Fair Share Amendment

To provide the resources for quality public  educationIn addition to K-12 schools, public education includes early education centers and adult learning programs.  and affordable public  colleges and universitiesOne reason for the dynamism of the Massachusetts economy is that we are the only state where more than half of the workforce holds a Bachelor's Degree or higher. This requires public resources. Without adequate public support, some students give up on their educational dreams, while others end up burdened by heavy debt. , and for the repair and maintenance of  roadsA third of non-interstate highway roads are in poor or fair condition, according to the Massachusetts Department of Transportation's most recent (2020) annual performance report. ,  bridgesNine percent of bridges in Massachusetts are officially classified as structurally deficient, according to the Massachusetts Department of Transportation's most recent (2020) annual performance report.  and  public transportationPublic transportation also includes regional transit systems, paratransit services, as well as ferries, buses, trains and bike paths. High quality public transit can reduce the number of automobiles on the road, reducing climate change emissions from transportation, which is currently the largest and fastest-growing source of climate emissions in Massachusetts. , all  revenues receivedThe Massachusetts Department of Revenue estimated an additional $2 billion, based on a 2015 projection of what additional revenue collections would have been in 2019. Given inflation, economic growth, and the growing concentration of income in the hands of those with the highest incomes since 2015, it is likely that revenue collections will be somewhat higher in 2023 and future years. This would allow for still greater investments in transportation and education.  in accordance with this paragraph shall be expended,  subject to appropriationThe Legislature will determine the specific expenditures on education and transportation as part of the state's annual budget process. ,  only for these purposesThe directive to spend these funds “only for these purposes” - language written directly into the constitution - provides a clear mandate as to how the Legislature must spend this revenue. . In addition to the taxes on income  otherwise authorizedThis refers to the 5% tax applied to income under $1 million a year. Income taxes for people with annual incomes below $1 million will be unchanged by the Fair Share Amendment.  under this Article, there shall be an additional tax of  4 percentThis brings the top combined state and local income tax rate to 9% on this portion of income. Nine other states have top combined rates similar to or higher than 9% - including 14.78% in New York, 13.3% in California, 11.75% in New Jersey, 11% in Hawaii.  on  that portionThe tax applies only starting with the “second million.” A tax filer with an income of $1,000,001 would pay just four additional cents.  of annual taxable  incomeDespite its nickname as a “millionaire” tax, it doesn’t tax wealth. The tax applies only to annual income, and only to the amount above $1 million - after other exemptions and deductions have been subtracted.  in excess of $1,000,000 (one million dollars) reported on any return related to those taxes. To ensure that this additional tax continues to apply only to the commonwealth’s  highest income taxpayersAbout 20,000 tax filers, according to the most recent (2018) IRS statistics. By those statistics, almost 99.5% of tax filers would not pay the tax. , this $1,000,000 (one million dollars) income level shall be adjusted annually to reflect any increases in the cost of living by the same method used for federal income tax brackets. This paragraph shall apply to all tax years beginning on or after  January 1, 2023Additional revenue from the Fair Share Amendment will begin to be collected in estimated quarterly tax payments in March 2023 and June 2023, making a portion of the additional revenue available for state spending during the 2022 Fiscal Year. .