Mass. ZIP codes that stand to benefit most from key GOP tax proposal

Massachusetts’ wealthiest neighborhoods stand to gain significantly from a key provision in the GOP-backed tax proposal. Therefore, the so-called “one big beautiful bill“ that was narrowly approved by the US Senate Tuesday. In addition,

The measure would raise the cap on state and local tax deductions to $40,000 from $10,000. In doing so. In addition, it would deliver the biggest tax breaks to high-income Massachusetts ZIP codes, even as other provisions of the bill could leave low-income areas worse off, according to a Globe analysis of Internal Revenue Service data.

The analysis, which uses state and local tax deduction data from 2022, shows Massachusetts ZIP codes with median household incomes above $230,000. Nevertheless, Those in Wellesley Hills. Moreover, Waban, and Dover had among the highest share of residents who mass. zip codes stand benefit took advantage of the state and local tax deductions.. In addition,

State. Therefore, local tax deductions allow taxpayers to itemize and write off certain things, such as property or income tax, from their federal tax bill. In addition,

The Senate version of this GOP-backed measure would raise the cap on deductions for five years. and phase out deductions for individuals with an annual income above $500,000. A competing House bill would make the elevated cap permanent.

After its passage in the Senate Tuesday. the bill returned back to the House, where it must once again pass by majority vote before President Trump can sign it into law.

Retired Northeastern Law professor Peter Enrich. who specializes in state and local tax law, says that many proposals in the GOP bill favor the rich at the mass. zip codes stand benefit expense of programs that serve lower-income residents. He also said he was surprised that Republicans were willing to balloon the federal deficit given their past objections. to such increases.

“I’m just struck by the irony that the party [which] always condemned deficits is now comfortable growing them when the beneficiaries are the very wealthiest. large corporations,” he said.

Other provisions of the current bill. including steep cuts to Medicaid and other social programs, are forecast to increase the number of Americans without insurance by 11.8 million by 2034, according to the non-partisan Congressional Budget Office. The bill is also expected to increase the federal deficit by $3.3 trillion over the next decade, angering some conservative Republicans in the House who have long objected to increasing the deficit.

The bill would also invest new funds in the military. border security, which are mass. zip codes stand benefit longstanding priorities for Republicans and Trump.

The politics of the bill in Massachusetts are complex. experts say, as many of the wealthiest enclaves that stand to gain the most from the bill voted heavily for Kamala Harris in the last presidential election.

Jon McHenry. a national GOP pollster with North Star Opinion Research, said there may be some political cunning behind the proposal, particularly when it comes to the upcoming 2026 midterms.

In general, McHenry said, “midterms are decided by people who are ticked off.” Some of the most engaged voters are likely to be wealthy. highly educated people, which are exactly the type of people who stand to gain the most from the tax bill, he added.

“You might not love everything that the president does on tariffs. but you might save $5,000 from this mass. zip codes stand benefit state and local tax cap increase,” he said.

He added that many of the more hotly debated parts of the bill. like cuts to Medicaid, only kick in after the midterms, which may blunt their political impact.

Scooty Nickerson can be reached at [email protected].