BOSTON (WWLP) – Massachusetts millionaires could be paying some extra state taxes in the next couple of years. State lawmakers gave their initial approval of a bill that would establish a 4% surtax on annual income exceeding $1 million.
An extra tax would require a change to the state constitution, which means it would need approval from voters on a ballot question, as well as approval of the Legislature.
If it becomes law, supporters say it would generate more than $2 billion in revenue that would be spent on education and transportation projects in Massachusetts.
State Rep. Jay Kaufman (D-Lexington) calls the idea an issue of fairness. “The way our system is set up with property taxes, sales taxes, and a flat income tax- results in a tax burden- a disproportionate tax burden- on the middle class and the poor among us,” Kaufman said.
Opponents argue, however, that an added-on “millionaire’s tax” would prevent major corporations from moving to Massachusetts.
The proposal is still far away from becoming law, however. A question on the proposal could appear on the statewide ballot in 2018.