Business versus business in millionaire’s tax fight?

New ad features brewery owner supporting tax hike

THE BATTLE LINES in the debate over passing the so-called millionaire’s tax have generally pitted organized labor, which supports the tax hike, against organized business groups, which oppose it. But now, proponents of the question are trying to muddy that narrative and argue that they have businesses on their side, too.

A constitutional amendment on the November ballot would raise the tax rate on income over $1 million. The Fair Share for Massachusetts Campaign, the pro-amendment committee led by the liberal organizing group Raise Up Massachusetts, released an ad Friday featuring a business owner who supports the tax increase, following up on a release Thursday of a list of 75 businesses that support the constitutional amendment.

The new ad features Karsen Eckweiler, co-owner of Democracy Brewing in Boston. She argues in the ad, which features shots of Eckweiler at the brewery, that raising $2 billion a year for schools and transportation “means more jobs and better opportunities.” “That’s good for all businesses, big and small,” she says. She says making “the richest 1 percent” pay their fair share means “small businesses like ours will see the benefits.”

A press release announcing the more than 75 business supporters of the amendment features quotes from independent small business owners touting the benefits of raising more state revenue. “We depend on good roads for our employees and customers, and Question 1 will mean $2 billion a year for schools, colleges, and transportation infrastructure, without small businesses paying a penny more,” says Netania Shapiro, owner of Caravan Kitchen in Northampton.

The effort is a direct response to an ad campaign launched earlier this month by the “No on Question 1” coalition. That group argues that small business owners who file taxes as pass-through entities will be hurt, because they declare business profits as personal income. The amendment will also hurt people who earn more than $1 million for a single year because they sell their business or home.

The anti-amendment coalition, in a press release, says it has support from “over 75 small businesses, family farms, chambers of commerce, and community groups, as well as organizations representing over 20,000 small businesses across the state.”

The No on 1 ad features a cranberry grower, lobster fisherman, retired teacher, and small business owners who argue that the tax hike “makes no sense.” “Question 1 would nearly double the income tax rate on tens of thousands of small business owners, family farmers, and homeowners,” the ad states.

The opponents are businesses backed by businesses – though not necessarily the small mom-and-pop shops they depict. The biggest donors to the ad, according to its legally required disclaimer, are Suffolk Construction Company, Rand-Whitney Containerboard, real estate developer Sandra Edgerley, New Balance chairman James Davis, and Adage Capital Management’s Phill Gross.

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Shira Schoenberg

Reporter, CommonWealth

About Shira Schoenberg

Shira Schoenberg is a reporter at CommonWealth magazine. Shira previously worked for more than seven years at the Springfield Republican/MassLive.com where she covered state politics and elections, covering topics as diverse as the launch of the legal marijuana industry, problems with the state's foster care system and the elections of U.S. Sen. Elizabeth Warren and Gov. Charlie Baker. Shira won the Massachusetts Bar Association's 2018 award for Excellence in Legal Journalism and has had several stories win awards from the New England Newspaper and Press Association. Shira covered the 2012 New Hampshire presidential primary for the Boston Globe. Before that, she worked for the Concord (N.H.) Monitor, where she wrote about state government, City Hall and Barack Obama's 2008 New Hampshire primary campaign. Shira holds a master's degree from Columbia University's Graduate School of Journalism.

About Shira Schoenberg

Shira Schoenberg is a reporter at CommonWealth magazine. Shira previously worked for more than seven years at the Springfield Republican/MassLive.com where she covered state politics and elections, covering topics as diverse as the launch of the legal marijuana industry, problems with the state's foster care system and the elections of U.S. Sen. Elizabeth Warren and Gov. Charlie Baker. Shira won the Massachusetts Bar Association's 2018 award for Excellence in Legal Journalism and has had several stories win awards from the New England Newspaper and Press Association. Shira covered the 2012 New Hampshire presidential primary for the Boston Globe. Before that, she worked for the Concord (N.H.) Monitor, where she wrote about state government, City Hall and Barack Obama's 2008 New Hampshire primary campaign. Shira holds a master's degree from Columbia University's Graduate School of Journalism.

The ad by supporters, however, features businesses backed by labor. The top donors to that ad are unions: the Massachusetts Teachers Association, National Education Association, 1199SEIU, and the American Federation of Teachers-Massachusetts, plus the liberal-leaning, Washington, DC-based advocacy group Sixteen Thirty Fund.

To what extent are businesses actually supporting the constitutional amendment? Campaign finance filings show the coalition has tons of union support and some small donations from individuals working in a range of fields (many in education). But if small businesses are supporting the amendment in any significant numbers, they have yet to put their money where their mouth is.