Preventing high-income tax avoidance
The bill, if enacted, would apply to all tax years commencing after December 31, 2022. This means that beginning with the 2023 tax year, married couples in Massachusetts would be legally bound to file their state tax returns jointly, aligning with their federal filings. The primary intention behind this change is to enhance fairness in the taxation system and ensure that high-income couples do not exploit discrepancies between federal and state tax laws to minimize their tax liabilities.
House Bill 2909, presented by Representative James J. O'Day, aims to prevent high-income tax avoidance by requiring certain married couples to file joint income tax returns. The bill amends Section 6 of Chapter 62C of the General Laws of Massachusetts, mandating that any married couple who files a joint federal income tax return must also file a joint state income tax return for the corresponding tax year. This proposal is designed to close loopholes that may allow high-income earners to benefit from tax advantages by filing separately or utilizing other methods to reduce their taxable income.
Notably, this bill may spark debate among lawmakers and constituents regarding the implications of mandatory joint filings. Proponents might argue that the law will foster greater equity in the state's tax system and reduce the potential for tax evasion among high-income earners. Conversely, critics may express concerns that enforcing joint returns could adversely affect couples who may have valid reasons for filing separately, such as significant discrepancies in income or financial obligations. As such, discussions surrounding HB 2909 are likely to address the balance between preventing tax avoidance and maintaining flexibility for taxpayers.