House Leadership Moves to Punish Voters If They Dare Support Income Tax Relief

As members of the House head into the State House today for a formal session, Beacon Hill leadership is fast-tracking a $1.8 billion spending bill with little time for public review and using it as an opportunity to threaten voters who may consider supporting lowering the state income tax in a ballot question this fall.

It’s a fitting move for the least transparent legislature in the country to make during Sunshine Week, a time meant to highlight openness and accountability in government.

The supplemental budget, rushed out of committee Tuesday and scheduled for a vote Wednesday, includes language that would permanently decouple Massachusetts from key federal tax provisions if voters approve a ballot question to lower the state income tax rate from 5 percent to 4 percent.

This unprecedented move effectively ties the hands of future policymakers and denies Massachusetts taxpayers the benefit of federal tax relief passed by Congress and signed by the President of the United States, all in response to a potential decision by voters for a Massachusetts state ballot question. On one hand, both Congress and the President are sending tax relief and Massachusetts taxpayers may also vote to give themselves a pay raise by cutting the state income tax through a November ballot question; on the other hand, Massachusetts state lawmakers are trying to undermine these tax cut efforts by hollowing out some of the savings from the federal reductions based on what voters do at this November’s election on the proposed income tax ballot question.

“This is not fiscal responsibility. This is political retaliation against taxpayers. Beacon Hill leadership is telling voters that if they choose to lower their own taxes, the Legislature will step in and make sure they don’t see the full benefit. It’s petty, and an outrageous abuse of power,” said Paul Diego Craney, Executive Director of the Massachusetts Fiscal Alliance.

The rushed timeline of the bill underscores a broader lack of transparency. Lawmakers released their version of the $1.8 billion proposal on Tuesday and plan to vote on it Wednesday (today), leaving virtually no time for public review or debate.

Rather than preparing to live within taxpayers’ means, legislative leaders are preemptively rewriting tax policy to preserve spending levels and ensure voters would receive minimal benefit.

“They cannot help themselves. Even before the ink is dry on federal tax changes, Beacon Hill politicians are already scheming ways to block relief and keep more money in government hands. That’s exactly why voters are demanding change, change that actually delivers transparency with legislative audits, openness in public records, and policies that prioritize taxpayers over seemingly limitless growth in state government spending,” said Craney.

Estimates show the income tax reduction ballot question would save the average taxpayer roughly $1,300 annually. Instead of engaging in a serious conversation about affordability, lawmakers are attempting to undermine those savings.

“This is what happens when government grows too comfortable spending at unsustainable levels. The growth in state spending we’ve seen over the last decade is almost difficult to comprehend. Instead of adjusting, they lash out at taxpayers. Massachusetts families are struggling with high costs, slow job growth, and an affordability crisis. The answer is broad based tax cuts, not retaliation,” noted Craney.

The Massachusetts Fiscal Alliance is calling on lawmakers to remove the retaliatory tax language from the bill and allow voters to make their decision without interference.

“Voters should be free to decide whether they want lower taxes without Beacon Hill threatening retaliation. This kind of strong-arm politics has no place in a state that claims to value transparency and accountability,” closed Craney.