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Study Warns Massachusetts Tax Proposal Would Deter Investment, Stifling the “Innovation Economy” Share Article A state constitutional amendment promoted by the Massachusetts Teachers Association and the Service Employees International Union adding a 4 percent surtax to all annual income above $1 million could devastate innovative startups dependent on Boston’s financial services industry for funding, ultimately hampering the region’s recovery from the COVID-19 economic recession, according to a new study published by Pioneer Institute. “The punitive aspect of the graduated income tax proposal for investors is that, unlike at the federal level, capital gains can push them into a higher tax bracket - a significant deterrent to potential investors in small businesses emerging from the COVID crisis.” - Greg Sullivan, Pioneer Institute

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