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Massachusetts’s ‘millionaires tax’ has already generated $1.8 billion this year, blowing past state projections – The Boston Globe

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Massachusetts’s ‘millionaires tax’ has already generated .8 billion this year, blowing past state projections – The Boston Globe


The Department of Revenue won’t certify the official amount raised until later this year. But the estimates immediately buoyed supporters’ claims that the surtax would deliver much-needed revenue for the state despite fears it could drive out some of the state’s wealthiest residents.

“Opponents of the Fair Share Amendment claimed that multi-millionaires would flee Massachusetts rather than pay the new tax, and they are being proven wrong every day,” said Andrew Farnitano, a spokesperson for Raise Up Massachusetts, the union-backed group which pushed the 2022 ballot initiative.

“With this money from the ultra-rich, we can do even more to improve our public schools and colleges, invest in roads, bridges, and public transit, and start building an economy that works for everyone,” Farnitano said.

Voters approved the measure in 2022 to levy an additional 4 percent tax on annual earnings over $1 million. At the time, the Massachusetts Budget and Policy Center, a left-leaning think tank, projected it could generate at least $2 billion a year.

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State officials last year put their estimates slightly lower at up to $1.7 billion, and lawmakers embraced calls from economists to cap what it initially spends from the surtax, given it may be too volatile to rely upon in its first year.

So far, it’s vastly exceeded those expectations, generating nearly $1.4 billion alone last quarter, which coincided with a better-than-expected April for tax collections overall.

State officials said that they raked in $1 billion more in tax revenue overall than they had projected in April. That marked a stark reversal from earlier in the fiscal year, when collections lagged expectations for months, prompting state officials to slash spending, downgrade their revenue forecast, and, last month, freeze some state hiring.

Matt Gorzkowicz, Healey’s budget chief, said at the time that officials believe most of the unexpected revenue was generated by the “millionaires tax” and collections from capital gains, all money that state officials largely can’t use to balance the budget.

Revenue from the surtax is constitutionally mandated to go toward education and transportation initiatives, while excess revenue from capital gains must flow to the state’s emergency savings account. Nevertheless, Gorzkowicz said then that state officials believe they’re on track to close the fiscal year at the end of June in line with projections.

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Massachusetts has struggled with residents leaving the state in recent years.

In 2021 — before the “millionaires tax” took effect — Massachusetts said goodbye to taxpayers with a collective $4.3 billion in adjusted gross income, an increase of 40 percent from the prior year, according to an analysis by the Pioneer Institute. Nearly 25,200 more tax filers moved out of Massachusetts than moved in, the data show.

A recent analysis by Boston Indicators, the research arm of the Boston Foundation found that the people moving out of Massachusetts across 2021 and 2022 were predominantly middle- and high-income earners, and college-educated.

Particularly dire: Working-age adults are leaving in droves. On net, Massachusetts lost an average of 22,631 people ages 25 to 44 across 2021 and 2022 — the largest number of any age group and a marked increase over previous years, according to the report.

Exactly why — and how much the tax environment may have contributed — wasn’t completely clear, as the state has also struggled with a housing crisis that has pushed families and others to seek more affordable locales.

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The same analysis found that the state’s population rebounded last year, with a gain of nearly 11,500 residents from July 1, 2022, to July 1, 2023, as immigration numbers rebounded from pandemic-era lows.

“Whatever short term financial benefit the state will receive from the income surtax will be outweighed by the long-term negative effect this tax is having on the state,” said Paul Craney, a spokesperson for the conservative-leaning Massachusetts Fiscal Alliance.

Phineas Baxandall, the Mass. Budget and Policy Center’s interim president, said Monday that the take from the tax shouldn’t be shocking. A state analysis five years ago predicted that the “millionaires tax” could generate nearly $2 billion, he said, and “income has further concentrated at the top since then.”

“This isn’t surprising,” he said.

State Senator Michael Rodrigues, the state’s budget chief, said on the Senate floor Monday that excess revenue from the tax could ultimately come close to $1 billion for this fiscal year. Under language lawmakers passed last year, 85 percent of any “excess” revenue is transferred to an account reserved for one-time projects or spending, such as road maintenance, school building projects, or major public transportation work.

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“We will not have any problems identifying those,” Rodrigues said. “As we all know, [transportation and education] are two areas of immense need.”

Material from the State House News Service was used in this report.


Matt Stout can be reached at matt.stout@globe.com. Follow him @mattpstout.





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Massachusetts

French-Mediterranean Eatery Charts Opening In Boston

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French-Mediterranean Eatery Charts Opening In Boston


BOSTON, MA — An international restaurant group with locations across the globe is preparing to open its first Massachusetts restaurant this year.

LPM Restaurant & Bar, a French Riviera-inspired restaurant founded in London, is set to open on the second floor of the Four Seasons Hotel One Dalton Street in Back Bay, according to Four Seasons. The hotel lists the restaurant as “Opening Summer 2026,” while the Boston Business Journal reported the restaurant plans to open in September.

The Boston restaurant will mark LPM’s debut in the Northeast and its third U.S. outpost, following locations in Miami and Las Vegas, according to a Four Seasons announcement.

LPM, also known as La Petite Maison, was founded in London in 2007 and is known for French-Mediterranean food, Mediterranean ingredients and dining rooms influenced by Belle Époque design.

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The business operates locations in London, Dubai, Miami, Abu Dhabi, Hong Kong, Riyadh, Limassol, Doha, Mykonos, Kuwait, Boston, Maldives and Bangkok.

Four Seasons said LPM will take over the space that formerly housed One Dalton’s breakfast concept, One + One. The restaurant will join other dining options at the hotel, including Zuma and Trifecta.

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Massachusetts high school under investigation after teachers diagnosed with breast cancer

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Massachusetts high school under investigation after teachers diagnosed with breast cancer


A Massachusetts high school is under investigation after “several” teachers have been diagnosed with breast cancer or precancerous conditions.

The state Department of Public Health is set to visit Uxbridge High School on Thursday to “conduct a series of air quality tests,” to determine whether the multiple cases are potentially connected.

Superintendent David Ljungberg and Principal Michael Rubin alerted families and district staff on Monday of the “sombering news,” after Uxbridge High School’s graduation over the weekend.

“We are writing to inform you about a concern we are investigating at Uxbridge High School,” Ljungberg and Rubin stated in the letter. “Several female teachers have been diagnosed with breast cancer or precancerous conditions over the past few years.”

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“It is, of course, possible that these multiple cases are not connected to one another,” the leaders added, “but out of abundance of caution, we are looking into any environmental factors at the school that may be a factor in their diagnoses.”

The 123,000-square-foot school, with an enrollment of roughly 600, was constructed in 2012 at a cost of $45 million, including a $22-million state reimbursement.

Uxbridge school leaders say they notified the state Department of Health and local health board as soon as they became aware of the cases, seeking “counsel about how best to proceed.”

“Massachusetts DPH officials have indicated that there is no evidence of immediate danger in the building and no reason to limit access to or use of the facility at this time,” they wrote in their letter. “In fact, the public health officials have commended our decision to approach them with these concerns, our readiness to partner with them in support of the evaluation process.”

Health officials are assessing the school’s interior and exterior to “ensure there are no issues with the infrastructure that would present risks (including electrical, plumbing, mechanical, HVAC, and other systems)” and the indoor and outdoor air quality on campus.

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The superintendent and principal said that state officials have ruled out water supply as a “risk factor” after “thorough testing.”

“The team has reached out to the women who have been diagnosed, requesting data to evaluate whether there may be a connection among their cases,” Ljungberg and Rubin wrote. “We are grateful for their cooperation.”

They added that the state has said discovering an environmental “smoking gun” is “rare” in workplace investigations.

“However, even if a direct causal link is not established,” the leaders wrote, “the administration is utilizing this process to rigorously test the building and guarantee that it meets all safety standards moving forward.”

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Gov. Healey backs bill to keep Mass. bars open until 3 a.m. this summer

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Gov. Healey backs bill to keep Mass. bars open until 3 a.m. this summer


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The legislation would allow licensed establishments to sell alcohol one hour later than their normal closing time, up to 3 a.m., between June 1 and Aug. 31, 2026.

The proposal has received support from Boston Mayor Michelle Wu and most recently Gov. Maura Healey, who submitted written testimony Monday to the Joint Committee on Economic Development and Emerging Technologies urging lawmakers to advance the measure. (Jessica Rinaldi/Globe Staff)

Massachusetts lawmakers are considering a measure that would allow cities and towns to temporarily extend bar and restaurant hours during the summer, as the state prepares to host FIFA World Cup matches and celebrations marking the nation’s 250th anniversary.

The legislation (H.5465) filed by state Rep. Carole Fiola, would allow licensed establishments to sell alcohol one hour later than their normal closing time, up to 3 a.m., between June 1 and Aug. 31, 2026. The bill would also allow communities to establish designated public consumption districts where alcohol could be consumed in approved public spaces.

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In a press release announcing the bill, Fiola said the summer’s threefold events lineup — the World Cup, Tall Ships, and July 4th — is an economically significant moment that the state should take advantage of.

“We should capitalize on these events that will generate economic benefits for small businesses and the state as a whole. It’s a local opt-in idea worth exploring that’s being done in other states,” Fiola said.

The proposal has received support from Boston Mayor Michelle Wu and most recently Gov. Maura Healey, who submitted written testimony Monday to the Joint Committee on Economic Development and Emerging Technologies urging lawmakers to advance the measure.

“Massachusetts is planning for a once-in-a-generation summer,” Healey wrote, according to the Boston Globe. “In 2026, we will celebrate the 250th anniversary of our nation’s founding, welcome tall ships from around the world to Boston Harbor for Sail Boston, and host seven FIFA World Cup matches in Foxborough, along with watch parties across the Commonwealth.”

The governor argued that the added flexibility could help local economies benefit from an influx of visitors.

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“That flexibility can help communities capture more visitor spending, support jobs, keep downtowns active, and strengthen Massachusetts’ image as a dynamic destination ready to host the world and a place our residents, including our young professionals, are proud to call home,” Healey wrote.

She also urged lawmakers to move the legislation forward, saying it will “help Massachusetts meet the full economic and cultural opportunities for the summer ahead.”


  • Rhode Island bill proposes 24-hour bar hours during World Cup

In Rhode Island, a similar bill to allow bars and restaurants to remain open until 4 a.m. during the World Cup was signed into law on Friday.

Fiola’s bill remains before the Joint Committee on Economic Development and Emerging Technologies. Any final version would require approval from both the House and Senate before reaching Healey’s desk.

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Annie Jonas is a Community writer at Boston.com. She was previously a local editor at Patch and a freelancer at the Financial Times.

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