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warriorofinternets t1_ivvx7gd wrote

Tax only applies to Income over $1 million per year. After the first million, for each dollar you earn 4 cents of it will be taxed to be used for infrastructure and public schools. So if you make 1,100,000, you’ll end up paying 4,000 in additional taxes which if you are earning that much is literally pocket change.

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[deleted] OP t1_ivvzac4 wrote

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PakkyT t1_ivwlmt7 wrote

>The state law sets a cap of $2.91B in tax revenue.

No it doesn't. That is the amount over the revenue cap which is set yearly by a calculation so it is a moving target. This law was enacted in the 1980s I think and this is only the second time we have ever trigger it.

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bigredthesnorer t1_ivwdfly wrote

Nobody here got your point. Its a good question. If the cap is 2.91B and we're getting refunds, why is there a need to raise taxes without then reducing the tax burden for those under the $1M limit? Won't this additional tax still go above the 2.91B limit?

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[deleted] OP t1_ivwev9w wrote

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MOGicantbewitty t1_ivwq02q wrote

It’s not that the state doesn’t need more funds, it’s that the tax laws for this state limited the amount to collect. Since the state collected more than that amount, it’s being sent back. But they DO need more money to provide services. Question 1 allows for that. And even if it didn’t, it would make the rich in MA pay a more equal percentage of their income as they traditionally have paid much less per dollar income than middle class households. It would also ensure that any refunds would go to people who are in the middle or lower income ranges, rather than the taxes being avoided through tax loopholes for the rich.

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bobby_j_canada t1_ivzx4a1 wrote

The revenue cap law and Prop 2.5 are the two worst pieces of legislation that happened to the state in the last 50 years. They both need to be seriously amended or repealed.

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[deleted] OP t1_iw24nv6 wrote

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CertifiedBlackGuy t1_iw3brkx wrote

You are incorrect.

The budget was set based on the expected taxable income. When covid hit, that number (last years budget) was lowered as a response to expected lost income. That lost income never materialized, and so the state went over the budget revenue because the budget was smaller than expected.

The refund you are getting is only in response to last year's budget, which was less than the amount of tax taken in. Next year's budget will be raised because there is no expected drop in productivity.

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Intrepid_Priority154 t1_ivvyy60 wrote

4 additional cents. So 9 cents altogether. Reminder, Tyreek hill opted to play in FL because tax rate is lower than NY (ma is not far behind now).

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