The Massachusetts Fiscal Alliance issued the following statement following the release of a report from the nonpartisan, nonprofit Tax Foundation outlining the consequences of passing the proposed income surtax hike amendment.
“We’ve said time and time again that the rosy picture being portrayed by the tax hike amendment’s proponents simply didn’t add up. The Tax Foundation’s study is another data point showing that proponent's fuzzy math could lead to a major economic reversal here in the Commonwealth,” said Paul D. Craney, spokesman for the Massachusetts Fiscal Alliance.
The Tax Foundation’s noted several key points of concern with the proposal, including:
- The graduated income tax amendment would be paid by many small businesses.
- The surtax will impact low- and middle-income earners.
- The graduated income tax amendment is likely to exacerbate the net outmigration from the Commonwealth
- The tax would likely contract the Massachusetts economy by $6 billion by the end of 2025.
“One of the most poignant points they hit on the study is the permanence of this tax. It’s not like when the legislature flubbed up in 2013 and passed the disastrous tech tax without really examining its consequences. Back then, when they realized the deep, negative economic impacts of that tax they were quickly able to repeal it. The tax hike amendment, however, will change our constitution. If this does prove to be the bad idea the Tax Foundation thinks that it will be, it’s going to take years to change it back. That’s a huge risk,” noted Craney.
“Proponents of the tax hike amendment have been extremely deceptive about the real nature of the tax, especially when it comes to who is going to be paying it and how these tax dollars are going to be spent. We hope this latest study helps residents learn some of the truths about this disastrous idea before it’s too late,” finished Craney.
A full copy of the study can be found by clicking here: https://taxfoundation.org/massachusetts-graduated-income-tax-amendment