Governor Deval Patrick released his 28.2 billion budget proposal. The proposal is heading over to the Legislature. Once the Senate and the House construct their version of the bill, they will send it back to Gov. Patrick. The 2011 fiscal year begins on the first of July.

Some highlights regarding the new Massachusetts budget proposal include:

Among other things, the new proposal includes an increase in taxes on soda and candy. The candy and soda tax increase would result by eliminating the current sales tax exemption. Taxing soda and candy would generate $52 million for health prevention programs. These programs are setup to educate the public about lifestyle habits that are detrimental to your health. Sticking with the healthy living theme, new tax hikes are proposed for smokeless tobacco and cigars.

The Governor wants to cut back on a current program that supplies tax cuts for the Massachusetts film industry. Those in the industry contend that the program is a success and has generated considerable revenue for the state. They argue that cutting the program is shortsighted. However, the program is expensive to run.

A tax credit for life sciences, which was setup in an attempt to attract companies to Massachusetts, is being reduced. The program has been successful and as a result, will be reduced but not eliminated. It has been successful in introducing new jobs to the state.

A program which extends coverage to almost 170,000 Massachusetts adults, will still be funded under Gov Patrick’s newest budget proposal. The program is called the Commonwealth Care program.

Governor Patrick’s proposal is reliant upon $600 million in federal assistance. However, Congress has yet to pass the bill cementing that the assistance will in fact be available. If for any reason the bill does not pass in Congress, than there will be more cuts in the budget. This year’s budget is a three percent increase of the 2010 fiscal year.

Massachusetts tax attorney Richard M. Stone specializes in advising local, national and multi-national businesses on sophisticated federal and state tax issues including strategy, reporting, dispute resolution and litigation. If you need assistance from Massachusetts tax lawyers, contact the Law Office of Richard Stone.