TL;DR: Do you believe in funding our schools, our infrastructure, and all of the services that make our commonwealth strong at the levels we deserve? Of course you do. So please call your state rep in support of Amendment #1357 (Long-Term Capital Gains) to the budget, which would raise the capital gains tax to provide much-needed additional revenue.
Year after year, as legislators craft the latest budget, tough decisions have to be made. A big part of the reason for these tough decisions is that Massachusetts lacks the revenue to fund things, like good schools and reliable transportation, that are most important to our communities. But not having sufficient revenue isn’t inevitable; it’s a choice.
The Fair Share Amendment, which routinely polled at around 80%, was kicked off the 2018 ballot after a lawsuit from well-funded business groups. The Legislature has the opportunity to advance it to the 2022 ballot via a Constitutional Convention next month. But we can’t afford to wait another four years to invest in our Commonwealth.
The legislature can act RIGHT NOW to begin building the fairer tax structure that Massachusetts voters want.
Raising the tax on long-term capital gains from 5.05% to 8.95%, for example, would put us in line with states like Vermont and New Jersey and raise more than $1 billion to invest in our commonwealth.
The highest-income 1 percent of households receive approximately 80 percent of capital gains income in Massachusetts, while the bottom 80 percent of households receive only 3 percent.
Although 97% of capital gains go to the top quintile of earners, the Connolly amendment has an exemption for low income households to ensure they aren’t hurt by the change.
This is a step that you can take right now. But there are other steps to raise progressive revenue to fund our priorities now that deserve your consideration and your vote throughout the session—from placing a surtax on multi-million homes to increasing the corporate minimum tax so that all corporations pay their fair share. And we plan to keep beating that drum throughout the session.
PS: Curious to read more about the graph above? You can here.
