State Secretary William Galvin is pressing for changes to the so-called "millionaire’s tax," calling on lawmakers to establish an exemption for some home sellers as well as a trust fund to ensure some of the revenue goes toward education.
Galvin announced the new proposals Thursday after he signed the final certification of the constitutional amendment in ballot Question 1, approved by voters on Nov. 8 by a 52% to 48% margin after years of contentious battles between advocates and many in the business community.
The so-called "fair share amendment" created 4% surtax on all income exceeding $1 million, a move that advocates said creates a fairer tax system, with the revenue earmarked for education and transportation. Only the portion of the income that's more than $1 million would be taxed at the higher rate of 9%; the rest is taxed at the state's current rate of 5%. The tax goes into effect Jan. 1, 2023.
But the revenue remains subject to appropriation by lawmakers, and Galvin pressed lawmakers Thursday to make good on their promise to raise money for public education by establishing a trust fund to hold the money from the new tax.
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