Income Tax Surcharge Heading for the Ballot

July 6, 2022

Income Tax Surcharge Heading for the Ballot

Those seeking to amend the Massachusetts Constitution by tacking on a 4% income tax surcharge for incomes over $1 million are at it again. In 2018, NFIB and other business groups successfully sued to remove the question from the ballot preventing this 80% tax hike. But legislators, joining with labor activists, took a new approach and re-filed the amendment for the 2022 ballot. If passed by the voters, this change from a flat tax to a graduated income tax will be forever enshrined in the Massachusetts Constitution. NFIB strongly opposes a graduated income tax because the vast majority of small businesses in Massachusetts file their taxes as individuals. While proponents of the amendment claim the tax surcharge will only impact high income earners, it is abundantly clear that it will instead serve as a tax hike on small businesses who file their taxes as pass-through entities. While most smaller employers will not see $1 million in annual income, many will surpass $1 million when they decide to sell their business. Therefore, the so-called millionaire’s tax will unfairly become a retirement tax on small business owners who sell their operation and experience their retirement nest egg facing higher taxation. If you are interested in becoming active in the effort to oppose this ballot initiative, you may learn more by visiting the Coalition for a Strong Massachusetts Economy.

Topics:

Uncategorized

State:

Massachusetts

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