After months of discussion and debate, the Massachusetts Supreme Judicial Court (SJC) has rejected a proposal to put the so-called Massachusetts Millionaire’s Tax on the ballot this November.
The SJC has ruled that the measure is unconstitutional because it posed two unrelated questions to Massachusetts voters. The proposed ballot question mandated that the funds raised would be used for education and transportation. Had the ballot question been passed by the voters, it would have resulted in an additional 4% tax on all income earned (with some exceptions) over $1 million dollars.
In a television interview with NBC 10 Boston, DGC’s Laura Barooshian explained the reasoning behind the SJC’s ruling.
“Someone who wants spending on education may not necessarily be an advocate for an increase in taxes,” Barooshian said. “Because there was no meaningful connection between an increase in tax, transportation, and education, (the court ruled) that the question was unconstitutional and should not be on the ballot.”
The process to get the Millionaire’s Tax on the ballot began in 2016. Since that time, Barooshian says there has been an increasing level of concern among both individual and business clients.
“We at DGC have been talking to our clients both on the business side and individuals who would’ve been impacted,” Barooshian said. “We discussed what this would have meant to them, what it would have meant to their businesses, spending, hiring decisions, capital improvements, amounts that they would have reinvested into their businesses, and individuals who, quite honestly, may have moved out of Massachusetts because the tax was just going to be too much.”
Barooshian believes those in support of the Millionaire’s Tax might try again to get the measure back on the ballot at some point but they will have to start the process all over again. That process will likely take two years.
DGC’s experts have been following this proposed taxation for over two years. If you have any questions about what this decision means for you or your business, please reach out to a member of your DGC Engagement Team or Laura Barooshian, CPA, MST, AEP, CAP at 781-937-5332 / firstname.lastname@example.org, or Stephen Minson CPA, MST at 781-937-5120 / email@example.com.