The Nation - News from Dec. 10, 1986

Gov. Michael S. Dukakis signed a bill repealing Massachusetts’ 11-year-old surtax, which helped the state recover from a $500-million budget deficit in the mid-1970s. Massachusetts enjoyed a $540-million budget surplus for fiscal 1986, and the improvement allowed the state to enact the $135-million tax cut and helped Dukakis win reelection. The surtax initially levied an extra $7.50 for every $100 paid in state income taxes. Without it, individuals will save an average of $100 when they pay 1986 state income taxes.