The Massachusetts Supreme Judicial Court (SJC) ruled that a proposed ballot question to reduce the state income tax rate from 5% to 4% cannot appear on the November ballot. The court found that Attorney General Andrea Campbell’s required voter summary was not “fair” because it incorrectly suggested that capital gains income would not be affected by the tax cut.
Justice Serge Georges Jr., writing for the court, stated that the summary was significantly misleading because Massachusetts law ties the long-term capital gains tax rate to the general income tax rate. As a result, the proposed measure would have reduced taxes on both wages and most long-term capital gains.
The proposal was backed by major business organizations, including the Massachusetts High Technology Council, Massachusetts Competitive Partnership, and Pioneer Institute. Supporters argued the ruling deprives voters of the opportunity to decide an important tax policy, while opponents maintained that an inaccurate summary violated constitutional requirements.
Legislative leaders and unions had opposed the measure, warning it could reduce annual state revenue by up to $5 billion and threaten public services. Supporters are considering resubmitting the proposal for a future ballot.