to medium-sized businesses. It would eliminate taxes on unemployment benefits for individuals making under $25,000 or a family of four making under $50,000., and eliminate state tax on forgiven PPP loans.
The plan would also freeze unemployment insurance premiums. The state would issue bonds to borrow money to pay for those premiums and business owners could gradually pay the state back, State Sen. Michael Rodrigues said.
“It softens the blow … believe it or not it is less expensive to borrow money on the open bond market than it is from the federal government,” said Rodrigues, who is chairman of the Senate committee on ways and means.
Gov. Charlie Baker, who filed the bill, said it could help the state recover from the pandemic.
“If we can get a significant portion of the population vaccinated and the feds amp up the supply in a big way, the possibility and the opportunity is there for us to get back to what I’ve been calling the ‘next normal’ is very real,” Baker said.
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