How much money would the tax bring in?

Answer

The Massachusetts Department of Revenue (DOR) estimated that anywhere from $1.6 to $2.2 billion would be raised from the creation of the surtax. MassBudget and Young and Verner use $1.9 billion as the mid-point used in calculating their estimates. The flux estimates are due to the volatility of capital gains, and millionaires annual reported income. Massachusetts Taxpayers Foundation found that 25% of the expected revenue comes from the tax on capital gains, which have fluctuated over 70% in economic downturns. Young and Verner also warn of the unreliability of this revenue and advocate for “20 to 30 percent of these revenues” to be set aside in the Stabilization Fund.

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