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House Democrats kicked off debate Monday on a nearly $50 billion state budget bill by rejecting Republican-led efforts to weave tax relief into the annual spending plan.

Massachusetts raked in more than $5 billion in surplus tax revenues last fiscal year and is running at least $1.5 billion ahead of the current year’s projections, performance that – coupled with more than $2 billion in federal American Rescue Plan Act socked away for future use – has generated a steady hum of calls for relief.

Gov. Charlie Baker has pressed recently to share the excess revenues with taxpayers in the form of rate relief, but so far has failed to convince lawmakers. Democrats shot down proposals to temporarily suspend the gas tax, lessen the impact of the estate and capital gains taxes, and boost a tax break for senior citizens.

Monday’s decisions keep pieces of Baker’s tax relief package in limbo. While legislative leaders say his proposal could still find success outside the budget process, the House votes show a lack of interest in paying for the recurring tax breaks in the annual budget, and leave questions about possible future plans.

Rep. Nicholas Boldyga, a Southwick Republican, sought to incorporate a trio of tax changes into the House’s fiscal 2023 state budget (H 4700): reducing the short-term capital gains tax rate from 12 percent to 5 percent, doubling the threshold at which the estate tax kicks in from $1 million to $2 million, and increasing from $750 to $1,755 the circuit breaker tax credit for Bay Staters ages 65 and older.

His amendments mirrored sections of Baker’s bill (H 4361), which is larger in scope and calls for roughly $700 million in tax breaks. The lame-duck governor’s push for tax relief remains before the Revenue Committee, which currently faces a May 4 deadline to decide its fate but could seek another postponement.

Different Opinions Arise

Rep. Mark Cusack, a Braintree Democrat who co-chairs the Revenue Committee, described all three of Boldyga’s amendments as “premature.” He said his panel is “working diligently” on the governor’s package but did not specify any plans to advance tax relief for a vote in the House.

“We’ve had positive conversations with the administration and working with our colleagues on the Revenue Committee as well as the chair of Ways and Means,” Cusack said. “This is a premature amendment and it’s a premature vote. I ask my colleagues to join me in rejecting this so the committee can continue to do its work going forward.”

“When is helping our senior citizens premature?” Boldyga fired back while introducing the third and final amendment in the set. “When is helping our most vulnerable citizens of the commonwealth premature? And since when has this august body ever listened or waited for the governor to take action?”

With a 32-124 vote, the House rejected a Rep. Paul Frost amendment that would have paused the collection of the 24-cents-per-gallon gas tax for 60 days. Frost said he aimed for the suspension to take place during the summer months when many Massachusetts families are traveling and the Bay State’s tourism business surges.

“That two months can make a world of difference for families who are struggling to pay higher prices at the grocery store, higher prices for goods and services, who are paying higher prices to drive to work, at a very crucial time this summer when we want our economy to continue to rebound,” Frost said on the House floor.

On Frost’s amendment, four Democrats joined Republicans in voting for a gas tax suspension: Rep. Colleen Garry of Dracut, Rep. David Robertson of Tewksbury, Rep. Alan Silvia of Fall River and Rep. Jeffrey Turco of Winthrop. Independent Rep. Susannah Whipps of Athol voted against the amendment.

The House rejected another gas tax suspension amendment from Republican Rep. Peter Durant of Spencer on a voice vote, and then laid aside one from Boldyga after deeming it too similar to Frost’s.

House Republicans last month rolled out a proposal similar to Durant’s amendment to suspend collection of the gas tax until prices fall below $3.70 per gallon, but they did not press for the measure to be decided with a roll call vote and Democrats – who wield a supermajority in both chambers – rejected it without individual lawmakers’ stances becoming clear at that time.

What’s To Come

Gas prices have begun to tick upward again in Massachusetts after dipping below an earlier peak. AAA Northeast said Wednesday that the average price for a gallon of gasoline was $4.13, up six cents from a week earlier and 12 cents lower than a month prior.

“As long as the price of oil stays elevated, the price at the pump will struggle to fall,” AAA Northeast Director of Public and Government Affairs Mary Maguire said in a statement. “Consumers may be catching a little break from March’s record-high prices, but don’t expect any dramatic drops.”

The Massachusetts Fiscal Alliance, which has backed prior efforts to lift the gas tax, on Monday slammed House Democrats who opposed Frost’s amendment as “shameful.”

While top Democrats have kept the governor’s proposal in play, they have not offered many indications that they see permanent tax relief as a priority and, at least in the House, are now en route to signing off on a budget that spends the same buckets of revenue Baker sought to keep in the hands of taxpayers.

House Speaker Ron Mariano and House Ways and Means Committee Chairman Aaron Michlewitz have instead pitched a targeted increase in spending on areas of need, such as the early education and care industry, as better use of robust state tax collections.

Michlewitz noted while introducing the $49.6 billion spending bill Monday – to which representatives filed more than 1,500 amendments – that the House budget “does not account for the tax cut proposals” the governor stapled to his version.

“That proposal is still under consideration by the Revenue Committee, but we felt the immediate needs of making these necessary investments were a more pressing use of the funds for this budget,” Michlewitz said.