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[email protected] The Rise And Fall Of The Millionaire Tax In Massachusetts By David Nagle and Joseph Donovan (July 11, 2018, 2:00 PM EDT) In a decision released June 20, 2018, the Massachusetts Supreme Judicial Court ended a three-year effort to amend the Massachusetts Constitution and impose an additional tax on individuals with income exceeding $1 million.[1] The court’s opinion addresses the procedure for amending the constitution via initiative petition, as opposed to the merits of a graduated income tax.[2] In analyzing the “related subjects” requirement for such initiatives, and concluding that this initiative failed to contain subjects “which are related or which are mutually dependent,”[3] the court’s opinion strikes a balance between direct and representative democracy, while providing a roadmap for future initiatives and highlighting their importance in lawmaking. David Nagle Background The Massachusetts Constitution has authorized the legislature to levy a personal income tax since 1915 but requires that rates be uniform “upon incomes derived from the same class of property.”[4] “Whatever may be the merits of the system commonly described as the graduated income tax, it is prohibited by article 44” of the amendments to the Massachusetts Constitution.[5] Massachusetts currently taxes ordinary income and long-term capital gains at 5.1 percent, and short-term gains and gains from