Will MA Courts Block Millionaire's Tax?

Date: January 31, 2018

Related Content: News Economy Massachusetts

If Raise Up Massachusetts and other supporters prevail, a ‘millionaire’s tax’ ballot initiative will go on the ballot this November. However, the issue is currently held up in court, where NFIB/MA, the Massachusetts High Technology Council, and other business groups have filed a lawsuit to block the measure from going before voters.

Under the proposal, if it appears on the ballot and is approved by Massachusetts voters, the state constitution would be amended to impose a 4 percent surtax on incomes over $1 million. This would significantly impact small business owners, the majority of whom are structured as pass-through entities and pay their business income taxes at the personal rate.

While the measure was approved by lawmakers in two successive legislative sessions, NFIB/MA and fellow litigants argue that it’s unconstitutional because the state constitution prohibits initiative petitions from being used to embed spending earmarks in the constitution. Because revenue generated from the tax surcharge is intended to fund education and transportation, it could be in violation of this rule.

Related Content: News | Economy | Massachusetts

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is America's leading small business association, promoting and protecting the right of our members to own, operate, and grow their business

Find out more about
NFIB Membership

Or call us today

1-800-634-2669

News

State Issues


Choose Your State

Foundations

YEF Foundation Research Center Legal Foundation

Member Benefits