The Small Government Act to End the Income Tax
(2002 version)

Summary (as appeared on petition sheets and in the 2002 Official Massachusetts Information for Voters guide):

The proposed law would provide that no income or other gain realized on or after July 1, 2003, would be subject to the state personal income tax. That tax applies to income received or gain realized by individuals and married couples, by estates of deceased persons, by certain trustees and other fiduciaries, by persons who are partners in and receive income from partnerships, by corporate trusts, and by persons who receive income as shareholders of "S corporations" as defined under federal tax law. The proposed law would not affect the taxes due on income or gain realized before July 1, 2003.

The proposed law states that if any of its parts were declared invalid, the other parts would stay in effect.

Full text:

An Initiative Petition for a Law Known as The Small Government Act to End the Income Tax

Be it enacted by the people, and by their authority:

SECTION 1. This law, to be known as The Small Government Act to End the Income Tax, is enacted upon the following findings and declarations: The government of the Commonwealth of Massachusetts today is Big Government, and

1. Massachusetts Big Government programs do not work; all too often, they do not achieve their stated objectives; all too often they fail in their duties;
   
   
2. Massachusetts Big Government programs make things worse;
   
   
3. Massachusetts Big Government programs create new problems;
   
   
4. Massachusetts Big Government programs squander and waste; and
   
   
5. Massachusetts Big Government programs divert money and energy from positive and productive uses in the private sector.
   
   

Big Government has a harmful impact on those who rely upon it, and

1. Big Government promotes irresponsibility;
   
   
2. Big Government makes people weak and dependent; and
   
   
3. Big Government saps personal initiative and undermines the work ethic.
   
   

Big Government cannot work. It is inherently flawed and unreformable. High taxes feed and increase the size and scope of Massachusetts Big Government. High taxes reduce our standard of living and drive jobs out of Massachusetts. Government spending rises to meet government income. To dramatically shrink government spending, we must dramatically shrink government income. Ending the personal income tax is intended to dramatically shrink the revenue of the Commonwealth of Massachusetts. Ending the personal income tax is designed to be a bold step in making Massachusetts' government small. Small government leaves us free and unburdened to fashion our own lives, and

1. Small government is simple, cheap, and good;
   
   
2. Small government is thrifty and effective;
   
   
3. Small government is accountable and responsible;
   
   
4. There's no place to hide waste and corruption in a small government budget; and
   
   
5. Small government leaves us with the responsibility and the resources to manage our own lives, educate our children, protect our families, care for our neighbors, and assist the elderly.
   
   

SECTION 2. Chapter sixty-two of the General Laws, as appearing in the 2000 Official Edition, is hereby amended by inserting at the beginning of Section 3 of said Chapter sixty-two a new paragraph to read: "No income or other gain realized on or after July 1, 2003 shall be taxable, or subject to tax, under the provisions of this Chapter." Said Chapter sixty-two is hereby further amended by inserting the words "Subject to the introductory paragraph at the beginning of Section 3 of this chapter", followed by a comma, at the beginnings of each of Subsections (f), (g) and (h) of Section 2 of Chapter sixty-two."

SECTION 3. Section 4 of Chapter sixty-two B of the General Laws, as appearing in the 2000 Official Edition, is hereby repealed, effective July 1, 2003.

SECTION 4. Chapter sixty-two C of the General Laws, as appearing in the 2000 Official Edition, is hereby amended by inserting at the beginning of Section 6 of said Chapter sixty-two C a new paragraph to read: "The term 'taxable year' as used in this Section or Section 7 of this Chapter, and applied to a natural person or to a partnership consisting only of natural persons, shall not include any period beginning on or after July 1, 2003."

SECTION 5. This law is not intended to impair the operation of G.L. Chapter sixty-two E. Therefore, Section 2 of G.L. Chapter sixty-two E, as appearing in the 2000 Official Edition, is hereby amended by excising from the first sentence thereof the phrase "required to deduct and withhold taxes upon wages under the provisions of chapter sixty-two B" and the phrase "and any identification number such employer is required to include on a withholding tax return filed pursuant to said chapter sixty-two B."

SECTION 6. Notwithstanding the provision of Sections 2, 3 and 4 hereof, this law shall not be construed to impair the collection of moneys due the Commonwealth for income or other gain realized before July 1, 2003, nor shall it be construed to affect the responsibility of any person to comply with the requirements of G.L. Chapters sixty-two B or sixty-two C as either pertains to income or other gain realized before July 1, 2003.

SECTION 7. The provisions of this law are severable, and if any clause, sentence, paragraph or section of this chapter, or an application thereof, shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof but shall be confined in its operation to the clause, sentence, paragraph, section or application adjudged invalid.