Massachusetts “Millionaire's Tax” Constitutional Amendment Moves to Voters
Expected to be on November 2018 Ballot
On Wednesday, June 14, the Massachusetts House and Senate approved a bill that would amend the state’s constitution to impose an additional 4% income tax on taxable income over $1 million.
The legislature's approval of this bill sends it to voters on the November 6, 2018 ballot.
As currently written, the constitutional amendment levies an additional tax on all types of taxable income – Part A (interest, dividends, and short-term capital gains), Part C (long-term capital gains) and Part B (all other income).
It also applies to Massachusetts source income (wages, rentals, capital gains, etc.) of non-residents. The amendment applies to tax years beginning on or after January 1, 2019, and specifies that the revenues raised would be dedicated to education and transportation infrastructure. It also allows the $1 million income level to be adjusted annually via the same method used for federal income tax brackets.
Link to the Bill – Senate Website
Link to the Proponents Website – Raise Up Massachusetts – Fair Share Amendment
Link to Massachusetts Taxpayers Foundation viewpoint