Massachusetts voters approved the Fair Share Amendment in November. It places a 4% tax on incomes above $1 million, in addition to the state's standard income tax of 5%.
MA (and much of the US) has a multi-level tax system where they all stack up.
Let’s tax someone in Boston, MA making $1.5m/yr
Local = 0%
State = 9% (previously 5%)
Federal = 37%
So on their final dollar of income they’ll be paying 46% income tax now. Note of course because of graduated income tax schemes, that 46% is not applied to the entire $1.5m but instead only to the amount that fits into the highest bracket.
So overall income tax in Boston, MA for the highest bracket is 46%. That’s comparable to many european countries. Although brackets are probably very different.
MA (and much of the US) has a multi-level tax system where they all stack up.
Let’s tax someone in Boston, MA making $1.5m/yr
Local = 0% State = 9% (previously 5%) Federal = 37%
So on their final dollar of income they’ll be paying 46% income tax now. Note of course because of graduated income tax schemes, that 46% is not applied to the entire $1.5m but instead only to the amount that fits into the highest bracket.
That make sense. Thanks a lot.
So overall income tax in Boston, MA for the highest bracket is 46%. That’s comparable to many european countries. Although brackets are probably very different.