What California and Massachusetts Ballot “Millionaire Tax” Plans Mean for Taxpayers

How States Plan to Spend Millionaire Tax Proceeds

While the proposed taxes sound similar, there are differences in how each state plans to use the revenue.

In Massachusetts, if voters pass the measure, the tax is expected to generate about $1.3 billion in revenue in 2023, according to Tufts University. analysis. The state seeks to use the proceeds to fund public education, roads, bridges, and public transportation.

tax in california projected would generate between $3.5 billion and $5 billion a year if passed, and the state plans to use the proceeds to pay for zero-emissions vehicle programs and wildfire response and prevention.

Whether voters support an income tax hike or not, income plans often affect election day results, experts say.

“We’ve seen voters reject an income tax increase for the high earners, even if it’s for a relatively small number of people,” said Jared Walchak, vice president of government projects at the Tax Foundation. “And we’ve seen them adopt income tax changes that will affect many.”

We have seen voters reject an income tax increase for high earners, even if it was for a relatively small number of people.

Jared Walchak

Vice President for Government Projects at the Tax Fund

In general, there is one clear trend with state tax ballots: voters are concerned about plans to receive money, he said.

Because the funds are intended to subsidize zero-emission vehicles, Proposition 30 is opposed by Gov. Gavin Newsom, who believes the measure would negatively impact the state’s economy without the benefits “mostly going to Californians,” Walczak said.

Massachusetts promotes progressive taxes.

Federal Plans to Raise Taxes on the Richest Americans Failed

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