Beacon Hill Democrats bristle at proposed ballot question to lower the income tax

Top Beacon Hill Democrats lined up in opposition Tuesday to a potential ballot question that seeks to lower the state income tax, after economic experts warned the measure could erase billions of dollars in tax revenue.

The Massachusetts Opportunity Alliance, a business-friendly nonprofit, is trying to place the ballot question before voters in next year’s statewide election. The group argues that lowering the income tax from 5% to 4% will help alleviate the affordability crisis the state is facing.

But state Rep. Aaron Michlewitz, a North End Democrat and the top House budget writer, called the proposal “irresponsible,” and pointed to fiscal challenges Massachusetts is already facing, like the loss of federal funding under President Trump and growing health care costs.

“These questions would only benefit high-end earners and would require either dramatic spending cuts or other tax increases in order to maintain the commonwealth’s fiscal stability,” Michlewitz said at a State House revenue hearing.

Christopher Anderson, an organizer of the ballot initiative and president of the Massachusetts High Technology Council, defended the proposal in a statement to WBUR.

“With employers and workers facing a weakening business climate, this is a moment for the Legislature to partner with the public on policies that grow the economy, not shrink it,” he wrote. “A broader tax base, higher take-home pay, and a more competitive tax rate will help Massachusetts remain a place where families and businesses can thrive.”

Secretary of State William Galvin’s office still needs to certify whether organizers collected enough signatures to advance the proposed ballot question. That decision could come as soon as this month.

If voters pass the measure next year, officials at the Massachusetts Department of Revenue said the state could expect to lose between $4.2 billion and $4.8 billion in tax revenue.

For comparison, Massachusetts is projected to collect roughly $24 billion in personal income tax revenue this fiscal year, according to the Department of Revenue.

Matthew Gorzkowicz, budget secretary for Gov. Maura Healey, said the potential impact of the proposed ballot question is “nothing to be taken lightly.”

Pulling nearly $5 billion from the budget would have a “significant impact on programs and services,” he said.

State Sen. Michael Rodrigues, a Westport Democrat who serves as the chief budget official in his chamber, made his objection to the proposed question clear to reporters after the hearing.

“Referendum questions are not the way to bluntly change tax code, and so I'm absolutely opposed to the reduction in the income tax,” he said.