Massachusetts has taken a bold step in reshaping its public education and transportation systems with the recent implementation of a progressive tax law known as the Fair Share Amendment. Approved by voters in 2022, the amendment introduced a 4% surtax on annual incomes exceeding $1 million, an initiative aimed at channeling additional revenue directly into public services. The Fair Share Amendment has delivered far beyond initial projections. Lawmakers had initially estimated the surtax would bring in around $1 billion per year, yet the first full year saw a windfall of $2.2 billion, doubling expectations. The policy's success has defied critics who predicted dire economic consequences. Opponents argued that a millionaire’s tax would drive affluent residents out of the state, shrink the tax base, and discourage investment in Massachusetts. Contrary to these claims, the state’s economy has shown resilience. The last five quarters have witnessed steady growth, with real GDP rising by 3.3% in the second quarter of 2024. Furthermore, there has been no exodus of high-income earners to states with lower or no income taxes.

The economic benefits of the Fair Share Amendment extend to crucial public investments that are already beginning to reshape Massachusetts’ educational and transportation sectors. A budget of $117 million was allocated toward the newly established MassEducate program, which offers universal, tuition-free access to the state’s community colleges, allowing residents to pursue education at community colleges regardless of age or socioeconomic background, completely waiving tuition and fees. This investment comes at a time when many sectors, especially healthcare and transportation, are facing workforce shortages and need more skilled professionals.

Transportation infrastructure, too, has seen unprecedented investment thanks to Fair Share funds. With $538 million dedicated to the sector, aiming to enhance public transit by lowering fares, expanding fare-free regional bus services, and addressing infrastructure needs like bridge repairs and public transit improvements.

The Fair Share Amendment has also created budget to fund early childhood education and care programs thereby helping to increase childcare access and stability in low-income communities.

In the face of rising inequality, Massachusetts’ innovative tax policy demonstrates that wealth redistribution through a carefully crafted tax mechanism can promote social mobility, bolster public infrastructure, and ensure access to essential services.

On the other side of the ocean, Germany's SPD is going into the next federal election campaign with a tax reform in mind, proposing increased income taxes for the richest, a new wealth tax, a reformed inheritance tax, and adjustments to the national debt rule. These reforms are intended to ease the tax burden on approximately 95% of the population. The SPD's renewed push for a wealth tax builds on their 2021 federal election platform, where they argued that Germany’s wealthiest should contribute more to society. The proposed tax, featuring a 1% levy on substantial assets, would come with high personal allowances to shield most citizens and spare business assets from additional taxation.

These proposals feed into the global debate on implementing a global minimum wealth tax on the ultra-rich, as presented by economist Gabriel Zucman at the G20 summit in Rio de Janeiro.