Massachusetts Gov. Healey's tax-heavy budget targets candy, tobacco, and charitable deductions

Massachusetts Governor Maura Healey (D) unveiled her $62 billion fiscal year 2026 budget proposal, which contains numerous tax increases, including on candy and tobacco.

Healey's proposed budget, introduced in January, amounts to a 7.4% increase in the state's overall spending compared to the previous year.

'Governor Healey's priorities are clear: higher taxes and higher spending.'

A new tax on candy is expected to generate $25 million for the state.

Healey claimed that it "isn't about a new tax," arguing that "the purchase of candy does not align with our public health goals, especially for our youth."

"What this is doing is simply saying, when you go to the grocery store, instead of having candy treated like a purchase of bread and eggs and milk, you know, essential groceries, that candy is now going to be treated in the same way as when you go to the bakery, the back of the grocery store, and pick up cupcakes for your kids," the governor stated. "We think that makes sense."

Healey is also seeking to raise tobacco taxes and expand them to include synthetic nicotine products such as Zyn pouches.

Additionally, Healey's proposed budget includes a limit on charitable donation deductions: a cap of $10,000 for joint filers and $5,000 for individual filers. The state estimates that the new limits could generate another $164 million.

On Friday, Healey filed legislation allowing cities and towns to raise local taxes from 6% to 7% on hotel stays in "most communities" and .75% to 1% on meals. Municipalities could also implement a 5% surcharge on motor vehicle excise bills.

Healey claimed that her Municipal Empowerment Act would allow elected officials to "avoid raising property taxes" on Massachusetts residents "who are already struggling with the high cost of housing."

"Importantly, the ideas in this bill come directly from engagement with local officials across the state. They asked for improved fiscal stability, operational efficiency, and flexibility," the governor wrote.

Boston Mayor Michelle Wu (D) approved of Healey's local tax increase options.

"Cities and towns depend on support from the commonwealth to diversify our revenues, build schools, and cut the red tape on buying goods and services from local businesses. Thank you to Gov. Healey and Lt. Gov. Driscoll for your ongoing partnership with the City of Boston and all our municipal governments," Wu stated.

Paul Craney with the Massachusetts Fiscal Alliance told Blaze News that Healey is "relying on new taxes to fund her dramatic increase in state spending."

"Essentially, the governor has a slew of tax hikes that will act like Healey tariffs for the taxpayers," Craney stated. "Among her targets are candy, charities, and local taxes."

"Right before Valentine's Day, Healey wants to impose a 6.25% sales tax on all candies, which will cost Massachusetts taxpayers $25 million dollars every year," he continued. "The governor also wants to add a backdoor tax hike by capping deductions taxpayers can take when they give to Massachusetts charities. This backdoor tax hike will cost the taxpayers $164 million dollars a year. The governor's appetite for higher taxes doesn't stop there. She is also proposing allowing local towns and cities the ability to raise taxes on hotels and take-out food and a 5% increase on the annual vehicle tax."

"Governor Healey's priorities are clear: higher taxes and higher spending," Craney declared.

Anything else?

On Monday, Healey torched a memo from President Donald Trump's U.S. Transportation Secretary Sean Duffy that directed the agency to prioritize programs in communities that have marriage and birth rates that exceed the national average.

Healey stated, "I got to be honest, I've really tried here, but I do not see a connection."

"We're a state that's very serious about ensuring that our residents and our businesses have access to the highest-quality public transit in the entire country," she added.

"It's concerning to governors around the country because people rely on transportation just like they rely on child care and infrastructure," Healey continued. "I'm focused on fixing roads and bridges and building out the kind of transit system that we need, and we need a federal partner who's rowing in that direction."

According to 2022 data from the Centers for Disease Control and Prevention, Massachusetts had a fertility rate of 48.7 births per 1,000 women ages 15 to 44. Only five states had a lower fertility rate. The national average was 54.4 births per 1,000 women.

From 2019 to 2022, Massachusetts had a marriage rate of 5.1 per 1,000 residents, matching New Jersey and Delaware. Only four other states reported lower marriage rates, while the national average was 6.2 marriages per 1,000 population.

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