(WWLP) – The new voted-on four percent surtax on the portion of income that exceeds $1 million has started in Massachusetts, but what does this mean for high-earning households?

According to a Tufts University Report, Evaluating the Massachusetts Millionaires Tax, the threshold for this surtax will increase with inflation. Meaning households that make over $1 million will be subjected to the tax. The four percent surtax that is being added to the state’s five percent flat tax is to grant additional money to both public education and transportation investments.

Although, John Rogers, an AIC economic professor questions why the surplus tax revenue that was split up last year to about 3.6 million taxpayers wasn’t kept for the funding of public education and transportation services. As implied by Mass.gov, $2.941 billion was returned to taxpayers in 2022.

The upper class will pay their fair share, according to Rogers, because the more you earn, the more taxes you pay. Their income accounts for a large portion of the state’s total income.

Rogers says, “Are we a state that wants to encourage entrepreneurship and wants to encourage people to be successful? Or are we going to say there’s something wrong with these people, they’re making all this money, let’s tax part of it away?”

Meanwhile, the report mentions how high-earning households are always changing. “A very small number of taxpayers take home more than $1 million on a consistent basis,” the report said. There is a tendency for families to earn a million dollars once rather than year after year. Only 21,000 state taxpayers earned more than $1 million as of 2019.

For taxpayers who may make a million once, the surtax could possibly be paid in a one-year-high earning and never again. This goes for people that are dentists who sell their practices, business owners bought out by their partners, or people selling a valuable investment they’ve held for decades.