Kane Opposes Graduated State Income Tax On 2018 Ballot

WESTBOROUGH, MA—State Representative Hannah Kane, R-Shrewsbury, voted again to oppose placing a graduated state income tax plan on the 2018 state ballot.

Citing concerns about its Constitutionality, uncertainty over how the money raised will actually be spent, and the long-term impact the tax change will have on the state’s economy, Representative Kane voted against the “Millionaire Tax” proposal, which was approved on a 134-55 vote during a joint session of the House and Senate, according to a press release.

“I believe that this proposal is misleading and starts us down a dangerous path. Given that the Massachusetts Constitution prohibits the specific appropriation of funds, this graduated income tax, while in theory is being earmarked for transportation and education, will in reality likely not be given exclusively to these causes” said Kane in a statement. “Additionally, Massachusetts taxpayers have made it clear on five separate occasions that they are opposed to implementing a graduated income tax. In order to support our small business owners and to ensure a thriving state economy with continued low unemployment rates, I have opposed implementing a hefty additional tax burden and remain committed to examining our current spending practices and ensure more effective and efficient use of the funds currently available.”

The tax measure, which requires the support of at least 50 legislators in two successive legislative sessions, received initial approval during last year’s Constitutional Convention, where it passed on a vote of 135-57. With last week’s vote, the question will now advance to the November 2018 state ballot.

Massachusetts currently assesses all residents’ personal income at a uniform “flat tax” rate of 5.1 percent, and capital gains at a 12 percent rate. The ballot proposal would amend the state Constitution by creating a two-tier tax system imposing an additional 4 percent surtax on all income in excess of $1 million beginning January 1, 2019, with the revenues set aside for education and transportation. The Department of Revenue estimates the surtax will generate approximately $1.9 billion in its first year.