Unfortunately, the so-called millionaires tax was approved by Massachusetts voters last week. This new law goes into effect on January 1, 2023 and will impose a 4% surcharge on all income over $1 million, including for pass-through small businesses.
NFIB was in strong opposition to this tax hike for several reasons:
- It will be an 80% tax hike on pass-through small businesses, increasing the tax rate from 5% to 9% on income over $1 million.
- The state of Massachusetts has a revenue surplus and must return $3 billion to taxpayers under the 62F law in 2022.
- There is no guarantee the revenue will be used as additional education and transportation funding.
- This is no time for a tax increase after businesses faced state mandated shutdowns and restrictions due to COVID-19.
- It makes Massachusetts less competitive by eliminating our flat tax status.
Proponents of the tax falsely claimed it would not impact small business owners…and we want to make their untruth a reality. NFIB will host an upcoming virtual meeting on steps business owners can take to avoid this unfair tax. We urge you to register for this free event to begin thinking about what you must do to prepare your business before this tax goes into effect. Register here.