Final answer:
Massachusetts' tax policy in the late 1780s posed a significant burden on farmers, leading to Shays' Rebellion. The grievances were about unfair taxation, excessive legal fees, and the government's disconnect with the struggling classes. The state attempted programs to alleviate these pressures, but public unrest indicated the measures were not entirely effective.
Step-by-step explanation:
The question deals with the taxation policies of Massachusetts, particularly during a period of economic crisis in 1786-1787. This historical context refers to the difficulties faced by farmers in that period, leading to Shays' Rebellion. The grievances included the refusal to accept farm goods as payment for debts and taxes, excessively high taxes and legal fees, and a perception that state government officials were overpaid.
This led to high levels of debt among farmers, hence influencing public policy. The situation of Massachusetts farmers was exacerbated by unfair taxation, which seemed to favor the wealthy and the powerful at the expense of the poorer classes, including farmers.
The policies did not allow for payment in kind with agricultural produce, resulting in an insurrection led by Daniel Shays to prevent the loss of farmers' lands and to advocate for a fairer tax policy.
Massachusetts tax policy during this period had various implications: it was not considered fair to all taxpayers, it hit farmers hard, and the resistance to it led to a significant historical event but did not necessarily have major positive effects towards reducing debt.
Policy attempts like the “Green Sprouts” program aimed to prevent small farmers from falling into debt by providing seed at lower interest rates than those charged by landlords or Buddhist temples.