Mass. Income Tax Could Go To 4% Come November

This fall, you may get to vote yourself a tax cut.

A ballot question expected to appear on the November 3 ballot would lower the Massachusetts state income tax rate from 5% to 4%. It sounds like a small change, but for a lot of families in Berkshire County, it adds up.

Analysts say the typical Massachusetts household would save around $1,250 a year. If you bring home $50,000, you would keep about $500 more of it. If you earn between $25,000 and $75,000, expect to see somewhere around $474 back in your pocket annually. The cut would not happen all at once. It would be phased in over three years starting in 2027. -boston.com

The push comes from business groups who say Massachusetts has gotten too expensive. People are leaving the state for places with lower costs of living, and they want to do something about it. Hard to argue with the idea of paying less in taxes.

But here is where it gets complicated. Governor Maura Healey and most Democrats on Beacon Hill are against it. They say cutting the income tax would cost the state around $5 billion a year. That is not a small number. It is close to 12% of what Massachusetts brings in to pay for things like schools, roads, the MBTA, and health care. Opponents say something has to give if that money disappears.

Polls show voters like the idea. About 67% said they would support it in a recent survey.
The Legislature has until May to act on it. If they do not, supporters will need to gather more signatures to get it on the ballot in November.
Simple version: lower taxes, less government spending. Voters decide.