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

SECTION 1. The purpose of this law is to encourage personal savings in the Commonwealth. The personal income tax rate on earnings from savings, whatever its form, shall be no higher than the lowest statutory rate charged on income from wages and salaries.

SECTION 2. Subsection (a) of Section 4 of Chapter 62 of the General Laws, as appearing in the 1996 Official Edition, shall be amended by adding the following at the end thereof: "provided, however that any interest and dividend income subject to this paragraph shall be taxed at the same rate as provided for in subsection (b) of this section".

SECTION 3. The provisions of this act shall apply to tax years beginning on or after January 1, 2000.