Legislators Advance Massachusetts 'Millionaires Tax' Amidst Talk of 'Class Warfare,' 'Income Inequality'

Boston, MA - State leaders cleared the second hurdle Wednesday for a graduated income tax impacting Massachusetts' highest earners, a step forward in what could be a years-long process.

In the time of Bernie Sanders' "political revolution," it's little surprise that public sentiment has soured on the "billionaire class" (or, in this case, millionaire). Two recent polls found unprecedented support for the so-called "millionaires tax" in Massachusetts, which faced its first legislative vote today.

As proposed, the constitutional amendment would subject those earning more than $1 million a year to an additional 4 percent surtax. Revenue from the tax would be broadly earmarked for education and transportation. To pass, it requires amending the state constitution -- a lengthy process that started with a citizen petition submitted to the state.

Meeting in a joint constitutional convention Wednesday at the statehouse, opponents in the legislator rose to condemn the tax, alleging "money will be fleeing the state" and calling the proposed amendment "taxation gymnastics," "a tax Trojan Horse" and "a penalty on success."

By at least one estimate, the tax would raise close to $2 billion in additional annual revenue. Rep. David Nangle, a Lowell Democrat, warned it would not be the end; the state has levied taxes to raise revenue before, he said.

"But this time we're doing something a little different in this Commonwealth -- class warfare," he said. "There is something wrong with the dialogue around this question. The way I see it... it is stealing from the rich to give to the poor, and I say this to all my colleagues, 'We are legislators. We are not Robin Hood.'"

This tells millionaires, "Because of the success you have achieved the reward, again, is increased taxation -- substantially increased taxation," said Senate Minority Leader Bruce Tarr, a Gloucester Republican.

Tarr ripped into the amendment Wednesday, criticizing it as a constitutionally questionable dodge by legislators who know a broad-based tax increase couldn't pass on its own. It is also a financially unstable solution, he said, saying it could force an exodus of wealthy Bay Staters and discourage local investment -- not to mention many upper-echelon earners' demonstrated ability to avoid paying certain taxes. Moreover, it is fundamentally unfair to single out one group, Tarr said.

The convention's Democratic majority nonetheless swatted down a series of proposed amendments to the tax proposed by Republicans Wednesday.

Supporters say the amendment fixes a fundamentally unfair tax system, and supports economically vital institutions.

"Critics will say that this amendment will scare the job creators out of Massachusetts," said Rep. Timothy Toomey. "These are myths... and they are dying myths."

Degraded educational institutions and infrastructure should be a "a far scarier prospect" for job creators than extra taxation to support those services, the Cambridge Democrat said.

Pending a second legislative vote, the "millionaire tax" measure will go before voters, likely as a referendum on the 2018 ballot.

The measure passed Wednesday's constitutional convention with 135 votes in support and 57 opposed. It needed only 50 to advance.