Proposal for Millionaire Tax in Massachusetts Moves Forward; Could be Ratified as Early as 2022
Boston, MA– The proposed “millionaire tax” is making progress in the Massachusetts Statehouse again, and so far, it looks likely that taxes for high-income families who earn over $1 million is likely to increase in the upcoming years.
On Wednesday afternoon, a joint session was held by the Massachusetts Legislature concerning the proposed “millionaire tax,” Boston 25 News reports. The constitutional convention voted on the proposed amendment, with an easy win; 156 members voted in favor of the amendment, while 37 members voted against the amendment. Another meeting is scheduled for some time in June, where a further vote will be taken.
In order to change the tax structure, the state has to pass an amendment to Massachusetts' constitution. At present, Massachusetts has a uniform tax on all household incomes, better known as a flat tax. This flat tax means that every group of taxpayers pays the same percentage of state income taxes, regardless of the amount they take home at the end of the week. In order to change this rule, a change must be made to the constitution, and the Legislature must vote on the matter.
The proposed amendment calls for a 4% surtax on the state’s wealthiest individuals. All Massachusetts residents that make more than $1 million will have to pay a 4% surtax on their income. Annually, this surtax is expected to raise an approximate $2 billion that would be used for bettering education and the transportation systems within the state.
The Senate President, Karen Spilka, told officials on Wednesday that “I think it’s important to many of the legislators and to residents of the Commonwealth to put this on the ballot.” Many other political officials agree with Spilka on the matter, which is why the supporters of the amendment have pushed to use a legislative process to amend the Massachusetts constitution.
The amendment still has to go through a long political process. The earliest voters could ratify a millionaire tax would be in the year 2022.