As a part of its structure, Massachusetts has a flat-rate earnings tax. Since 2020, that fee has been 5.0 % and was really larger in some earlier years. Varied curiosity teams have tried over time to vary the structure in order that the state authorities might impose a better earnings tax fee on high-income folks. Different folks efficiently and valiantly succeeded in combating off these makes an attempt.
This month, there was, but once more, a measure on the Massachusetts poll to vary the structure and impose a better tax fee on folks with excessive incomes. Particularly, the measure known as for a 4-percentage level surtax on the portion of individuals’s earnings in extra of $1 million. I had hoped to report that this measure failed.
Alas, I can not. With 99 % of the votes counted, 52.0 % voted Sure, with 48.0 % voting No. That signifies that it’s mathematically unimaginable for the measure to be voted down. If each single remaining vote have been a No, that might imply that 51.5 % are Sure votes and 48.5 % are No votes.
These are the opening paragraphs of my “The Unhealthy Information from Taxachusetts,” IPI, TaxBytes, November 16, 2022.
And the final paragraph:
The requirement that everybody pay the identical tax fee on earnings restrained politicians from elevating the tax fee considerably as a result of they knew it could hit everybody. Certainly, generally that constraint led politicians to really reduce Massachusetts’ earnings tax charges. In 1992, for instance, the tax fee was 5.95 %. It fell in steps to five.0 %. Sadly, the constraint that led to that joyful result’s now gone.
Learn the complete factor, which is sort of brief.