Current:Home > InvestMassachusetts passed a millionaire's tax. Now, the revenue is paying for free public school lunches. -ProsperityStream Academy
Massachusetts passed a millionaire's tax. Now, the revenue is paying for free public school lunches.
View
Date:2025-04-15 13:38:16
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! (778)
Related
- Connie Chiume, South African 'Black Panther' actress, dies at 72
- Slow down! Michigan mom's texts to son may come back to haunt her
- Museum opens honoring memory of Juan Gabriel, icon of Latin music
- Why this is the best version of Naomi Osaka we've ever seen – regardless of the results
- Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
- Health insurance providers to fund street doctors and clinics to serve LA’s homeless population
- Water buffalo corralled days after it escaped in Iowa suburb and was shot by police
- Kaley Cuoco's impassioned note for moms in Season 2 of Peacock's 'Based on a True Story'
- Audit: California risked millions in homelessness funds due to poor anti-fraud protections
- Northeastern University student sues sorority and landlord over fall from window
Ranking
- A New York Appellate Court Rejects a Broad Application of the State’s Green Amendment
- Armie Hammer sells his truck to save money after cannibalism scandal
- Biden plans to travel to Wisconsin next week to highlight energy policies and efforts to lower costs
- Michigan power outages widespread after potent storms lash the state
- Audit: California risked millions in homelessness funds due to poor anti-fraud protections
- The Daily Money: DJT stock hits new low
- Julianne Hough Says Ex Brooks Laich Making Her Feel Like a “Little Girl” Contributed to Their Divorce
- Court revives Sarah Palin’s libel lawsuit against The New York Times
Recommendation
EU countries double down on a halt to Syrian asylum claims but will not yet send people back
NCT member Taeil leaves K-pop group following sexual offense allegations
Workers are breaching Klamath dams, which will let salmon swim freely for first time in a century
Man wins $439,000 lottery prize just after buying North Carolina home
Federal appeals court upholds $14.25 million fine against Exxon for pollution in Texas
Woman shot at White Sox game sues team and stadium authority
RFK Jr. appeals ruling that knocked him off New York’s presidential election ballot
Kelsea Ballerini Shares Her Dog Dibs Has Inoperable Heart Cancer