On March 30^th, the Special Joint Committee on Initiative Petitions heard testimony on H.5007 An Act to Reduce the State Personal Income Tax Rate from 5% to 4%. MTF was asked to provide expert testimony on the proposal, which would reduce state tax collections by the largest amount in recent Massachusetts history. This Bulletin expands upon MTF’s testimony by explaining what the ballot question proposes and provide an overview of how the proposed change relates to four topics that could be top of mind for voters:

The impact of the question on residents;

The impact of the question on the state’s economy and competitiveness;

The impact of the question on state tax collections; and 

The impact of the question on the state’s public finances and operations.

This Bulletin is intended to provide information and context essential for policymakers and the public.