Proposed reduction would provide relief to taxpayers, average savings of $1,300

The Massachusetts Fiscal Alliance responded today to Governor Maura Healey’s announced opposition to the proposed ballot question that would gradually reduce the state income tax from 5 percent to 4 percent. This proposal would give an average of $1,300 a year back to taxpayers.

The broad-based tax reduction proposal would return meaningful relief to working families and small businesses across the Commonwealth while helping Massachusetts reduce the cost of living.

“Massachusetts residents are struggling under some of the highest costs of living in the country, and Governor Healey’s first instinct is to protect government spending rather than provide broad based tax relief. Reducing the income tax is a reasonable, responsible step that lets taxpayers keep more of what they earn. A tax cut is a pay raise for hard working taxpayers,” said Paul Diego Craney, Executive Director of the Massachusetts Fiscal Alliance.

Governor Healey has claimed the proposal would devastate the state budget and force cuts to education and local aid. However, state spending has surged in recent years, growing far faster than household income.

“Families and small businesses are tightening their belts every day due to inflation, taxes, and rising energy costs from the NetZero climate mandate. State government should be willing to do the same,” said Craney.

Massachusetts continues to lose residents, jobs, and investment to low tax or no tax states. Many small and mid-sized businesses pay taxes through the personal income tax system and would directly benefit from a lower rate.

“Tax relief helps employers grow, boosts take home pay, and encourages workers to stay in Massachusetts. This proposal would give an average of $1,300 a year back to taxpayers. That’s a significant pay raise for taxpayers. If Beacon Hill is serious about affordability and economic opportunity, reducing the state income tax is the quickest way in doing so,” continued Craney.