Guest Post by Mark Nestmann
Last month, lawmakers in Massachusetts approved a constitutional amendment that will lead to the departure of many of the state’s wealthiest and most productive citizens. This move is likely to cause tax revenues to drop and real estate values to collapse.
The proposed change imposes a 4% surtax on residents with taxable income of $1 million or more. Currently, the state income tax rate is a flat 5.1%. So, when the measure comes into effect in 2019, the wealthiest taxpayers in Massachusetts will see their state income tax burden nearly double, which will cause many of them to move elsewhere.
Before the surtax comes into effect, it must be endorsed at a constitutional convention and approved by state voters. But judging by the lopsided votes for approval in both chambers of the legislature, the amendment being passed seems a foregone conclusion. The state Senate voted 33–7 in favor of it; the House vote was 102–50.
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