From a loaf of bread to a Disney trip: How Mass. tax refund spending highlights inequities

Jim Hester of Plymouth will use his Massachusetts tax refund for a trip to Vermont and Maine, while Larry Consolini of Lenox is headed to Disney. Maureen Maynard of West Springfield said shell save her pending refund for a vacation in March 2024, though she didnt specify a destination.

But others in the Bay State will be held to more modest trips with their refunds some as modest as to the milk aisle. With her refund amount, Joyce Scott of Shirley suspects shell be able to buy only bread and a gallon of milk at the most.

As for Ed Bland, the refund should cover a half tank of gas.

A MassLive survey, which logged more than 800 responses between Thursday and Tuesday, captured the inequalities that critics say is embedded into the regressive tax formula of Chapter 62F, a 1980s tax cap law thats requiring the Baker administration to dole out nearly $3 billion in excess state revenues.

A group of progressive lawmakers last month unsuccessfully tried to limit the maximum refund to $6,500, as they warned of a rigged tax cap law that would spur unconscionable disparities for low-income Bay Staters.

As state law stands, taxpayers should expect a refund equal to 14% of their 2021 personal income tax liability, meaning those who paid the most in taxes should expect the biggest refunds. Meanwhile, low-income residents who do not pay income taxes or whose income liability was reduced to $0 following intercepts such as unpaid child support and other debts will not receive a refund.Read more: In CNN interview, Gov. Baker urges Republicans to move beyond President Trump

Michelle Mohn of Marblehead said the extra money will offset costs of our winter vacation. Shes very satisfied with the amount of her refund, which came as a check in the mail.

Any additional money back is great! Mohn wrote.

Still, not all MassLive survey respondents were as enthusiastic about their Chapter 62F refunds.

Some Bay Staters who received small refunds, based on their low personal income tax liability, signaled they quickly depleted their money but need additional financial relief as they grapple with inflation.

Its already gone, to bills and putting gas in my car! Adam Joyce of Westminster said. This state doesnt care about any person living in it.

Gov. Charlie Baker repeatedly pressed the Massachusetts Legislature earlier this year to adopt his tax cut package that would have delivered permanent relief to families, seniors, renters and low-income residents, among other vulnerable Bay Staters. A state official on Tuesday told MassLive that Bakers plan remains extremely affordable with current revenues.

But the Legislature tabled its own tax proposals, hewed largely in the mold of Bakers, within their compromise economic development bill as they wrestled with affordability concerns caused by Chapter 62F. That included nixing one-time $250 stimulus checks to middle-income taxpayers.

John Robinson of Tewksbury said he wont be spending his Chapter 62F refund on anything special.

With high inflation it wont go far anyway, Robinson wrote.Read more: In post-election CNN interview, Gov. Baker denounces political extremism

The overwhelming majority of Massachusetts residents intend to use their tax refunds on groceries and outstanding bills, particularly as home heating costs skyrocket this winter, according to MassLive survey responses.

A sizable number of Bay Staters will also spend their refunds on Christmas presents, the survey found.

Tony Parrelli of Agawam said he received his refund as a check in the mail and is satisfied with the amount. As Parrelli emphatically wrote, hell deploy the refund to combat inflation ravaged budget!!

Pamela Creek of Westhampton will use her refund for bills, since shes living paycheck to paycheck thanks to the policies of the Biden administration.

Tara Butler of Webster said she works in a high school and earns so little.

Shes still waiting on her refund, though the Baker administration has said the distribution process will span the start of November through mid-December, with some delays expected due to the U.S. Postal Service.

I plan to use it on bills to try and keep up with the increase in National Grid rates. At least I can get a one time reprieve, Butler wrote. I am worried about when it will come, however, knowing that this is not something we planned on in the first place, try not to count on it at any point.Read more: As Mass. sends out tax refunds, many anxious they wont get one

Winter rates kicked in at the start of the month from National Grid, which previously announced a 64% hike in monthly bills due to steep natural gas prices that are linked to the war in Ukraine.

Suzette Patenaude of Dudley said her pending refund, compared to her electric bill, is only a drop in the bucket.

Beyond bills, other MassLive readers will funnel their Chapter 62F refunds directly into savings.

Gail Jannerelli of North Attleboro put her refund in the bank on Thursday.

Economy not looking promising, wrote Jannerelli, whos satisfied with her refund amount. Pay enough in taxes, about time. Something is better than nothing.

Ed DeSousa of Westport put his refund into savings, though he wrote its a small value.

Donna White of Mansfield will save her pending refund, too, writing: I will take whatever I can get.

Edward Comini of Springfield might end up enlarging his refund amount.

Probably try my luck at MGM. Lol, Comini wrote.