Baker seeks different approach on tax credit
May. 20, 2015
BOSTON (AP) — Gov. Charlie Baker says he's glad to see lawmakers take action on the state's earned income tax credit, but is disappointed at the approach taken by the state Senate.
Baker said Wednesday he prefers a doubling of the earned income tax credit from 15 percent to 30 percent of the federal credit, paid for by eliminating the state's tax credit for filmmaking.
The earned income tax credit aims to help low-income working families.
A budget amendment approved by the Senate on Tuesday calls for a more modest increase to 22.5 percent of the federal credit. The Senate proposes to pay for it by freezing the state income tax rate at its current 5.15 percent, rather than allowing it to drop in increments to 5 percent over the next several years.