The millionaire's tax giveth ...

Politico

17-06-2025

MONEY TALKS — Massachusetts' 'millionaires tax' has been boosting the state's bottom line, but some of the state's top Democrats aren't rushing to defend it.
Gov. Maura Healey and House and Senate budget writers have leaned on the 4 percent surtax on incomes above $1 million to fuel new spending in the past couple years. So, it came as a surprise when Healey seemed to say she wouldn't step in to stop efforts to repeal the law. The governor tempered those comments the following day, pointing to 'transformational' investments her administration has made in education and transportation as a result of the levy.
She's not the only one still wary about what the tax — backed by voters in 2022 — will mean for Massachusetts down the road. House Budget Chief Aaron Michlewitz told reporters Monday he still believes it's 'too early' to tell.
'We've got a long way to go before we kind of get to that conclusion of if this is working or not, or how this is affecting our long-term sustainability in the economy,' the Boston Democrat said Monday.
So far, the tax has been a boon for Massachusetts. The House and Senate struck a deal Monday on a supplemental budget funded by more than $1.3 billion in surplus surtax revenue that would, among other things, deliver more than $500 million to the MBTA, including infusing its reserves with $300 million. Andrew Farnitano, a spokesperson for Raise Up Massachusetts, a coalition that helped pass the ballot question, called it an 'unqualified success that's serving as a model for other states that want to invest in quality public services with a fairer tax system.'
But Healey hit on a common concern last week — that wealthy residents looking for greener pastures — i.e. lower taxes — could start moving out of Massachusetts.
Keeping the future of the tax open-ended is the safe way to go, Doug Howgate, president of the Massachusetts Taxpayers Foundation, told Playbook.
'We've seen what's happened over the last two years, but we don't have a long track record here,' Howegate said, 'whether it's in terms of revenues or whether it's in terms of larger impact, and I think it's appropriate for folks to say that we're going to continue to monitor those things closely.'
GOOD TUESDAY MORNING, MASSACHUSETTS. The Boston Globe has more on what made it into the supplemental surtax compromise.
TODAY — Gov. Maura Healey speaks at the BIO International Convention at 9 a.m. and kicks things off at the conference's Massachusetts Pavilion at 10:20 a.m. in Boston Healey and Boston Mayor Michelle Wu speak at an event remembering the Battle of Bunker Hill at 3:15 p.m. in Charlestown. Lt. Gov. Kim Driscoll delivers remarks at the Lawrence Partnership's Annual Meeting at 11 a.m. in Lawrence, speaks at the BIO International Convention at 1:15 p.m. and attends an event hosted by Survivors Say at 5 p.m. in Boston. Auditor Diana DiZoglio is the keynote speaker at the Wakefield Area Chamber of Commerce Annual Dinner at 5 p.m. in Wakefield. Rep. Stephen Lynch holds a press conference with Connecticut Rep. Joe Courtney and Maine Rep. Jared Golden to talk about revitalizing the U.S. shipbuilding and repair industry at 11:30 a.m. in Boston. Wu hosts a coffee hour in South Boston at 10 a.m. and is on GBH's 'Boston Public Radio' at 1 p.m.
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DATELINE BEACON HILL
OH, CANADA — Northeastern governors and leaders from six Canadian provinces met in Boston Monday under the looming specter of a trade war between the long-time allies.
The group of governors — Janet Mills of Maine, Kathy Hochul of New York, Phil Scott of Vermont and Dan McKee of Rhode Island — highlighted their states' reliance on trade and tourism from Canada. And Canadian premiers opened up about their frustration with the White House.
'The rhetoric that we've been hearing out of the president is unfortunate,' said Doug Ford, the premier of Ontario. 'Leaders around the world that I've talked to are dumbfounded. … [They've] said 'I can't believe the president is going after your country.' And we're in disbelief, too.'
But as the meeting closed, they acknowledged there's not much they can do to circumvent the tariffs that President Donald Trump is threatening to impose on America's northern neighbor.
'We're limited as individual provinces and states, to a certain extent, around some of this,' Gov. Maura Healey said, when asked by reporter what tangibles might emerge from the meeting 'But I think we're going to commit to work on ways to ensure a better flow of trade, a sustained flow of activity that will mitigate against some of the disruption to the supply chain that we've seen.'
One concrete item that did come out of the meeting Monday: Healey's latest fundraising appeal.
COLUMN — Sleepless in Boston: Governors and Canadian premiers share their pain by Jonathan Martin, POLITICO.
— Embattled schools chief Pedro Martinez to lead Massachusetts education by John Hilliard, The Boston Globe: 'Pedro Martinez, tapped this spring to become state's next education commissioner, has encountered his fair share of controversy as a schools leader who has battled elected leaders in Nevada, Texas, and Illinois. And as he takes charge in Massachusetts July 1, Martinez said he won't back down if he thinks he's acting in the best interests of students.'
— Legislature seeks more funds for safety-net hospitals by Christian M. Wade, The Eagle-Tribune: 'Tucked into a $533 million supplemental budget set to be taken up by the state Senate Wednesday is a proposal calling for another $174 million for 'financially strained' acute care hospitals.'
— In face of Trump, Mass. Legislature has passed few bills amid tension and infighting by Samantha J. Gross and Matt Stout, The Boston Globe: 'After a session marked by public finger-pointing and backlogged lawmaking, Massachusetts Democratic leaders this year promised a Legislature that would be more efficient, vowed more transparency, and committed to fighting President Trump's agenda. But so far, there's been a lot of fighting amongst themselves. In recent weeks, Democratic leaders have jabbed at each other in press releases. They've argued about who is, and is not, attending hearings. And they have yet to even agree on rules governing their own operations, let alone on much actual legislation as state-level Democrats fashion themselves as bulwarks against Trump's administration.'
THE RACE FOR CITY HALL
FIRST IN PLAYBOOK—Former Easthampton City Councilor Daniel Rist and Easthampton School Committee Member Linda Markee are endorsing Lindsi Sekula in her bid for mayor in Easthampton, per her campaign.
'As someone who served for nearly three decades on the City Council, I care deeply about Easthampton's future — and I believe Lindsi Sekula is the right choice to lead us forward,' Rist, Easthampton's longest-serving city councilor, said in a statement. 'Lindsi knows how City Hall works because she's been doing the work. Her years of experience, steady leadership, and deep commitment to our community make her uniquely qualified to be our next Mayor.'
— Josh Kraft again blasts Wu over White Stadium, claiming costs have skyrocketed by Eve Zuckoff, WBUR: 'Boston mayoral candidate Josh Kraft again blasted Mayor Michelle Wu's handling of the White Stadium renovation project on Monday, saying costs have spiraled. But he didn't provide on-the-record evidence to back up his claim. Speaking in front of the Franklin Park stadium's crumbling facade, Kraft said the city was now on the hook for $172 million to cover its portion of the rebuild. That's far higher than the $91 million Wu's office estimated in December, or the $50 million price tag announced when the Boston Planning and Development Agency approved permits for the plan in July 2024. … A spokesperson for the city did not confirm Kraft's figure or provide an updated project cost estimate. But the city did provide a document that appears to show the cost still stands at $90.1 million.'
MIGRANTS IN MASSACHUSETTS
— As ICE ramps up arrests, Plymouth sheriff's office shuttles men from jail to Hanscom airport by Todd Wallack, WBUR: 'On a recent Saturday morning, sheriff's deputies from Plymouth County escorted 76 men from the jail onto a bus and several vans. All were being held for the federal government, on alleged immigration violations. Their destination: Hanscom Field, an airport in Bedford used mainly for corporate jets, charters and other private planes. The Plymouth County Sheriff's Office has been making a lot of these van trips, according to interviews and records obtained by WBUR — delivering hundreds of people to federal agents at Hanscom, where they're flown to states with larger detention centers, often far from Massachusetts.'
DAY IN COURT
— Massachusetts scientists have lost billions in federal funds. Now they have their day in court. by Craig LeMoult, GBH News.
RELATED — Judge accuses Trump administration of discrimination against minorities by Kyle Cheney and Danny Nguyen, POLITICO: 'A federal judge appointed by Ronald Reagan on Monday accused the Trump administration of 'appalling' and 'palpably clear' discrimination against racial minorities and LGBTQ+ Americans. … [U.S. District Judge William] Young's sweeping rebuke during a court hearing was a reference to two executive orders signed by President Donald Trump that led the National Institutes of Health to rescind funding for research related to racial minorities and LGBTQ+ people.'
FROM THE DELEGATION
— Neal sounds off on Trump policies at regional event in Holyoke to discuss housing crisis by Alexander MacDougall, Daily Hampshire Gazette: 'U.S. Rep. Richard Neal on Monday attacked President Donald Trump's proposed budget bill as well as efforts by the Department of Government Efficiency to remake Social Security, while also criticizing the promotion of inflammatory rhetoric on social media as opposed to regular dialogue.'
— Representatives Seth Moulton, Ayanna Pressley hold town halls opposing Trump by Anjali Huynh and Sean Cotter, The Boston Globe: 'Representatives Seth Moulton and Ayanna Pressley, at separate town halls in Massachusetts 25 miles apart, heavily criticized a swath of actions President Trump has ordered, from mass immigration raids to sweeping funding cuts, while acknowledging left-leaning voters urging their Democratic representatives to do more to resist his administration.'
— Auchincloss probes possible conflicts of interest for top RFK advisers by Tal Kopan, The Boston Globe.
FROM THE 413
— Amherst advocates decry budget freeze for community responders by Scott Merzbach, Daily Hampshire Gazette: 'With the Town Council presented a budget from Town Manager Paul Bockelman that freezes funding for two of the eight full-time responders, and eliminating a grant-funded program implementation manager, members of the Community Safety and Social Justice Committee are criticizing the spending plan, especially at a time when fear is gripping already marginalized communities in town due to ongoing Immigration and Customs Enforcement actions.'
— Barrett casts lone no vote on MCLA arts center commendation by Sten Spinella, The Berkshire Eagle: 'Rep. John Barrett III hopes he's wrong. But he's still not convinced. On Thursday, the North Adams Democrat cast the lone dissenting vote as the Massachusetts College of Liberal Arts Board of Trustees commended the MCLA Foundation for securing a multimillion-dollar gift to fund the planned Campagna Kleefeld Center for Creativity in the Arts.'
THE LOCAL ANGLE
— Attleboro city council hears arguments on proposed ban on rodenticides by Rhianwen Watkins, The Sun Chronicle: 'Rat poison has risen to the forefront of local and state politics recently, as studies have shown it poses significant harm to wildlife. Several birds of prey, foxes, bobcats, and even household pets are at risk of secondary poisoning from rodenticides and many, especially predatory birds across the state, have died over the years as a result.'
— North Andover schools to bring back some staff by Angelina Berube, The Eagle-Tribune: 'The school district plans to reinstate about a dozen positions next school year which were part of budget cuts as it makes use of various funds, including the $1 million extra approved by Town Meeting voters for the fiscal year 2026 budget. Superintendent Pamela Lathrop provided the staffing update to the School Committee at its meeting on Thursday.'
— Who wants to be on the New Bedford School Committee? by Colin Hogan, The New Bedford Light.
— Candidates pull nomination papers for Lowell City Council, School Committee seats by Melanie Gilbert, The Lowell Sun.
HEARD 'ROUND THE BUBBLAH
WEDDING BELLS — Alex Demou, director of legislative and trustee relations at the Massachusetts Department of Higher Education, married Tina Ascolillo, vice president at Rasky Partners, in Newport, Rhode Island, on June 5. The couple met working as staffers on Beacon Hill.
HAPPY BIRTHDAY — to CBS News reporter Nicole Sganga, state Rep. Aaron Saunders and Maxwell Nunes.