Massachusetts Income Tax Cut Proposal Sparks Divide: Sharp Criticism from Lawmakers, Silence from Healey

BY SAM DRYSDALE

The House budget chief on Tuesday ripped a proposed income tax cut as “irresponsible,” but on Wednesday Gov. Maura Healey declined to take a position on the possible tax cut that could go before voters next year.

Asked by reporters if she shares House Ways and Means Chair Aaron Michlewitz’s views about a possible ballot question that would lower the state’s income tax rate — saving workers up to $4.8 billion and removing the same amount from state government, according to Department of Revenue estimates — Healey did not directly align herself with either side of the debate.

“What I’d say right now is we are focused — I don’t know what will happen with the ballot question — but right now, we’ve got to file a budget that takes account of devastating cuts by the Trump administration and the impact that those cuts are going to have on our budget and on budgets around the country,” Healey said. “That’s what we’re focused on right now.”

Healey’s response contrasted sharply with the more pointed assessments offered a day earlier by Democratic legislative leaders. 

Michlewitz warned that reducing the income tax rate from 5% to 4% could collide with economic uncertainty and force painful tradeoffs, calling the proposal an “irresponsible” step given the pressures on the state budget. Senate Ways and Means Chair Michael Rodrigues echoed that view, saying he “mirrors” Michlewitz’s concerns and arguing that referendum questions are a blunt instrument for changing tax policy.

Administration and Finance Secretary Matthew Gorzkowicz, Healey’s top budget official, struck a measured but still cautionary tone after Tuesday’s revenue forecasting hearing. 

“Certainly pulling out what we’ve heard today through testimony from DOR, almost $5 billion from our budget would have a significant impact on programs and services, so nothing to be taken lightly,” he said. DOR estimated the proposal would shrink annual revenues by between $4.2 billion and $4.8 billion.

Healey, who is expected to seek reelection in 2026, avoided engaging directly with those critiques as she emphasized near-term budget challenges. Her careful posture comes as the income tax proposal shows strong public support in polling and as the early contours of the next gubernatorial race begin to take shape.

A Suffolk University/Boston Globe poll released in November found 67% of respondents supported lowering the income tax rate to 4%, while just over 23% said they opposed the idea. Support crossed partisan and income lines, underscoring the political sensitivity of the issue heading into an election year.

One of Healey’s possible opponents, Republican Mike Kennealy, weighed in Tuesday with a statement blasting Michlewitz for labeling the ballot initiative irresponsible. Kennealy framed the proposal as overdue relief for taxpayers and accused Democratic leaders of prioritizing spending growth over affordability.

With legislative leaders staking out firm opposition and the governor declining to tip her hand, the debate over income tax cut impacts on residents and state government appears poised to intensify as the state heads toward the 2026 election cycle.