Business Groups Sue to Stop Massachusetts ‘Millionaire Tax’

BOSTON (AP) — Several business-backed organizations in Massachusetts have filed a constitutional challenge against a proposed surtax on the state’s highest earners.

The lawsuit filed with the Supreme Judicial Court on Tuesday asks the justices to bar the so-called “millionaire tax” from going before voters on the November 2018 state ballot.

The plaintiffs include the Massachusetts High Technology Council, Associated Industries of Massachusetts and the state chapter of the National Federation of Independent Businesses.

The proposed constitutional amendment calls for a 4 percent surtax on any portion of an individual’s annual income that exceeds $1 million. Revenues from the tax would be dedicated to education and transportation.

The suit argues the proposal violates the state’s initiative petition process.

Backers of the millionaire tax said Tuesday they were confident it would survive the challenge.

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