Editorial Staff

Pioneer Institute and the Tax Foundation File Amicus Brief in Graduated Income Tax Ballot Initiative Case

/in , , , /by Editorial Staff
Share on Facebook
Share on Twitter
Share on
LinkedIn
+

Brief argues that Proposition 80 violates the state constitution, would result in harmful fiscal policy

BOSTON – PioneerLegal, Pioneer Institute’s public-interest law initiative, together with the Tax Foundation, has filed an amicus brief with the Supreme Judicial Court in support of the Massachusetts High Technology Council and others, in the case Christopher Anderson et al. v. Maura Healey.

The plaintiffs assert that Proposition 80, a ballot initiative to install a graduated income tax for Massachusetts, violates the state constitution and should not be allowed to appear on the Commonwealth’s November ballot.

Proposition 80 calls for adding an additional 4 percent state tax on all annual taxable income above $1 million and earmarking the resulting revenue specifically for transportation and education.

The brief argues that Proposition 80 violates the state’s constitution, which forbids initiative petitions from bundling multiple, unrelated provisions and usurps the Legislature’s exclusive authority over the state treasury. It contends further that passage of the measure would result in poor and risky fiscal policy.

Proposition 80 combines three unrelated provisions: a tax increase, an appropriation for transportation, and an appropriation for education. Drafters of the state constitutional provision on initiative petitions sought to ensure that petitions express a single unified public policy statement that voters could accept or reject, and specifically sought to prevent the bundling of unpopular provisions like a tax increase with more popular ones such as increasing education and transportation funding.

The state constitution also forbids initiative petitions from including a “specific appropriation,” defined as seizing all revenue from a designated source and appropriating it for a specified use – in this case, transportation and education.  The provision is designed to ensure that special interests don’t usurp legislative control of the state treasury.

In 2014, a computer and software services tax was enacted to help balance the state budget. When it was shown to negatively impact the Commonwealth’s economy, the Legislature quickly repealed it.

In 2000, state voters approved a ballot initiative to reduce the state income tax to 5 percent by 2003.  When the economy cratered soon after its passage, the Legislature stepped in and froze the rate at 5.3 percent.

Since Proposition 80 would amend the state constitution, such swift action would be impossible.   The process of amending the constitution again to change or repeal Proposition 80 would take a minimum of three years.  This form of budgeting by ballot initiative is a textbook example of depriving the government of the flexibility required to efficiently address changed circumstances and unexpected crises.

“There’s a reason why setting fiscal policy by constitutional amendment is almost universally condemned,” said Pioneer Executive Director Jim Stergios.

The brief also cites research by Pioneer and other entities showing that states like Connecticut and New Jersey that enacted similar policies actually saw adverse economic consequences within just a few years.

“This tax increase would catapult Massachusetts from the middle of the pack to among states with the highest capital gains rate in the nation.  It would also significantly increase the taxes paid by many small pass-through businesses and encourage ‘tax flight’ by individual taxpayers,” said John Sivolella, Senior Fellow in Law and Policy at Pioneer, who leads PioneerLegal. “The overall effect would be to inhibit financial growth in the Commonwealth, and adversely affect state revenues.”

About Pioneer

Pioneer Institute is an independent, non-partisan, privately funded research organization that seeks to improve the quality of life in Massachusetts through civic discourse and intellectually rigorous, data-driven public policy solutions based on free market principles, individual liberty and responsibility, and the ideal of effective, limited and accountable government.

Get Updates on Our Economic Opportunity Research

Related Research

New Report Shows Massachusetts Has Been in Economic Slow Down Since 2020

A new report from Pioneer Institute shows that Massachusetts has been in an economic slowdown since 2020, with the professional, scientific, and technical services sector (PSTS) exhibiting the greatest slowdown relative to competitor states since 2022. This sector includes scientific research and development, computer systems design, engineering, and scientific consulting firms. 

Connecticut’s H.B. 5002: A Stark Contrast With Massachusetts’ Approach to Housing Reform

This edition of The House Call discusses a pending bill in Connecticut that both requires municipalities to plan for more affordable housing and preempts local zoning rules on small multi-family buildings and parking requirements. The newsletter also explores the possible effects of banning landlords from imposing "broker's fees" on residential tenants.

Pioneer Public Interest Law Center and New England Legal Foundation Unite Under New Banner: Pioneer New England Legal Foundation

The Pioneer Public Interest Law Center (Pioneer Law Center) today announced its strategic alliance with the New England Legal Foundation (NELF), as the Pioneer New England Legal Foundation (PNELF). Building on a common mission of advancing educational opportunity, government transparency and free enterprise, PNELF will expand services to defend and promote these freedoms across and beyond New England. 

New Study Cautions: Rent Control Offers Short-Term Relief, But Steep Long-Term Costs

A new Pioneer Institute study finds that while rent control can lower rental housing costs and help vulnerable tenants remain in their homes, it also carries steep long-term consequences—including reduced housing quality, lower property values, fewer new housing units, and higher rents for non-controlled apartments. 

New Report Warns: Massachusetts Facing Alarming Decline in Private Sector Employment Growth

While nearly every state has expanded private sector employment since the onset of the COVID-19 pandemic, Massachusetts is an outlier in experiencing a net decline in private sector job growth, posing significant risks to the state’s economic health and long-term prosperity, according to a new policy brief published by Pioneer Institute. 

Massachusetts Releases New Permanent Regulations for MBTA Communities Act

The April edition of The House Call provides an update regarding the MBTA Communities Act's implementation, with some communities amending their zoning via either referendum votes or Town Meeting this spring. The newsletter also includes a discussion of communities that have eliminated minimum parking requirements in recent years.

Historical Domestic Migration Patterns: Putting Massachusetts in Context

This week's edition of Mapping Mass Migration features an analysis of newly released data from the Census Bureau, its March supplement of the Current Population Survey. Our analysis covers how migration trends have played out nationally since 1948, including the demographics of movers, the extent of their migration (within a county, across counties, to another state, etc.), and the most common reasons movers cite for changing their primary residence. The newsletter concludes with a brief discussion of what might account for a decline in overall migration rates nationally and where Massachusetts fits in.

Pioneer Institute Study Finds Outdated U.S. Immigration System Delays Creation of 150,000 Businesses and 500,000 Jobs

Global competitors seizing opportunities to attract top talent

The House Call – Cambridge Adopts a Zoning Ordinance Allowing 4 to 6-Story Residential Buildings Citywide

The March edition of The House Call covers recent zoning changes in Cambridge that allow 4 to 6-story buildings on every residential lot. It also summarizes reform recommendations from a state commission tasked with advising the Healey administration on how to ramp up housing production.

Study: Inclusionary Zoning Helps Some, but Can Jeopardize Broad-Based Affordability

Policies often force developers to raise market-rate prices to compensate for losses on affordable units

Pioneer Institute Study Says MA Housing Permitting Process Needs Systemic Reform

Highlights Bureaucratic licensing process and appeals as areas to fix

Mapping Mass Migration – New 2024 Census Estimates Show Surge in Population Growth, With Considerable Caveats

This week's edition of Mapping Mass Migration will cover 2024 state population estimates and components of change from the Census Bureau, how trends are impacting Massachusetts, and an analysis of how a methodological change significantly impacted their estimates for net international migration from 2022 to 2024 and what that means for the number and demographic backgrounds of immigrants captured in the data.