Fair Share Facts: New Report Tackles “Millionaires Tax” Claims

Contact: Reginauld Williams, 617-426-1228×102, rwilliams@massbudget.org

For Immediate Release: Thursday September 15, 2022

BOSTON – With just over 50 days left until the general election here in the Commonwealth, the latest report from the Massachusetts Budget and Policy Center (MassBudget) evaluates the best research on the impact of the Fair Share Amendment, also known as the “Millionaires Tax,” and its impact on the Bay State’s future. This November, Massachusetts voters will decide whether to approve an additional 4 percent tax on the portion of a tax filer’s income above $1 million.

“We can’t allow misconceptions about taxing the very wealthy among us to stop the hard won progress we’ve made here in the Commonwealth on funding schools and our mounting transportation needs,” said Marie-Frances Rivera, President of MassBudget. “The research clearly shows that most Massachusetts residents wouldn’t pay a penny more under Fair Share, and it’s important that we remember that this is an equity issue. This new, dedicated revenue is the difference between the Massachusetts we are today, and the true leader we can be. It’s a win-win for us all.”

Some of the key findings from the report include:

Despite the reported surplus, state revenue growth is expected to slow markedly in the coming fiscal year, and Mass. has underfunded many critical areas, including education and transportation, where Fair Share revenue would help make sustaining investments possible;
Research on high-end tax increases in other states clearly show that tax migration and tax avoidance are likely to have only a very limited impact on Fair Share net collections;
In 2021, only 2 percent of Mass. homes sold for gains over $1M, making a solid case that middle-class homeowners will not be “hit hardest” by Fair Share;
Small businesses would benefit from Fair Share revenue, since only 2.6 percent of all Mass. tax filers with any pass-through income will pay Fair Share taxes – and they will pay that tax only on the portion of their income above $1 million.

For more information on the impact of the Fair Share Amendment, visit MassBudget’s resource page here.

Key staff related to this report are available to discuss in further detail.

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