Colin A. Young
State House News Service

House leaders expect voters to give themselves an income tax cut if an advancing ballot question makes it to November and said Wednesday that raising taxes and cutting spending would both be on the table should the reduction come to pass.

House Speaker Ronald Mariano told reporters that the provision in the supplemental budget the House plans to pass Wednesday that makes implementation of federal tax code changes contingent upon the state's income tax rate staying at or above 5% was not meant as an attempt to get ballot question backers to drop the question.

"It was the realization that we're going to need the money, that we both think that there aren't many people out there that're going to go to the polls and ... not vote to give themselves a tax cut," Mariano said, gesturing at House Ways and Means Chairman Aaron Michlewitz to his left. "So we think it's going to pass and creates a whole set of other problems for us that we have to deal with."

Michlewitz said the House will send additional messages about what steps leadership thinks are necessary should the question, which seeks to step down the income tax rate from 5% to 4% over three years, pass. He pointed out that it would take effect in the middle of the budget year he is trying to plan for right now.

"To make sure that we're at least preparing for that conversation, we need to be start thinking creatively on solutions. And I think this is, this is one of them," he said. "I think there may have to be more going forward. This isn't the last of it."

Asked if raising other taxes could be among the legislative responses to an income tax rate cut, Mariano said it could be.

"That would be an option, and cuts would be an even better option in some respects," the speaker said.

Some ballot questions never make it to November because proponents are able to negotiate with lawmakers for an alternative that satisfies them without bringing the issue directly to voters. Mariano said he has not made any attempts to get the question's supporters to discuss a compromise.

"We've had conversations with some of these folks to understand, you know, what their approach is related to it, but I don't think there's been any definitive talks of a compromise at this moment," Michlewitz said.

Opponents of the tax cut say it would decimate state services and programs by removing about $5 billion in revenue. Supporters see it as a direct way to stimulate the economy and help people face affordability woes.