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BOSTON (WBZ NewsRadio) — The AP has called Question 1 in Massachusetts, paving the way for an additional 4% state income tax on annual income greater than $1 million. With 95% of the votes counted, it was the tightest ballot question approval in this cycle, approved with about 52% voters in favor so far.
The "yes" majority vote will amend the state Constitution to tax the wealthy — dollars from which will be put towards education and transportation, though the funds' destinations is up to appropriation by state lawmakers.
Specifically, the tax increase is geared to fund public colleges and universities and maintenance for roads, bridges and public transportation.
Only the portion of a person's income which is greater than $1 million will be taxed with the additional 4%.
The amount of tax was proposed to be reset annually, adjusted with the same method used in federal income-tax brackets, which reflects inflation and the rising cost of living in Massachusetts.
According to the Executive Office of Administration and Finance, the amendment would bring annual state revenues up $1.2 billion in the near term, with an 80 percent marginal tax rate hike coming for residents that make over a million dollars annually.
In support of voting 'yes' to Question One, otherwise known as the so-called "Millionaires Tax," the organization Fair Share Massachusetts argued that current tax rules allowed multimillionaires to pay fewer dollars to the government compared to the rest of the Commonwealth. Moreover, the organization said the funds are needed to fix roads and make higher education more affordable within the state.
Meanwhile, those against the proposal, like the Coalition to Stop The Tax Hike Amendment, say Question 1 almost "doubles the state income tax rate of tens of thousands of small business owners, large employers, and retirees." The organization also argues that the amendment would view one-time earning, like the sale of property and pension, as income— forcing a large number of residents into a "very high tax bracket."
The amendment would apply to tax years starting on or after January 2023.
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