A plan to alter the state structure to permit additional taxes on any greenback earned over $1 million would lead to employees fleeing the state and wouldn’t have the optimistic impression proponents of the change declare, in line with a brand new guide by revealed by the Pioneer Institute.
“This is no time to threaten Massachusetts’ prospects for an immediate economic recovery from a once-in-a-century pandemic. The long-term economic competitiveness of the commonwealth rests on a precarious point,” the free market suppose tank asserts in its new guide, “Back to Taxachusetts?”
In November, voters will probably be requested in the event that they suppose revenue earned over $1 million must be hit with an additional surtax on the fee of 4%. Called the Fair Share Amendment, the legislation would change the state’s structure if handed, and, in line with authors Greg Sullivan, Andrew Mikula and Liam Day, would have outcomes already seen in different states like California and Connecticut.
“Our neighbor to the south provides strong evidence of the likely result of adopting the amendment: Connecticut is still recovering from more than a decade of ‘soak the rich’ policies,” the authors write. “Between 2008 and 2020 it ranked 48th among the states in both private-sector wage and job growth.”
During these years, because of excessive taxes, folks fled the state and went the place their retirements would last more, the authors write.
“The decision by some of the state’s wealthiest families to move elsewhere has contributed to a decline in tax revenue that has only deepened Connecticut’s latest budget crisis,” the authors stated.
Further, the group says, the cash raised by the tax received’t be spent on training and transportation, as advocates say.
“On its face, the proposed amendment only requires that the specific revenue raised by the tax be earmarked to education and transportation. It says nothing about the total amount spent on those two priorities,” the authors write.
Stephen Crawford, a spokesperson for Fair Share for Massachusetts, the marketing campaign advocating for the modification, says that Pioneer’s new guide must be taken with a grain of salt.
“The Pioneer Institute is a well-financed tool of the incredibly wealthy that is funded by out-of-state anti-government radicals and some of the richest residents of Massachusetts. Pioneer’s so-called research is frequently incorrect or deliberately misleading,” Crawford stated.
Further, in line with Crawford, voters don’t have to surprise the place the cash will go.
“The money raised by the Fair Share Amendment is constitutionally guaranteed to go to education and transportation. That guarantee was acknowledged by Justice Scott L. Kafker of the Massachusetts Supreme Judicial Court during oral argument on the amendment on May 4,” he advised the Herald.
“It’s up to voters to recognize the potential dangers posed by the ballot initiative and the misinformation spread by its proponents,” the guide authors write.
An individual making $1 million per 12 months or much less would pay no additional below the tax, and an individual making $1.1 million would pay $4,000 extra in taxes that 12 months, in line with supporters.
“The facts are that only the highest-income 1% will pay anything extra under the Fair Share Amendment. If you don’t earn over $1 million in a single year, you won’t be impacted,” Crawford stated.
Source: www.bostonherald.com”