Report: Millionaires tax would give govt ‘blank check’

Proponents of a proposed millionaires tax on the fasttrack to next year’s ballot say the measure could bolster education and transportation funding by $2 billion, but a new watchdog report warns it could wind up being a “blank check” for fattening up state government.

“The Massachusetts surtax doesn’t actually require that the legislature increase spending on education and transportation,” said Greg Sullivan, of Pioneer Institute, who co-authored “Lessons for Massachusetts from California’s ‘Blank Check’ Tax on High Earners” with Andrew Mikula.

Lawmakers this session are likely to advance a ballot initiative that would propose a constitutional amendment to impose a 4% surtax on people earning over $1 million. Lawmakers say the cash would be earmarked for transportation and education spending, but during a 2019 constitutional convention state legislators rejected two proposed amendments requiring that the new revenues be directed to these purposes.

The report revealed a similar 2012 tax hike in California that required that at least 40% of revenues be spent on education resulted in the majority of funding being directed to the general fund.

“The rejection of these amendments leaves Massachusetts without even the minimum funding requirements California has in place,” Pioneer Institute executive director Jim Stergios said. “It’s the equivalent of a blank check.”