4 PERCENT INCOME TAX HIKE ON EARNINGS OVER $1 MILLION ANNUALLY TAKES EFFECT JANUARY 1

By Bob Katzen

Begnning with 2023 earnings, taxpayers who earn more than $1 million annually will pay an additional 4 percent income tax, in addition to the current flat 5 percent one, on their earnings of more than $1 million annually.

Language in this new consitutional amendment, approved as Question 1 by voters in November 2022, requires that “subject to appropriation” the revenue will go to fund quality public education, affordable public colleges and universities and for the repair and maintenance of roads, bridges and public transportation.

“Our coalition of community organizations, faith-based groups, and labor unions is committed to protecting the will of the people as expressed through Question 1: higher taxes on those who can most afford them, and greater investment in transportation and public education across the state,” said Steve Crawford, spokesman for Raise Up Massachusetts, the group that spearheaded the Vote Yes on Question 1 campaign and promoted the question as the Fair Share Amendment. “We will work with state leaders to ensure that the new revenue from the Fair Share Amendment is directed toward critical investments in our classrooms, campuses and transportation systems. And we will fight any efforts to weaken the Fair Share Amendment by creating new tax breaks, avoidance schemes or giveaways for the ultra-rich.”

“For some taxpayers, Question 1 will mean an 80 percent increase to their state income tax,” said Paul Craney, spokesman for the Mass Fiscal Alliance. “The taxpayers that will be impacted by this are small business owners, retirees, home sales and high income earners. The only appropriate response by the speaker, Senate president and Governor Elect Maura Healey is to support broad tax cuts and tax eliminations that everyone will benefit from. Massachusetts is on the verge of returning to the days of Taxachusetts unless these broad tax cuts are adopted and they must be done so very quickly because the negative impacts associated from Question 1 will not wait.”

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