Current:Home > FinanceMassachusetts passed a millionaire's tax. Now, the revenue is paying for free public school lunches. -VitalWealth Strategies
Massachusetts passed a millionaire's tax. Now, the revenue is paying for free public school lunches.
View
Date:2025-04-12 23:58:07
Every kid in Massachusetts will get a free lunch, paid for by proceeds from a new state tax on millionaires.
A new 4% tax on the state's wealthiest residents will account for $1 billion of the state's $56 billion fiscal budget for 2024, according to state documents. A portion of those funds will be used to provide all public-school students with free weekday meals, according to State House News Service.
The new tax, which was approved by voters last year and went into effect in 2023, applies to Massachusetts residents with incomes over $1 million. The new tax adds an extra 4% on earnings above that threshold, making the state's income tax rate one of the highest in the U.S.
Massachusetts' millionaires tax comes as some other Democratic-run states are seeking to bolster their finances through proposed wealth taxes, with the goal of funding social programs such as free school lunches for children. Proponents of wealth taxes argue that the richest Americans have grown their wealth partly due to tax breaks that aren't available to low- and middle-class families, and thus additional taxes on the rich are needed.
With its new budget, which was signed into law by Gov. Maura Healy last week, Massachusetts is now the seventh state to provide free school lunches to kids since COVID-19 funding for free school meals expired.
"[F]ree universal school meals will literally change lives, full stop," said Rep. Jim McGovern, a Democrat from Massachusetts, in a statement earlier this month. "No child in Massachusetts will ever have to wonder how to get though the school day on an empty stomach."
Child care spending and bridges
Of the wealth tax's $1 billion in new revenue, about $524 million will be directed to education, including providing free school lunches as well as expanding child care access and financial aid for college students, according to the governor's office. The rest of the millionaire's tax will fund transportation initiatives, including work on bridges and mass transportation.
The guarantee for free school lunches in Massachusetts comes at an opportune time for families with budgets stretched thin by inflation and as food insecurity is on the rise.
Late last year, a Covid-19 pandemic-relief program that funded free breakfast and lunch for U.S. schoolchildren expired, renewing financial hardship and hunger concerns for many American families. Anti-hunger advocates have urged lawmakers to expand school meal programs, noting that research has shown that hunger can hurt a kid's performance in school.
A May study from the Greater Boston Food Bank found that 33% of Massachusetts households were food insecure in 2022.
- In:
- Massachusetts
- Taxes
veryGood! (241)
Related
- Sonya Massey's father decries possible release of former deputy charged with her death
- Mississippi’s congressional delegation seeks Presidential Medal of Freedom for Medgar Evers
- With James Harden watching, Clippers take control in 3rd quarter to beat Magic 118-102
- Toyota more than doubles investment and job creation at North Carolina battery plant
- Scoot flight from Singapore to Wuhan turns back after 'technical issue' detected
- General Hospital Actor Tyler Christopher Dead at 50
- North Dakota woman accused of fatally poisoning her boyfriend hours after he received an inheritance
- Shani Louk, 22-year-old woman kidnapped by Hamas at music festival, confirmed dead by Israel
- Immigration issues sorted, Guatemala runner Luis Grijalva can now focus solely on sports
- As Trump tried to buy Buffalo Bills, bankers doubted he’d get NFL’s OK, emails show at fraud trial
Ranking
- Southern California rocked by series of earthquakes: Is a bigger one brewing?
- Two Massachusetts residents claim $1 million from different lottery games
- World Series showcases divide in MLB stadium quality: 'We don't want to have our hand out'
- Mexico says four more sunken boats found in Acapulco bay after Hurricane Otis
- 'No Good Deed': Who's the killer in the Netflix comedy? And will there be a Season 2?
- 'The Voice': Niall Horan gets teary-eyed with Team Reba singer Dylan Carter's elimination
- Hamas releases video of Israeli hostages in Gaza demanding Netanyahu agree to prisoner swap
- Closing arguments next in FTX founder Sam Bankman’s fraud trial after his testimony ends
Recommendation
Louisiana high court temporarily removes Judge Eboni Johnson Rose from Baton Rouge bench amid probe
Closing arguments next in FTX founder Sam Bankman’s fraud trial after his testimony ends
What are witch storms? Severe weather pattern could hit Midwest in November
Patrick Dempsey watched his mom fight cancer. Now he's giving families the support his needed.
Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Hi Hi!
Climate change is moving vampire bat habitats and increasing rabies risk, study shows
Does Jan. 6 constitutionally block Trump from 2024 ballot? Lawyers to make case on day 2 of hearing
Cameron tries to energize growing GOP base in challenging Democratic incumbent in Kentucky