Current:Home > InvestMassachusetts passed a millionaire's tax. Now, the revenue is paying for free public school lunches. -AssetTrainer
Massachusetts passed a millionaire's tax. Now, the revenue is paying for free public school lunches.
View
Date:2025-04-15 07:23:04
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! (4)
Related
- Backstage at New York's Jingle Ball with Jimmy Fallon, 'Queer Eye' and Meghan Trainor
- Veterans Day restaurant deals 2024: More than 80 discounts, including free meals
- Army veteran reunites with his K9 companion, who served with him in Afghanistan
- The Best Corduroy Pants Deals from J.Crew Outlet, Old Navy, Levi’s & More, Starting at $26
- House passes bill to add 66 new federal judgeships, but prospects murky after Biden veto threat
- Waymo’s robotaxis now open to anyone who wants a driverless ride in Los Angeles
- Jenn Tran's Ex Devin Strader Throws Shade At Her DWTS Partner Sasha Farber Amid Romance Rumors
- Brands Our Editors Are Thankful For in 2024
- Small twin
- U.S.-Mexico water agreement might bring relief to parched South Texas
Ranking
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- Watch as massive amount of crabs scamper across Australian island: 'It's quite weird'
- The Masked Singer's Ice King Might Be a Jonas Brother
- Karol G addresses backlash to '+57' lyric: 'I still have a lot to learn'
- Meta releases AI model to enhance Metaverse experience
- Georgia House Republicans stick with leadership team for the next two years
- Wicked's Ethan Slater Shares How Ariana Grande and Cynthia Erivo Set the Tone on Set
- What’s the secret to growing strong, healthy nails?
Recommendation
Trump suggestion that Egypt, Jordan absorb Palestinians from Gaza draws rejections, confusion
Kate Spade Outlet’s Early Black Friday Sale – Get a $259 Bag for $59 & More Epic Deals Starting at $25
Threat closes Spokane City Hall and cancels council meeting in Washington state
Trump has promised to ‘save TikTok’. What happens next is less clear
House passes bill to add 66 new federal judgeships, but prospects murky after Biden veto threat
'Unfortunate error': 'Wicked' dolls with porn site on packaging pulled from Target, Amazon
Why California takes weeks to count votes, while states like Florida are faster
My Little Pony finally hits the Toy Hall of Fame, alongside Phase 10 and Transformers