Taxation-State and Local Commons^™

The Massachusetts Fiscal System: Structure And Performance, Padraig O'Malley, Raymond G. Torto

Padraig O'Malley

On November 4, 1980 the citizens of Massachusetts, by a vote of 59% to 41%, resoundingly endorsed a tax reduction plan known as Proposition 2 1/2. All communities in the Commonwealth were faced with an immediate reduction in their local revenues due to the immediate cut in the excise tax that Proposition 2 1/2 called for, and up to 130 communities will have to implement a 15% reduction in their tax levies for FY 1982. Already there are protestations from many local officials that they cannot make the required tax cuts without severely reducing the level of local services. The …