A coalition of union leaders and community activists has filed a lawsuit to block a proposed reduction in Massachusetts’ personal income tax rate from 5% to 4% over three years. The lawsuit claims the petition wording was “misleading and deceptive,” failing to mention that the cuts would apply to all income tax categories, including capital gains taxes. Plaintiffs argue that the tax cuts would primarily benefit the wealthiest 1% of taxpayers, leading to “massive state budget cuts” that would harm public services. Lew Finfer, director of Massachusetts Action for Justice, said: “With this lawsuit, we’re standing up for the right of voters to know what they’re voting on.” Meanwhile, supporters of the tax cut maintain that it will provide significant relief to working families and help improve the state’s economic competitiveness. A report from the Massachusetts Budget and Policy Center estimates the tax cut could result in a $5bn revenue loss for the state.
