Massachusetts
Massachusetts’s ‘millionaires tax’ has already generated $1.8 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.
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.
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.
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.
“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.
As libraries across western Massachusetts celebrate National Library Week from April 19 to April 25, they are honoring “the last real third space where everyone is welcome,” in the words of Greenfield Public Library Assistant Director Lisa Prolman.
According to the American Library Association, National Library Week is “an annual celebration highlighting the valuable role libraries and library professionals play in transforming lives and strengthening our communities.” This year, several libraries in the region will be hosting events to highlight the roles they play in their communities.
The Athol Public Library is among the venues engaging in National Library Week festivities, with a whole host of events starting on Tuesday, April 21, with Silly Goose Story Time at 10:30 a.m. The library will hold multiple events each day, including “Free Book Friday” on April 24, which Assistant Director Robin Shtulman said is “really fantastic.”
Shtulman said the week celebrates and emphasizes the “freedom to read, community outreach and celebrating the staff, without whom nothing would happen.”
The Athol Public Library said in an event announcement that “whatever brings you joy, the library has something for everyone,” and that aspect is being emphasized this National Library Week. To name a few of the events on tap, on Tuesday, April 21, from 3:30 to 5:30 p.m., there’s a volunteer opportunity where teens will make greeting cards for senior citizens; “A Minecraft Movie” will be shown at the same date and time; and on Thursday, April 23, the library will host Scavenger Hunt Bingo for all ages. For a full list of events at the Athol Public Library, visit atholpubliclibrary.com.
In Shelburne Falls, the Arms Library will feature a gallery from the Carlos Heiligmann Collection, a series of photos of public libraries across western Massachusetts. Also in collaboration with the Arms Library, Pothole Pictures and the Shelburne Falls Area Women’s Club will partner for a screening of “Free For All: The Public Library” on Saturday, April 25, at 2 p.m. at the Shelburne Falls Theater at Memorial Hall.
The documentary focuses on the evolution of the public library from its origins in the 19th century and the challenges it faces today, with modern-day issues such as book bans, funding cuts and debates over censorship.
It also explores the role that women’s clubs, like the one in Shelburne Falls, played in creating the modern library system. To serve their communities, women’s clubs took the lead in fundraising, collecting books and advocating for library legislation.
“Our women’s club in this town started with a group of 60 women who were gathering for lessons. … Because of the support of women in the U.S., we established over 80% of the public libraries [in the country],” said Christin Couture, program chair for the Shelburne Falls Area Women’s Club. “This film … I hear it’s so fascinating.”
Following the film’s screening, there will be a panel of local librarians who will engage in “lively conversation” about the history and future of public libraries. Tickets are $6, though school-age children will be admitted for free.
In Charlemont, Tyler Memorial Library will host an open house on Saturday, April 25, from noon to 2 p.m. featuring refreshments, a tour of the library and sun catcher crafting.
The Greenfield Public Library, meanwhile, is taking National Library Week in a bit of a different direction, as it is offering a book repair demonstration with Tom Hutcheson on Thursday, April 23, at 3:30 p.m. The day marks William Shakespeare’s birthday.
Although the book repair session required registration and is currently full, those who are interested may be placed on a waiting list at greenfieldpl.libcal.com/event/16460179.
Greenfield Public Library Director Anna Bognolo recognized the hard work that everyone has put into making the library a success, offering a “huge thank you” to the volunteers and staff who make its varied offerings possible.
“Stop by and support your library,” Bognolo said.
“Libraries, especially in this economy, are more important than ever,” Prolman said. Referencing the library’s role as a place where community members can go that is not work or home, she added, “They are the last real third space where everyone is welcome, and we don’t charge you for being here.”
Massachusetts
New Bedford MS-13 Member, Illegal Alien Pleads Guilty to Role in Brutal Murders In Massachusetts, Virginia
Frankli
Police shot and killed a man who officials say rushed officers with a knife during a call in Lexington, Massachusetts, on Saturday.
Middlesex County District Attorney Marian Ryan said the situation started around 1:40 p.m. when Lexington police received a 911 call from a resident of Mason Street reporting that his son had injured himself with a knife.
Officers from the Lexington Police Department and officers from the Northeastern Massachusetts Law Enforcement Council (NEMLEC), who were already in town for Patriots’ Day events, responded to the call.
Police were able to escort two other residents out of the home, initially leaving a 26-year-old man inside. According to Ryan, while officers were setting up outside, the man ran out of the home and approached officers with a large kitchen knife.
She added that police tried twice to use non-lethal force, but it was not effective in stopping him. The man was shot by a Wilmington police officer who is a member of NEMLEC. The man was pronounced dead on scene and the officer who fired that shot was taken to a local hospital as a precaution.
The man’s name has not been released.
Ryan said typically in a call like this where someone was described as harming themselves, officers would first try to separate anyone else to keep them out of danger, which was done, and then standard practice would be to try to wait outside.
“It would be their practice to just wait for the person to come out. In the terrible circumstances of today, he suddenly rushed the officers, still clutching the knife,” Ryan said.
The investigation is still in the preliminary stages and more information is expected in time. Ryan said her office will request a formal inquest from the court to review whether any criminal conduct has occurred, which is the standard process.
This happened around the same time as the annual Patriots’ Day Parade, and just hours after a reenactment of the Battle of Lexington, which drew large crowds to town.
This is a developing story. Check back for updates.
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