AIM is disappointed by the passage of Question 1 and the negative impact it will have on small businesses and the economy as a whole. This constitutional amendment will harm retirees, homeowners, and residents across Massachusetts with no guarantee of increased spending on education and transportation.

The proposal will have an immediate effect on businesses organized as pass-through entities. These companies – many of them small, family businesses that invest profits back into their businesses to grow and expand – will be punished for their success with higher taxes. This will prevent businesses from being able to buy machinery and equipment and provide competitive pay increases for employees at a time of heightened economic uncertainty.

Approval of Question 1 represents a setback for the Massachusetts economy.  The Commonwealth has tried for years to shed the “Taxachusetts” label and today is a step in the wrong direction. The high cost of living, coupled with a shortage of skilled workers, already puts Massachusetts at a competitive disadvantage. Today’s vote will only accelerate that, leading many employers to invest elsewhere.

We hope the Legislature sticks to its promise and uses the revenue from this proposal for transportation and education. Additionally, we hope the Legislature, sitting on billions in surplus revenue and stimulus money, will provide real and meaningful support to businesses in the form of state tax relief, as opposed to continued new spending.

AIM will continue its mission of representing and advocating for Massachusetts job creators as we navigate the future negative impacts of Question 1. We know that when businesses thrive so does the state and we all share the collective goal of fostering a Commonwealth that is strong and provides the highest quality of life for its residents and businesses.