The Massachusetts Millionaires Tax Shows The Need For An Aggressive Tax Policy

Every billionaire is a policy failure.

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Photo by Jon Tyson on Unsplash

It’s official! The Wall Street Journal is a rag written by conservative hacks. This isn’t a novel conclusion, but I’ll never miss an opportunity to point out that the leading rightist newspaper was, without a doubt, 100% wrong.

Let’s back up.

In 2022, Massachusetts voters had the option to pass a referendum increasing taxes on the wealthy. The WSJ editorial board wrote this article claiming the state was flirting with death. They warned it would “speed up a wealth exodus” and leave the state with less tax revenue, as those who would see their taxes increased would leave the state.

A year and a half after Massachusetts voters passed the referendum, we can confidently say the Very Serious People who make up the WSJ editorial board were talking out of their asses. In fact, not only did the Massachusetts Millionaires Tax not cause a wealth exodus, but recent reporting shows it’s a resounding success that provides a model for how similar aggressive taxation programs can be expanded and instituted at the federal — or global — level. 

The Tax

After years of organizing, progressive groups got their referendum to amend the Massachusetts constitution to have a 4% tax on income over a million dollars on the 2022 ballot. It passed, and now that it’s been in place for over a year, we can say the Millionaires Tax (MMT) is an undisputed accomplishment. The Boston Globe reported that in its first fiscal year, the tax has generated over $1.8 billion in revenue, vastly exceeding the state’s forecast of $1 billion. (And there are still two months left in the fiscal year.) This money will go towards education and transportation, with some set aside for emergencies.