The fair share adjustment won’t work, according to the Free Market Research Center
According to a new book published by the Pioneer Institute, any plan to change the state’s constitution to allow additional taxes on any dollar earned more than $1 million would cause workers to flee the state and not have a positive effect on supporters calling for the change.
“This is not the time to threaten Massachusetts’ prospects for immediate economic recovery from a once-in-a-century pandemic. The Commonwealth’s long-term economic competitiveness depends on a perilous point,” the Free Market Research Center emphasizes in its new book, “Back to Texas?”
In November, voters will be asked if they think income earned more than $1 million should levy additional taxes at a rate of 4%. The law, called the Equitable Participation Amendment, would change the state constitution if passed, and according to authors Greg Sullivan and Andrew Mikola William Day, results would already be seen in other states such as California and Connecticut.
The authors wrote: “Our neighbor to the south provides strong evidence of the likely outcome of adopting the amendment: Connecticut is still recovering from more than a decade of ‘wealthy sucking’ policies.” Between 2008 and 2020, it ranked 48th among states in both private sector wages. and job growth.”
The authors wrote that during those years, due to higher taxes, people fled the state and went where their retirement would last longer.
“The decision by some of the state’s richest families to relocate has contributed to lower tax revenues, which only deepened Connecticut’s recent budget crisis,” the authors said.
Moreover, the group says, the money raised by the tax will not be spent on education and transportation, advocates say.
“On the face of it, the proposed amendment only requires that the specific revenue collected by the tax be allocated to education and transportation. It says nothing about the total amount spent on these two priorities,” the authors wrote.
Stephen Crawford, a spokesperson for Fair Share in Massachusetts, the campaign that called for the amendment, says Pioneer’s new book should be considered.
“The Pioneer Institute is an incredibly well-funded tool for the incredibly wealthy and is funded by anti-government radicals from outside the state and some of the wealthiest residents of Massachusetts. So-called Pioneer research is often incorrect or deliberately misleading,” Crawford said.
Moreover, according to Crawford, voters don’t need to wonder where the money will go.
“Money raised through the Fair Participation Amendment is constitutionally guaranteed to go to education and transportation. This guarantee was acknowledged by Justice Scott L. Kafker of the Massachusetts Supreme Court during an oral argument on the amendment on May 4.”
“It is up to voters to learn about the potential risks posed by the polling initiative and the misinformation spread by its supporters,” the book’s authors wrote.
Someone who earns $1 million annually or less will not pay any more under tax, and someone who earns $1.1 million will pay an additional $4,000 in taxes that year, according to his proponents.
“The facts are that only the highest 1% income would pay anything extra under the fair sharing adjustment. If you don’t earn more than $1 million in one year, you won’t be affected,” Crawford said.