Overview
- The Massachusetts Supreme Judicial Court ruled Thursday that the attorney general’s certified summary was “significantly misleading” because it said the proposal would not cut long-term capital gains taxes when current law ties those rates to the affected income tax rate.
- The decision remanded the case for a judgment declaring the summary unconstitutional and enjoined the Secretary of the Commonwealth from placing the measure on the 2026 statewide ballot.
- The initiative would have phased the flat personal income tax down from 5 percent to 4 percent over three years, but the court focused its ruling on the summary’s incorrect description of how that change would affect Part C long-term capital gains.
- Proponents called the ruling disenfranchising and said they may pursue procedural reforms or try again later, while opponents and state leaders praised the decision and cited concerns that the cut would chiefly benefit high-income taxpayers and reduce funding for services.
- The ruling leaves two practical paths forward: lawmakers can act to change the tax rates or statutes, or proponents can launch a new, corrected ballot campaign that addresses the court’s concerns about the summary.