Last month my partner organization, The Pocketbook Project, hosted a speaker series and networking event featuring Eileen P. McAnneny from the Massachusetts Taxpayer’s Foundation with a brief discussion and overview of Ballot Question 1 which is going to be presented to Massachusetts taxpayers on Election Day. For those who don’t know, Ballot Question 1, also known as the “Millionaires Tax'' or the “Fair Share Amendment” is to be voted on in the 2022 general election. It will increase taxes from 5%-9%, an 80% tax increase, that will affect those with an “annual taxable income in excess of $1,000,000 (one million dollars) reported on any return related to those taxes” (MTF, 2022). The money from the surtax will go towards education and transportation. If Massachusetts voters vote “yes” this initiative will go into effect on January 1, 2023.

Jenn Nassour, the President and Founder of the Pocketbook Project, sat down with Eileen McAnneny to discuss Ballot Question 1 and “what it does and doesn’t do.” Very simply, what it does is give the legislature more money. The revenue collected from the surtax will be around two billion dollars. The two billion dollars will go to education and transportation, and there is not a lot of flexibility in terms of where the spending goes. However, Massachusetts already spends much more than this on Education and Transportation, so the question is - will a difference be made?

Passing this ballot initiative is very much like getting a tattoo, permanent and hard to undo. If question 1 is passed, this will put the tax rate into the state constitution, making the legislature no longer have the ability to amend it if it becomes necessary. The process to amend something instilled in the constitution takes a minimum of 4 years, so if taxpayers are not happy with the outcome, there is no going back easily.

Jenn and Eileen divulged into the history of the question, which I found incredibly insightful. Massachusetts has tried to pass something very similar, a graduated tax increase, nearly five times in the past. Voters historically have always rejected this, but this ballot initiative opens up the door for the legislature to cleverly try again. However, just to be clear, unlike a graduated tax increase, the legislature won’t have the ability to change the rate once it is in the constitution.

A great misconception with the “Millionaires Tax'' is the misconception that it will only affect the uber-rich. That is just not true. Small business owners will be hurt. Retirees will be hurt. More people can be affected than one may originally think.

I think the overall ideology of our event was that times have changed. The value of a dollar is different. The Covid-19 pandemic has changed everything that once was normal to us. Workers with the ability to work remotely can be anywhere in the world now, they no longer have to be where the business is, or where the money is. What will make Massachusetts a place we want to live and a place we want to stay? Will it be a tax increase, or will it be something more beneficial to all?

In closing, the event held by the Pocketbook Project was necessary and informational. Many of the ballot questions can be misleading or misguided and it is important that Massachusetts voters are completely informed on how they will be voting in the upcoming election. I wholeheartedly would encourage the Pocketbook Project to host many similar events in the future to educate like-minded individuals on the issues that matter.