Rep.
Hynes’
State House Report December, 2005 Capital Gains Tax - The Legislative leadership has finally reached agreement to enact legislation to prohibit the collection of retroactive capital gains taxes for calendar year 2002. This matter came to a head in the last few days when the Department of Revenue sent out notices to taxpayers who had sold capital assets during the first four months of 2002, a period in which a new tax went into effect. The new law, part of a comprehensive package to balance budget shortfalls due to the recession, began to tax profits from capital gains at the ordinary income rate of 5.3%. Because the new law was not signed until May, 2002, the legislature sought to exempt those whose transactions resulted in profits in the four months prior to that period. Two state Supreme Court judgments, subsequent to that, ruled that taxation periods must start at the beginning of the year. The law had set the start of the new taxation for January, 2002, but granted amnesty to those receiving profits on capital assets until May. The Department of Revenue, with the second Supreme Court decision disallowing the amnesty, began to send out tax notices requiring taxes and interest be paid for all capital gains realized during the period. This retroactive requirement caused several of us to protest, recognizing that retroactive taxation is unfair and unjust, notwithstanding the fact that the Supreme Court decision would require that to avoid retroactive taxation, the new tax would not take effect until January 1, 2003, resulting in returning capital gains taxes paid in 2002. Although the state treasury would be required to return approximately $250 Million in 2002 capital gains taxes, this, I felt, was much better than imposing this tax retroactively on people who played by the then existing rules. Many planned on using these gains for retirement purposes and children’s education, and, in some cases their financial conditions had changed and payment would have required extraordinary hardship. The legislature and governor are now in agreement on the matter. Anyone who has received notice of taxes due for gains in 2002, can disregard that notice. Home Heating Costs Relief: Home heating costs this winter are expected to rise dramatically and place significant financial burdens on many families. The legislature and Governor have enacted a new law, which hopefully, provides some relief. The three major ingredients of this law are: An infusion of $20 Million into the federal Low-Income Home Energy Assistance Program. Nearly 135,000 Massachusetts households took part in this program last year. This Massachusetts revenue pumping of this program will allow more to participate and the maximum energy assistance benefits to increase to $840 from last year’s $684. A home heating income tax deduction of up to $800 for the costs of oil and gas. Single taxpayers who earn less than $50,000 annually and $75,000 for those filing jointly will qualify. A 30%x tax credit will be made available for those who take steps to make their homes more energy efficient. Residential energy efficient items, and their installation, include home insulation, new efficient window installation, advanced programmable thermostats, and energy efficient gas and oil furnaces. Nicole’s Law: Last year firefighters responded to over 2500 carbon monoxide related calls with 94% of those calls coming from private residences. Known as the silent killer carbon monoxide is tasteless, odorless, and colorless. It poisons and kills. For several years I have worked with Marshfield Fire Chief, Kevin Robinson and State Fire Marshall Stephen Cohen, to fashion legislation to reduce these residential poisonings. Unfortunately, seven year old Plymouth resident, Nicole Garofolo, died last January after drifting snow blocked a vent from a gas furnace in her home, causing carbon monoxide to build up in her home and kill her. Area legislators went to work, filed new legislation, and Nicole’s tragedy gave birth to the new law. Now Nicole’s Law requires residential buildings which contain equipment such as parking garages, boilers, furnaces, and hot water heaters to have working carbon monoxide detectors. Residences will be inspected at the sale or transfer of the property to assure compliance. It is hoped that this new law will save lives and that tragedies such as the poisoning of Nicole Garofolo will be prevented. Carbon monoxide detectors are relatively inexpensive, battery operated, and easily installed. Melanie’s Law: Five months to the day after introducing the proposal at a Memorial Day Press Conference, Governor Mitt Romney signed one of the nation’s toughest drunk driving laws. It was named for Melanie Powell, the 13 year old Marshfield 8th grader killed by a repeat drunk driver in late July, 2003. Her parents, Nancy and Tod, and grandfather, Ron Bersani, spent those five months in a whirlwind struggle, mobilizing media, the public, and legislators in one of the most singularly successful citizen efforts of the last quarter century, in reshaping Massachusetts public policy. Many of the legislative matters in Melanie’s Law had been introduced repeatedly for many years. But none had succeeded. Ron, Tod, and Nancy galvanized the public with repeated accounts of Melanie’s tragic death – reopening their own painful wounds of grief and loss. Other victims of repeat drunken drivers, particularly from the South Shore, joined the effort and mobilized their families and friends. Legislators were called and met with. Yet even this tenacious determination was met by a reluctant legislature unwilling to adopt several of Melanie’s toughest proposals. Ron Bersani, Tod and Nancy Powell would not stand for it and neither would the public. Finally the legislature stood with them and did the right thing. Among Melanie’s Law are the following measures: Increased penalties for driving after a driver’s license suspension. Installation of ignition-locking devices on cars operated by repeat drunk drivers for a period of 2 years. A new charge of manslaughter by motor vehicle punishable by five to ten years in prison Increased penalties for refusing to take a blood alcohol breath test 12 hour impoundment of motor vehicle when arrested for drunk driving Certification of prior conviction for drunk driving now able to be introduced in court without requiring corroboratory evidence or live witness testimony. Lives will now be saved because of Melanie, her parents, and grandfather. We all owe Nancy, Tod, and Ron much gratitude. They relived their sadness and pain at Melanie’s death so that others might have a better chance to remain safe while using our roadways. Now, some who drive drunk will pay a higher penalty and price and this punishment will force them to recognize they can’t drink and drive. Others, however, are true alcoholics and no amount of punishment will deter their drinking. Effective treatment, if they willingly embrace it, will change their drinking behavior. Until then, however, our roadways will remain a battleground where innocent lives will be lost and others severely maimed by this irresponsible and unforgivable behavior. Reflection: “Kindness gives birth to kindness.” Sophocles |