A new “millionaire’s tax” in Massachusetts was expected to generate $1 billion in revenue last year to help pay for public education, infrastructure, and early childcare programs, but projections were a bit off, according to a fresh state analysis.
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, will add $1.5 billion to state coffers this fiscal year, which ends in June—surpassing expectations.
Universal free school meals, much-needed improvements to an aging public transportation system, and tuition-free education for community college students are just some of the programs Massachusetts’ wealthiest residents have helped pay for after voters approved the law in 2022 amid growing calls across the United States to tax the richest households and corporations.
Yeah. This is a good first step. But it needs to go further. A lot of the wealth is not in direct income. We should be including in this capital gains, and perhaps imposing a similar tax on people with assets totally $10M+ or so. A lot of valuation comes at people holding huge assets and stocks, increasing in value and they take loans out on those assets to actually buy anything.