Editor's note - Beacon HIll lawmakers will vote on Wednesday whether to place on the 2018 statewide ballot a proposed constitutional amendement that would impose a four percentage-point surtax (an 80 percent increase) on incomes of more than $1 million. AIM opposes the Constitutional Amendment Tax Trap and will look at the myths and facts surrounding the issue each day through Wednesday.
Myth: High income earners in Massachusetts are not paying their “fair share” to support the cost of state government programs and investments.
Fact: The existing Massachusetts income tax is highly progressive, with the highest income earners paying the highest share of taxes and the highest effective tax rates.
According to data from the Massachusetts Department of Revenue, the top 20 percent of earners already pay 73 percent of all the income taxes paid to the state. (The top 1 percent of earners alone account for 28 percent of all income taxes paid.) Furthermore, the top 20 percent of earners had an average effective tax rate of 4.7 percent, nearly double the average effective rates paid by the lowest 40 percent of earners.
Myth: The proposal will help to narrow wealth and income gaps and enhance our status as a true “commonwealth.”
Fact: The proposal is intentionally divisive and misleading. Special interest groups are using the popular vote and their ability to spend unlimited campaign funds to advance their own narrow self-interests by targeting a minority of citizens to foot the bill.
The proposal will not increase any citizen’s income, lower anyone’s tax rate, provide any new tax credit or deduction or provide any guaranteed benefit to anyone. There is no guarantee the revenue raised will benefit lower income citizens-or any citizen at any income level in any way.