Massachusetts “Millionaire Tax” Constitutional Amendment Moves Forward to Voters
6/28/2017Articles & Podcasts
On Wednesday, June 14th, the Massachusetts House and Senate approved a bill that would amend the state’s constitution to impose an additional 4% income tax on taxable income over $1 million. Their approval of the bill now sends it to the November, 2018 ballot for voters to decide on.
As currently written, the constitutional amendment levies an additional tax on all types of taxable income – Part A (interest, dividends, and short-term capital gains), Part C (long-term capital gains) and Part B (all other income). Proposals to restrict the amendment to Part B income have failed. It also applies to Massachusetts source income (wages, rentals, capital gains, etc.) of non-residents.
The amendment applies to tax years beginning on or after January 1, 2019, and specifies that the revenues raised are for education and transportation infrastructure. It also allows the $1 million income level to be adjusted annually via the same method used for federal income tax brackets. To read the Bill click here.
DGC will continue to monitor this issue as supporters and critics of the amendment weigh in throughout the coming months. If you want to further discuss this please contact your engagement team, alternatively contact Laura Barooshian, CPA, MST, AEP at 781-937-5332 / firstname.lastname@example.org, or Keith Kenez, CPA, MBA, MSA at 781-937-5146 / email@example.com.