On Wednesday, Worcester’s Mayor Joseph M. Petty and City Manager Edward M. Augustus, Jr. sent a joint letter to Congressman James P. McGovern and Massachusetts Senators Elizabeth Warren and Edward Markey, expressing their concerns regarding a proposed federal tax reform bill that may have a negative impact on the city’s government programs and its residents.
Specifically, in their letter, the Mayor and City Manager targeted proposed changes to tax-exempt bonds, historic tax credits, new markets tax credits, and low-income housing tax credits. The letter read: “These amendments will have a negative impact on the City of Worcester and our ability to continue to provide the vibrant and strong community expected by our residents.”
The tax exempt bonds, the letter states, are used to construct affordable housing units, schools, hospitals and roads and infrastructure.
According to Petty and Augustus, the changes to these programs would affect critical infrastructure financing, private investment, economic activity, and job creation.
“Eliminating incentives that support local government, reduce costs and allow for infrastructure investment is a complete disservice to municipalities and our residents,” the letter read, while urging Senators Warren and Markey to keep the tax benefits in place.