Finance

Should Millionaires Pay More in Taxes? Massachusetts Voters Will Decide.

June 16, 2017

A proposed "millionaire tax" constitutional amendment is heading to the 2018 ballot after Massachusetts lawmakers voted 134-55 Wednesday to place the measure before voters.

Under the plan, individuals with annual incomes above $1 million would be subject to a 4 percent surtax. The surtax would only apply to portions of income over $1 million. The current income tax rate is 5.1 percent.

Supporters, who have dubbed the measure the Fair Share Amendment, say it would raise an extra $1.9 billion each year that could only be spent on "quality public education, affordable public colleges and universities, and the repair and maintenance of roads, bridges, and public transportation."

"This fair share amendment is asking those with the highest income among us to pay a bit more, to pay their fair share," said Democratic Rep. Jay Kaufman during the joint legislative session.

Critics argue it would hurt the state's business climate, drive away jobs, and put pressure on the state's wealthiest individuals to move away.

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