Advocates promised the new tax would bring in over $1 billion a year in new revenue. And they quickly saw their predictions surpassed: the state Department of Revenue estimates it will generate over $1.5 billion this fiscal year.
This appears to be a tax on regular income, but I thought that very rich people set up their finances so that their income appeared as carried interest, capital gains, etc. Are those subject to this tax?
The tax is on all taxable income not just regular wage income. Capital gains and carried interest are taxable income. They are subject to the tax if they make over the $1mil annually.
Capital gains are taxed less than regular wage income. Max capital gain rate is 20% while the max wage income tax rate is 37%.
This appears to be a tax on regular income, but I thought that very rich people set up their finances so that their income appeared as carried interest, capital gains, etc. Are those subject to this tax?
According to this article I found, capital gains count as income for Massachusetts state taxes:
https://www.svb.com/private-bank/insights/managing-taxes/latest-tax-update-understanding-and-mitigating-the-massachusetts-millionaires-tax
Edit: just realized the bank I linked to lol
The tax is on all taxable income not just regular wage income. Capital gains and carried interest are taxable income. They are subject to the tax if they make over the $1mil annually.
Capital gains are taxed less than regular wage income. Max capital gain rate is 20% while the max wage income tax rate is 37%.