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A 4% income tax on millionaires will make lunch free for Massachusetts K-12 students (www.npr.org)

submitted 1 year ago by [email protected] to c/[email protected]

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[–] [email protected] 6 points 1 year ago (1 children)

an additional 4% income tax on state residents' incomes above $1 million

The standard state income tax rate in Massachusetts is 5%.

Does that mean the highest earners have a 9% income tax in that area? Either that's very low, or this article isn't very clear on actual tax rates.

[–] [email protected] 5 points 1 year ago (1 children)

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.

[–] [email protected] 1 points 1 year ago

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.