Massachusetts’ Legislature Gives Preliminary Approval to Millionaire’s Tax
26th May 2016
Last week, the majority of Massachusetts state legislators voted in favor of a constitutional amendment to enact a “millionaire’s tax.” The organization, Raise Up, collected the necessary signatures needed in order to bring the millionaire’s tax measure to the legislature. This proposal would apply a 4.0 percent surtax on income above $1 million, which would be levied on top of the Bay State’s 5.1 percent flat income tax. The good news is, despite legislative action last week, enactment of such a tax hike is far from imminent. The Boston Globe’s Evan Horowitz explains:
“For one thing, backers need something more than a new law; they need a constitutional amendment — because at present the state constitution doesn’t allow for differential tax rates.”
An 80 percent tax surge would hit small businesses especially hard, as the majority of small businesses file under the individual income tax system. The IRS accounts that more than 3,000 small businesses in Massachusetts report incomes over $1 million. The proposed millionaire’s tax would severely burden small business and stymie future economic growth for the Bay State.
Plenty of room in Texas still.