{"id":41841,"date":"2025-11-04T18:37:55","date_gmt":"2025-11-04T18:37:55","guid":{"rendered":"https:\/\/bostonchamber.com\/?post_type=policy-insights&#038;p=41841"},"modified":"2025-11-04T19:06:37","modified_gmt":"2025-11-04T19:06:37","slug":"chamber-supports-reducing-short-term-capital-gains-tax","status":"publish","type":"policy-insights","link":"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/","title":{"rendered":"Chamber Supports Reducing Short-Term Capital Gains Tax Rate"},"content":{"rendered":"<style> .banner:before {\r\n        background: linear-gradient(0deg,rgba(0,0,0,0.5),rgba(0,0,0,0.5)) !important;\r\n    }<\/style><div id=\"ra_id_1709927494\" class=\"banner dark-hero-theme standard\" style=\"background-image: url()\">\r\n        <div class=\"container  banner-container text-Center\">\r\n            <div class=\"row center-items\">\r\n                                \r\n                <div class=\"col-lg-7\"  >\r\n                                            <!-- <p class=\"label special-label\" tabindex=\"0\"><\/p> -->\r\n                    \r\n                    <h1 class=\"underline-text white  required\" tabindex=\"0\">\r\n                        Chamber Supports Reducing Short-Term Capital Gains Tax Rate                    <\/h1>\r\n                                            <div class=\"xyz\" tabindex=\"0\"><p><\/p><\/div>\r\n                        <div class=\"banner_event\">\r\n                                                <\/div>\r\n                    <div class=\"banner-btn-wrapper\">\r\n                                                                                <\/div>\r\n                        <!-- <a href=\"#\">Link<\/a>\r\n                        <a class=\"arrow-link\" href=\"#\">Link<\/a>\r\n                        <a class=\"external-link\" href=\"#\">External Link<\/a>\r\n                        <a class=\"more-link\" href=\"#\">More<\/a> -->\r\n                    <\/div>\r\n                <\/div>\r\n            <\/div>\r\n        <\/div>\r\n    <\/div>\r\n<script type=\"text\/javascript\">\r\njQuery(document).ready(function($){\r\n    setTimeout(function () {\r\n        console.log('here');\r\n\t\t$('#_youtube-iframe-wrapper').show();\r\n\t}, 2000);\r\n});\r\n<\/script>\n\n<style>\r\n    .cta-btn-wrapper{margin-bottom:2rem;margin-top:-10px;}\r\n<\/style>\r\n<section class=\"wysiwyg_block\">\r\n    <div class=\"container\">\r\n        <div class=\"row\">\r\n            <div class=\"col-lg-8\">\r\n            \r\n            <p>October 3, 2025<\/p>\n<p>&nbsp;<\/p>\n<h5>Representative Adrian Madaro, Chair<\/h5>\n<h5>Joint Committee on Revenue<\/h5>\n<h5>State House, Room 34<\/h5>\n<h5>Boston, MA 02133<\/h5>\n<h5><\/h5>\n<p>&nbsp;<\/p>\n<h5>Senator James Eldridge, Chair<\/h5>\n<h5>Joint Committee on Revenue<\/h5>\n<h5>State House, Room 511-C<\/h5>\n<h5>Boston, MA 02133<\/h5>\n<p>&nbsp;<\/p>\n<p>Dear Chair Madaro and Chair Eldridge,<\/p>\n<p>On behalf of the Greater Boston Chamber of Commerce and its 1,200 members, I write to offer comments in support of S.2087, \u201cAn Act relative to the short-term capital gains rate to make Massachusetts more competitive.\u201d This bill reduces the tax rate on short-term capital gains from 8.5% to 5% over a 3-year period. The rate reduction both aligns Massachusetts with most states that tax gains at the same rate as ordinary income, while also adopting a level of taxation more consistent with competitor states. We urge the Committee to report the bill favorably this session.<\/p>\n<p>The Chamber thanks both the House and Senate for its collaboration with the Healey\/Driscoll Administration to pass the first tax reform package in 20 years in 2023. This effort included reducing an extreme outlier method of taxing short-term gains, reducing a 12% rate to 8.5% This is a significant achievement, and the Chamber is grateful for the Legislature\u2019s attention and progress on closing the gap between the Commonwealth and the rest of the nation.<\/p>\n<p>However, as we reflect on this progress, the Chamber continues to identify tax policies that hurt our competitiveness by remaining out of step with other states, and particularly states that actively seek to lure our talent and businesses outside the Commonwealth.<\/p>\n<p>Massachusetts remains one of only a few states that tax short-term gains at a higher rate than long-term gains. Moreover, 26 states tax gains, both short-term and long-term, at a rate of 5% or lower, making Massachusetts an outlier. Factoring in top marginal rates (the income surtax), only 5 states tax gains at higher rates than Massachusetts\u2019s 9%, and only California taxes short-term capital gains at a higher rate.i Reducing the tax rate consistent with the taxation of ordinary income not only makes the tax code less complicated, it also places Massachusetts in the mainstream, removing an outlier status and its negative impacts to the economy.<\/p>\n<p>Altering the short-term capital gains tax rate will only have a minimal impact on the state\u2019s operating budget, as short-term capital gains revenue is not included in consensus revenue forecasting due to the volatile nature of the tax. Higher realized capital gains that reach the income surtax threshold will still maintain a 9% tax rate, remaining higher than most states, if still more manageable. This improves the Commonwealth\u2019s competitiveness, particularly in the areas of financial services and real estate development.<\/p>\n<p>Thank you again for your consideration. Please reach out with any questions.<\/p>\n<p>Sincerely,<\/p>\n<p>James E. Rooney<\/p>\n<p>President and CEO<\/p>\n<div class=\"wrapper-links\"><a class=\"btn primary-cta btn-arrow\" href=\"https:\/\/bostonchamber.com\/wp-content\/uploads\/2025\/11\/10.3.25-GBCC-Testimony-S.2087-Short-Term-Capital-Gains.pdf\" target=\"_blank\"><span class=\"icon\"><\/span>Download the Letter<\/a><\/div>  \r\n            <\/div>\r\n        <\/div>\r\n    <\/div>\r\n<\/section>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Greater Boston Chamber recently submitted testimony advocating for a lower short-term capital gains tax rate to help Massachusetts compete nationally and attract investment.<\/p>\n","protected":false},"featured_media":34595,"parent":0,"menu_order":0,"template":"","meta":{"content-type":"","inline_featured_image":false},"tags":[37,32],"class_list":["post-41841","policy-insights","type-policy-insights","status-publish","has-post-thumbnail","hentry","tag-business-climate","tag-public-policy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Chamber Supports Reducing Short-Term Capital Gains Tax Rate - Boston Chamber<\/title>\n<meta name=\"description\" content=\"The Greater Boston Chamber recently submitted testimony advocating for a lower short-term capital gains tax rate to help Massachusetts compete nationally and attract investment.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chamber Supports State Research Funding\" \/>\n<meta property=\"og:description\" content=\"The Greater Boston Chamber recently submitted testimony advocating for a lower short-term capital gains tax rate to help Massachusetts compete nationally and attract investment.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/\" \/>\n<meta property=\"og:site_name\" content=\"Boston Chamber\" \/>\n<meta property=\"article:modified_time\" content=\"2025-11-04T19:06:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/bostonchamber.com\/wp-content\/uploads\/2023\/08\/chamber-testimony-tax-image-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"650\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Chamber Supports State Research Funding\" \/>\n<meta name=\"twitter:description\" content=\"The Greater Boston Chamber recently submitted testimony advocating for a lower short-term capital gains tax rate to help Massachusetts compete nationally and attract investment.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/bostonchamber.com\/wp-content\/uploads\/2023\/08\/chamber-testimony-tax-image-1.png\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/\",\"url\":\"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/\",\"name\":\"Chamber Supports Reducing Short-Term Capital Gains Tax Rate - Boston Chamber\",\"isPartOf\":{\"@id\":\"https:\/\/bostonchamber.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/bostonchamber.com\/wp-content\/uploads\/2023\/08\/chamber-testimony-tax-image-1.png\",\"datePublished\":\"2025-11-04T18:37:55+00:00\",\"dateModified\":\"2025-11-04T19:06:37+00:00\",\"description\":\"The Greater Boston Chamber recently submitted testimony advocating for a lower short-term capital gains tax rate to help Massachusetts compete nationally and attract investment.\",\"breadcrumb\":{\"@id\":\"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/#primaryimage\",\"url\":\"https:\/\/bostonchamber.com\/wp-content\/uploads\/2023\/08\/chamber-testimony-tax-image-1.png\",\"contentUrl\":\"https:\/\/bostonchamber.com\/wp-content\/uploads\/2023\/08\/chamber-testimony-tax-image-1.png\",\"width\":650,\"height\":400,\"caption\":\"business climate\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/bostonchamber.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Policy Insights\",\"item\":\"https:\/\/bostonchamber.com\/policy-insights\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Chamber Supports Reducing Short-Term Capital Gains Tax Rate\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/bostonchamber.com\/#website\",\"url\":\"https:\/\/bostonchamber.com\/\",\"name\":\"Boston Chamber\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/bostonchamber.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/bostonchamber.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/bostonchamber.com\/#organization\",\"name\":\"Boston Chamber\",\"url\":\"https:\/\/bostonchamber.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/bostonchamber.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/bostonchamber.com\/wp-content\/uploads\/2021\/12\/Vector.svg\",\"contentUrl\":\"https:\/\/bostonchamber.com\/wp-content\/uploads\/2021\/12\/Vector.svg\",\"width\":146,\"height\":45,\"caption\":\"Boston Chamber\"},\"image\":{\"@id\":\"https:\/\/bostonchamber.com\/#\/schema\/logo\/image\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Chamber Supports Reducing Short-Term Capital Gains Tax Rate - Boston Chamber","description":"The Greater Boston Chamber recently submitted testimony advocating for a lower short-term capital gains tax rate to help Massachusetts compete nationally and attract investment.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/","og_locale":"en_US","og_type":"article","og_title":"Chamber Supports State Research Funding","og_description":"The Greater Boston Chamber recently submitted testimony advocating for a lower short-term capital gains tax rate to help Massachusetts compete nationally and attract investment.","og_url":"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/","og_site_name":"Boston Chamber","article_modified_time":"2025-11-04T19:06:37+00:00","og_image":[{"width":650,"height":400,"url":"https:\/\/bostonchamber.com\/wp-content\/uploads\/2023\/08\/chamber-testimony-tax-image-1.png","type":"image\/png"}],"twitter_card":"summary_large_image","twitter_title":"Chamber Supports State Research Funding","twitter_description":"The Greater Boston Chamber recently submitted testimony advocating for a lower short-term capital gains tax rate to help Massachusetts compete nationally and attract investment.","twitter_image":"https:\/\/bostonchamber.com\/wp-content\/uploads\/2023\/08\/chamber-testimony-tax-image-1.png","twitter_misc":{"Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/","url":"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/","name":"Chamber Supports Reducing Short-Term Capital Gains Tax Rate - Boston Chamber","isPartOf":{"@id":"https:\/\/bostonchamber.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/#primaryimage"},"image":{"@id":"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/#primaryimage"},"thumbnailUrl":"https:\/\/bostonchamber.com\/wp-content\/uploads\/2023\/08\/chamber-testimony-tax-image-1.png","datePublished":"2025-11-04T18:37:55+00:00","dateModified":"2025-11-04T19:06:37+00:00","description":"The Greater Boston Chamber recently submitted testimony advocating for a lower short-term capital gains tax rate to help Massachusetts compete nationally and attract investment.","breadcrumb":{"@id":"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/#primaryimage","url":"https:\/\/bostonchamber.com\/wp-content\/uploads\/2023\/08\/chamber-testimony-tax-image-1.png","contentUrl":"https:\/\/bostonchamber.com\/wp-content\/uploads\/2023\/08\/chamber-testimony-tax-image-1.png","width":650,"height":400,"caption":"business climate"},{"@type":"BreadcrumbList","@id":"https:\/\/bostonchamber.com\/policy-insights\/chamber-supports-reducing-short-term-capital-gains-tax\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/bostonchamber.com\/"},{"@type":"ListItem","position":2,"name":"Policy Insights","item":"https:\/\/bostonchamber.com\/policy-insights\/"},{"@type":"ListItem","position":3,"name":"Chamber Supports Reducing Short-Term Capital Gains Tax Rate"}]},{"@type":"WebSite","@id":"https:\/\/bostonchamber.com\/#website","url":"https:\/\/bostonchamber.com\/","name":"Boston Chamber","description":"","publisher":{"@id":"https:\/\/bostonchamber.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/bostonchamber.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/bostonchamber.com\/#organization","name":"Boston Chamber","url":"https:\/\/bostonchamber.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/bostonchamber.com\/#\/schema\/logo\/image\/","url":"https:\/\/bostonchamber.com\/wp-content\/uploads\/2021\/12\/Vector.svg","contentUrl":"https:\/\/bostonchamber.com\/wp-content\/uploads\/2021\/12\/Vector.svg","width":146,"height":45,"caption":"Boston Chamber"},"image":{"@id":"https:\/\/bostonchamber.com\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/bostonchamber.com\/wp-json\/wp\/v2\/policy-insights\/41841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bostonchamber.com\/wp-json\/wp\/v2\/policy-insights"}],"about":[{"href":"https:\/\/bostonchamber.com\/wp-json\/wp\/v2\/types\/policy-insights"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bostonchamber.com\/wp-json\/wp\/v2\/media\/34595"}],"wp:attachment":[{"href":"https:\/\/bostonchamber.com\/wp-json\/wp\/v2\/media?parent=41841"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bostonchamber.com\/wp-json\/wp\/v2\/tags?post=41841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}