NFIB: The commonwealth’s flat income tax is its best economic development tool. Don’t throw it out.
In Massachusetts, Millionaire Tax Talk
On Beacon Hill, talk of a so-called “millionaire’s tax” comes as bad news to Commonwealth small business owners, as it could represent a $1.9 billion tax hike by 2019.
The constitutional amendment proposal would levy a tax on people with annual incomes of $1 million and higher, with revenue allegedly going to public education and transportation.
The amendment would be a huge blow to small business owners in Massachusetts, especially those who function as a pass-through entity, as their business income—and not their individual salaries—would be taxed unfairly.
At present, the state has a flat income tax of 5.1 percent, which is among its best economic development tools, according to NFIB.
According to the non-partisan Tax Foundation, that makes the Commonwealth’s individual income tax rate the 21st lowest in the nation.
