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In midterm elections, some voters choose to raise taxes on the rich
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In the pivotal midterm elections on Tuesday, residents in Massachusetts and California had to decide whether to enact major tax policy changes, including hiking rates paid by the richest Americans.
Despite about just 0.6% of high-income households being non-payers compared to 40% of middle income earners, as estimated by the Tax Policy Center.
Only voters in Massachusetts approved a measure to raise taxes on millionaires, while Californians rejected a similar proposition that took aim at the wealthiest Americans living in the state.
Here's a closer look at the tax-related outcomes from Tuesday's election:
In Massachusetts, voters passed a measure that will create a 4% tax on annual income above $1 million. That would be on top of the state's 5% flat income tax, also starting in 2023.
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Under the so-called Fair Share Amendment, millionaires will essentially pay a combined top marginal tax rate of 9%, thus eliminating the state's more than 100-year history of having a flat-rate individual income tax.
While proponents of the law framed it as an effort to ensure the wealthy pay their fair share, critics warned the levy could have negative economic consequences, including hitting small business owners.
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