Massachusetts' new “millionaires tax” was expected to raise $1 billion last year to pay for public education, infrastructure and early child care programs, according to a new state analysis. , the prediction was slightly off.
The state Department of Revenue estimated late last week that the Fair Share Amendment, which requires people with incomes over $1 million to pay a 4% annual surtax, would increase state coffers by $1.5 billion in the fiscal year ending in June. This is higher than expected. .
Universal free school meals, long-awaited improvements to aging public transportation, and free tuition for community college students are among the demands voters across the state will pass in 2022. After approval, these are just a few of the programs that Massachusetts' wealthiest residents helped pay for. The US taxes the wealthiest households and businesses.
The amendment narrowly passed through a statewide ballot initiative in 2022, despite opponents' claims that it would force wealthy residents and businesses to leave the state.
Progressive Massachusetts political director Jonathan Cohn and other officials say state analysis of the law shows that requiring the wealthy to pay more taxes to contribute to the greater good will benefit the state as a whole. He said it was shown.
“The first year of the Fair Share Amendment has been great, and we look forward to more!” Said organization.
According to FairShare, which advocated for the 2022 referendum to pass, $150 million of the new revenue was earmarked for green infrastructure expansion and other construction projects for schools, while the state's wealthiest taxpayers It said it spent only $69 million to fund free schools. Feeds every child in Massachusetts and “saved families hundreds of dollars.”
More than $205 million is being spent to upgrade, repair and maintain the Massachusetts Bay Transportation Authority system, and $150 million is being spent to repair bridges and roads. Just $70.5 million will go toward expanding access to quality child care and preschool, and $50 million will go toward tuition-free community college.
The investment “was only possible because voters passed this constitutional amendment and we created this new tax,” said Andrew Farnitano, a spokesperson for the Raise Up MA Coalition. WBUR.
“Funds are being spent where promised,” he added. “These are fundamental investments in our economy and are needed to ensure our economy works for everyone.”
Farnitano said.mass live Revenues from the Fair Share Amendment are expected to increase by $2 billion by the time the 2025 budget takes effect.
“We've seen the impact over the past few months, and the impact will continue to grow,” he said.
Farnitano said the overall decline in revenue in other states shows that public spending would not be possible without the Fair Share Amendment. WBUR.
a politikoA September 2021 Morning Consult poll found that 74% of Americans agree that the wealthiest Americans should pay higher taxes, making it difficult for the Massachusetts law to pass. A Gallup poll conducted a month ago in August 2022 found that 52% agreed. Respondents believe the U.S. government should “redistribute wealth by taxing the wealthy heavily,” but 47% disagree.
