Having the very rich pay a higher percentage in income taxes than the poor, working, and middle class isnt exactly a radical concept. Its what happens every year with federal taxes. And many states have graduated rates that rise as income increases.
Massachusetts flat income tax which is baked into the state Constitution actually translates into lower-income residents paying more as a proportion of their income than the rich. The states wealth leaves us with one of the widest gaps between the rich and poor in the nation, the latter now coming out of the coronavirus pandemic in far worse shape than going in. Extra revenue could pay for improved public transportation, reduced state college tuition and fees, and extra support for struggling school systems, to name a few.
The first millionaires tax effort, called the Fair Share Amendment, was struck from the ballot in 2018 because it stipulated unconstitutionally, as it turned out where the anticipated taxes would be directed. But the process to get it on the ballot in 2022 is in motion.
Working families here in the Commonwealth are tapped out, with the high cost of housing, health care, transportation, child care, and other day-to-day expenses, said state Senator Jason Lewis at a virtual event about the Fair Share Amendment held in early May by supporters of the tax. Lewis is a cosponsor of the proposal in the Legislature. Advocates believe that if state lawmakers initiate the fair share constitutional amendment this time, it might circumvent the legal issue that struck down the earlier effort. Related: Closing racial wealth gap could grow the Massachusetts economy by $25b over five years, according to report
Critics are already launching their attacks. Were told the extra taxes might scare away the rich. They could go to Florida, for example, which has no state income tax. But other states with similar millionaires taxes are doing just fine. An exodus of millionaires is an oversimplification; in reality, the decision to move involves other factors, such as family and community ties. Its why some millionaires in New Jersey, where the tax was approved recently, are staying put. And California, for one, is sporting a massive budget surplus.
And were told we dont need the revenue, given the COVID-19 federal stimulus dollars raining down on us. That is, of course, short-term thinking. The extra $1 billion-plus that the millionaires tax would generate would continue long after the stimulus money has been spent. There is, of course, the long shadow of the Taxachusetts moniker and the idea that raising taxes is an immoral idea that would render the state uncompetitive for businesses. But the facts show that Massachusetts taxes on businesses fall in the middle range.
Those who have been blessed with financial success at a level that most of us can only dream of ought to pay more for the common good so that many more people would have more opportunities. Its why a MassINC December poll found overwhelming support 72 percent for the Fair Share Amendment among voters. In a post-pandemic era when disparities between the fortunate and the less fortunate are widening, a surtax on the wealthy makes perfect sense.