A proposal to cut Massachusetts’ income tax rate from 5% to 4% is poised to appear on the November ballot and a recent Boston.com poll indicates significant public support for the measure. Seventy-eight percent of respondents said they would vote in favor of the tax cut, while 20% opposed it.
The proposed tax cut, spearheaded by James Stergios of the Pioneer Institute, a Boston-based think tank, would be phased in over three years, beginning January 1, 2027. An analysis by Tufts University’s Center for State Policy Analysis estimates the cut would reduce state revenue by approximately $5.1 billion annually – a roughly 10% decline – while providing the median Massachusetts household with an annual savings of around $1,250.
However, the financial impact of the cut would vary considerably based on income. Households earning less than $25,000 per year would see a modest benefit of about $69, while those with incomes exceeding $1 million would save over $37,000 annually, according to the Tufts analysis.
Governor Maura Healey has publicly opposed the measure, arguing it would jeopardize the state’s financial stability and hinder its economic competitiveness. “It’s a terrible thing to do,” Healey stated, according to reporting by Boston.com.
Supporters of the tax cut contend that the state’s issue isn’t a lack of revenue, but rather excessive spending. They argue residents should retain a larger portion of their earnings. This sentiment was echoed by numerous respondents to the Boston.com poll.
“The State budget will accept a hit, but We see bloated with unnecessary spending. More money in my pocket is a no brainer,” said a reader identified as K.T. From Hopkinton. Another reader, Rose from Westford, agreed, stating, “The state takes too much of our hard-earned money. They can learn to budget more responsibly.” Ray from Easton described the potential savings as “a stimulus without spending,” citing rising energy costs.
Concerns were as well raised about the potential impact on state-funded programs. Matthew S. From Cambridge expressed a desire to preserve existing programs, stating, “I value the programs that the state makes available, I don’t want to see them cut.” C.H.P. From Northampton voiced concerns about funding for schools and infrastructure, noting, “Most schools are starving for cash as-is. And who in this state would describe the roads as being in great condition?”
Pete from Newburyport, a resident who also owns a home in New Hampshire, argued that the tax cut could stem the outflow of residents leaving Massachusetts for states with lower tax burdens. “Massachusetts continues to hemorrhage residents to other states due its relentless pursuit of revenue and unwillingness to control spending,” Pete wrote.
Another anonymous reader from Quincy suggested a focus on fiscal discipline. “I am a strong believer in the ability of the government to help lift people up, and it requires taxes to achieve that. But Massachusetts’ problem is not lack of revenue, it suffers from poor fiscal discipline and oversight. Time and again we see wasteful spending of taxpayer money… The only option left is to restrict their revenue until they trim the largesse.”
Brian R. From Quincy echoed this sentiment, calling for a thorough review of state spending. “I believe the lack of fiscal responsibility and oversight is the main driver for our inability to fund programs the way the public elects politicians to allocate funding.”
Tyler W. From North Reading highlighted the financial pressures faced by middle-class households. “We live in a state that does not take care of its average middle-class household. I moved to NH for a year and came back. I felt for once that I was making a lot of money; no income tax saved me around $5L that year.”
Larry F. From the South Shore argued for greater individual control over finances. “I believe the individual should have more control over how their money is spent, not the government using it to fund programs that many do not benefit from or outright disagree with.”
Bryan M. From Boston asserted that government spending is unchecked. “Government spending is out of control at every level. There is no accountability. The state could easily operate on a 10-15 percent budget cut with no meaningful reduction in services that are actually needed.”
J.C. From Andover expressed a lack of trust in state government. “Our state government has not been transparent about its expenses, which can only indicate it has something to hide. The government has completely lost taxpayers’ trust. Individuals and businesses are leaving. Enough is enough.”
Not all respondents favored the tax cut. Jonathan B. From Newburyport expressed support for public services and a willingness to pay higher taxes to benefit lower earners. Jake from Salem cautioned against a drastic reduction in state income, citing potential unintended consequences. Kat from Fenway argued that taxes fund essential services that benefit everyone, even those who don’t directly employ them.
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