Ferrante withdraws graduated tax bill

JASON GROW/Courtesy photo/State Rep. Ann-Margaret Ferrante, D-Gloucester

BOSTON — State Rep. Ann-Margaret Ferrante of Gloucester and two colleagues have dropped their bid to pass a constitutional amendment that authorizes the Legislature to establish a graduated income tax structure. 

Ferrante, state Sen. Barry Finegold of Andover and state Rep. Alice Peisch of Wellesley, all Democrats, proposed the amendment to a constitutional amendment that adds a 4 percent income surtax on household income above $1 million per year.

The amendment was listed as withdrawn in the hours before the Constitutional Convention resumed Wednesday at 1 p.m.

The graduated income tax amendment would have explicitly permitted the Legislature to create additional income tax rates in order to provide tax relief to low-income residents and raise income taxes on higher income residents.

The main amendment would shift Massachusetts away from its uniform income tax rate, by forcing taxpayers with incomes above $1 million to pay an effective 9 percent income tax rate. The current 5.05 percent income tax rate is set to fall to 5 percent on Jan. 1, 2020.