Is the proposed 4% surtax on income over $1 million a reliable way to invest in education and transportation, or a sure-fire method to convince more people to avoid calling Massachusetts home?
That question, and other divides over the constitutional amendment before voters in ballot Question 1, drove the conversation Wednesday as leading advocates for and against the so-called millionaires tax made their cases to members of the Needham-based Charles River Regional Chamber. Moderated by chamber President Greg Reibman, the virtual panel featured Andrew Farnitano, communications director for Fair Share for Massachusetts, and Eileen McAnnenny, president of the Massachusetts Taxpayers Foundation.
The discussion comes as both proponents and opponents increase spending on TV ads in the run up to Nov. 8, and a couple of weeks after the Greater Boston Chamber of Commerce blasted the proposed bump in state income tax from 5% to 9% on earnings over $1 million as an “unnecessary financial hit.”
Farnitano emphasized that the tax would likely only impact the top 0.7% of Bay State households.
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Responding to the frequent critique that one-time millionaires — residents who sell a home or a business and report a net gain of more than $1 million — would also face a substantial hike, he noted that the overwhelming majority of tax revenue would come from wealthier residents. Ninety percent would come from those earning more than $2 million annually, while 70% would come from those earning at least $5 million, he said, based on state Department of Revenue estimates.
