BOSTON (WWLP) – This week, the state legislature passed a constitutional amendment to raise taxes on households that take in over a million dollars a year, but they’re not the ones who get the final say.
For the second time, lawmakers debated whether to add a 4 percent wealth tax on residents who take in over a million dollars as a household.
What’s been renamed as the ‘Millionaires Tax’ passed in a 147 to 48 vote on Wednesday, and will move forward in a long process to change the state constitution.
Right now, the Massachusetts constitution calls for a “flat tax” so the process to change that requires a second vote in the legislature before it can then be placed on the state ballot.
“This is the first step in a process, in terms of ultimately as the Senate president just started getting that before the voters who would make the ultimate decision,” said Speaker DeLeo.
The idea of the wealth tax is to reinvest revenue collected from wealthy resident into things like education and transportation, but many small business owners who would be impacted by the additional tax feel that they could better invest that money in their local communities.
The bill will go through the legislature one more time before the voters get the final say on the ballot in 2022 at the earliest.