In this age of inflation many tax reduction plans have been proposed throughout the nation. This November Massachusetts voters will vote on Proposition 2 1/2 - a tax reduction proposal sponsored by a coalition of citizens.

This booklet describes the costs and benefits of Proposition 2 1/2 in an objective way, so that you can make an informed decision when you cast your vote. The University of Massachusetts' Center for Studies in Policy and the Public Interest and the Massachusetts Cooperative Extension Service believe that when you have access to unbiased information you will make better decisions and participate more fully in the democratic process. In this booklet we won't be telling you how to vote. Our sole purpose is to provide you with a way of understanding and evaluating the arguments that will be advanced by both opponents and proponents of Proposition 2 1/2 so that you can come to your own conclusions about its consequences.

We will address four key issues: What would Proposition 2 1/2 do? What would Proposition 2 1/2 not do? What impact would Proposition 2 1/2 have on what you pay in local taxes? What impact may Proposition 2 1/2 have on local services in your community?

However, before we get into these questions we will define and explain the basic terms relating to property taxation you must have some familiarity with if you are to follow and participate in the debate on Proposition 2 1/2 , and make an informed decision about its impact on your community.