Senate Budget Writers Reject Late Effort To Tax Wages Of High Earners
Democratic Senator Jeanne Dietsch of Peterborough aimed to ease the burden on property poor communities that struggle to pay for education.
Her plan would have extended the 6.2 % withholding on income up to $132,900 for Social Security to wages earned above that, and directed the money – some $300 million -- towards reducing statewide property taxes.
The proposal was estimated to impose what amounts to a new tax on income on about 42,000 people, that’s about 6 % of state wage earners.
Backers of the plan said it would provide schools with a needed boost, but the Senate committee made short work of the idea.
“So we move inexpedient.”
“Is there a second? Yes.”
“All those say aye.
“The motion carries.”
While Finance Committee members from both parties panned the bill as an income tax, supporters say it was a sincere effort to address school funding pressures.