Massachusetts voters will face eight referendum questions on the Nov. 7 ballot. Five of
these questions offer significant opportunities or present particular hazards for the
Commonwealth. After meeting with proponents and opponents of these measures, the Community
Newspaper Company editorial board offers these recommendations.
Question 4: Income tax rate reduction
A prosperous economy has done wonders for state finances. The state's bond rating has been
upgraded and its rainy day funds have been filled, expanded and filled again. Billions of
dollars in surpluses have been put to good use: increased spending on education and health
care, worthwhile capital improvements. Taxes have been cut 40 times, strengthening the
state's businesses and putting money into the pockets of its residents.
Those cuts are good, but not quite enough. A U.S. Census study released last month found
Massachusetts state taxes the fifth highest in the country. Like other factors that
contribute to the high cost of doing business in this state, our income tax rate -- the
highest in the country -- puts us at a competitive disadvantage that could hurt the economy
down the road.
Question 4 will reduce the income tax rate, over three years, from 5.8 percent to 5 percent,
costing the state $1 billion in revenues when fully implemented. Reputable analysts confirm
that the state can afford the lost revenue without cutting spending. Opponents can cite a
long list of worthy projects the state could spend that money on: smaller classes, better
health care, paying down the debt or repairing crumbling schools. But defeating Question 4
won't do any of those things. It will just put more surplus cash into the hands of a
Legislature that cannot be counted on to spend it wisely.
We recommend a YES vote on Question 4.