The tax has brought in $800 million more than the state expected.
The state of Massachusetts passed a 4% tax hike on residents making over a million a year in 2022, which took effect in 2023. The tax has raised more revenue than lawmakers originally expected and provides free school lunches for the state’s children.
Before the tax hike, Massachusetts residents paid a 5% annual income tax. After the Fair Share Amendment went into effect, those making over $1 million a year now pay an additional 4% on the portion of their income above $1 million.
The extra income generated by the tax means the state can now afford to provide free school lunches, free community college for those 25 and over and expanded financial assistance for state schools. The tax also funds transportation projects, including road and bridge repairs and new bicycle lanes.
The free school lunches should significantly impact food insecurity in the state. A 2022 study from the Greater Boston Food Bank found that 33% of Massachusetts households were food insecure in 2022. Massachusetts is now the 8th state in the country to offer free school lunches for all students.
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https://www.upworthy.com/massachusetts-raised-taxes-on-millionaires-to-give-its-students-free-meals