Boston, MA — The two 2026 ballot proposals filed today—one to lower the state income tax from 5% to 4% over three years, and another to strengthen the state’s tax revenue cap (“62F”)—represent concrete steps to return billions to taxpayers and restore Massachusetts’ economic competitiveness. According to fiscal modeling by the Mass Opportunity Alliance (MOA), of which Pioneer Institute is a founding member, the income tax reduction alone would save the average taxpayer more than $1,300 annually.
Pioneer Institute is uniting with taxpayers and businesses across the Commonwealth to champion these two ideas as part of a broader effort to put Massachusetts back on a path toward affordability, job creation, and long-term economic health.
“These are practical steps to bring relief to Massachusetts families, workers and businesses,” said Jim Stergios, executive director of Pioneer Institute. “We are watching talent and capital steadily leave the state, as the state budget has ballooned far beyond growth in the income of Massachusetts households. These proposals aim to restore balance, empower taxpayers, and boost long-term competitiveness.”
Key Challenges for Residents and Businesses
These initiatives respond to mounting data, media coverage, and polling showing that Massachusetts has become too expensive and less competitive for jobs, talent, and investment. Consider just three recent data points from Pioneer’s research:
Job Loss: Massachusetts is one of only four states to lose private-sector jobs over the past five years—down nearly 30,000—while states like North Carolina added over 250,000 jobs.
Falling Growth: Once among the top states for GDP growth, ranking 4th in the U.S. (1998–2019), Massachusetts has dropped to 28th since then.
Outmigration of Young Talent: High living costs are driving out 26- to 34-year-olds, weakening the state’s future workforce.
“The state budget has far more than doubled since 2010, while weekly wages for the average Massachusetts resident has increased by about half that amount,” said Adam Portnoy, Chair of the Pioneer Board of Directors. “The burden has shifted too far, too fast. These reforms are about restoring balance—and keeping more people and capital in the state.”
Broad Support Across Political Categories
Public opinion data support the urgency—and popularity—of the measures. MOA-commissioned polling conducted in July 2025 shows strong bipartisan support across all income brackets:
75% of voters support the income tax cut, including strong majorities of Democrats, Independents, and Republicans.
74% support reforms to strengthen the revenue cap law, signaling deep concern over state spending and tax burdens.
Economic Impact
A phased reduction of the state income tax from 5% to 4% would save the average taxpayer approximately $1,300 annually. That relief comes at a time when many families are feeling the squeeze from rising housing, energy, and grocery costs. MOA modeling also shows that reducing the income tax rate to 4% could yield up to $17.5 billion in GDP growth within three years.
Restoring teeth to the state’s 62F revenue cap—by requiring more frequent refunds when revenues surge—would return billions to the taxpayers who drive that growth. Under the proposed reform, 24 refunds would have been issued over 40 years, not just two—imposing greater discipline on Beacon Hill and better aligning state spending with household income. In 2022, Governor Charlie Baker used 62F to return over $3 billion to taxpayers—showing both the statute’s promise and the need for greater consistency.
A Path Forward
The coalition emphasizes that these ballot measures are not radical, but practical. They build on the same voter-driven instincts that led to the original 62F tax cap and the phased reduction of the income tax in the early 2000s. In both cases, voters acted to preserve Massachusetts’ long-term economic health—and these measures continue that tradition.
“These are common-sense proposals with the potential to re-anchor Massachusetts’ economy around growth, opportunity, and taxpayer respect,” added Stergios. “They reflect the same spirit that made Massachusetts an economic leader in the first place.”
About Pioneer Institute
Pioneer empowers Americans with choices and opportunities to live freely and thrive. Working with state policymakers, we use expert research, educational initiatives, legal action and coalition-building to advance human potential in four critical areas: K-12 Education, Health, Economic Opportunity, and American Civic Values. As a non-profit research organization, Pioneer Institute does not support or oppose ballot initiatives, it shares data and research on public policy ideas that can strengthen the Commonwealth’s future. Learn more at www.pioneerinstitute.org.
|