Editorial Staff

As States Compete for Talent and Families, Massachusetts Experienced a Six-Fold Increase in Lost Wealth Compared to a Decade Earlier

/in , , , , , /by Editorial Staff
Share on Facebook
Share on Twitter
Share on
LinkedIn
+

With competition for businesses and talent heating up across the country, in 2020 Massachusetts shed taxpayers and wealth at a clip six times faster than even just a decade ago. Between 2010 to 2020, Massachusetts’ net loss of adjusted gross Income (AGI) to other states due to migration grew from $422 million to $2.6 billion, according to recently released IRS data now available on Pioneer Institute’s Massachusetts IRS Data Discovery website. Over 71 percent of the loss was to Florida and New Hampshire, both no income tax states.

“Massachusetts is hemorrhaging money and talent to low-tax states,” said Pioneer Institute Executive Director Jim Stergios. “This is no time to go back to tax policies that will make the Bay State less attractive to businesses and families.”

Ten states have already passed tax cuts and 13 more are considering such changes, including Virginia, where Governor Youngkin has made no secret of his push to make Virginia more affordable to employers and families. Yesterday, Raytheon, one of Massachusetts’ largest employers, announced that it will move its headquarters to Virginia.

In 2020, Massachusetts lost over 10,000 income tax filers to two states with no income tax: 5,900 to Florida and 4,300 to New Hampshire, compared to 1,600 and 1,200, respectively, in 2010. The county with the largest 2020 net loss of wealth, amounting to more than $900 million in AGI, was Middlesex, which abuts no-income tax New Hampshire.

Get Updates on Our Economic Opportunity Research

Related Posts

This Is No Time for a Tax Increase

This is no time to threaten Massachusetts’ prospects for an immediate economic recovery and the long-term competitiveness of the Commonwealth’s businesses. As Massachusetts lawmakers prepare to vote on whether to send a proposed constitutional amendment that would impose a 4 percent surtax on residents who earn $1 million or more in a year to the statewide ballot in 2022, Pioneer Institute urges them to recognize that tax policy sizably impacts business and job location decisions and that jobs are more mobile than ever.

Jitka Borowick on Starting a Small Business during COVID

0 Comments
/
This week on JobMakers, Guest Host Jo Napolitano talks with Jitka Borowick, Founder & CEO of Cleangreen, a cleaning service committed to environmentally-friendly practices, and Nove Yoga, launched during COVID. Jitka grew up under communism in the Czech Republic. Determined to learn English, she made her way to the U.S., initially with plans to stay for only one year - but ended up making it her home. Jitka shares the difficulties of learning another language and culture, her pathway to entrepreneurship, her courageous decision to open a new business during a pandemic, and how her companies have successfully adapted to the challenges so many small businesses have encountered over the past year.
Are Massachusetts taxes regressive? Massachusetts State with Money Background

Study Finds Deep Flaws in Advocates’ Claims that the Massachusetts Tax Code is Regressive

Proponents of a state constitutional amendment to add a 4 percent surtax on all households with annual income above $1 million frequently cite 2015 data from the Institute on Taxation and Economic Policy, which argues that the Massachusetts tax code is regressive, but a new study published by Pioneer Institute debunks many of the underlying assumptions used in ITEP’s 2015 report.

Josh Feast Answers the Call with AI

This week on JobMakers, Guest Host Jo Napolitano talks with Josh Feast, the CEO and Co-Founder of Cogito, a Boston-based software company that deploys Artificial Intelligence (AI) to help employers in a wide variety of industries improve their customer service call centers. They discuss the many applications of Artificial Intelligence, how it helps provide emotional intelligence to augment management practices at large organizations, and how to address some of the concerns about privacy and bias that have been raised around its use.

Mahmud Jafri Builds on a Pakistani Legacy in America

This week on JobMakers, Host Denzil Mohammed talks with Mahmud Jafri, who built on a legacy started by his grandfather and began importing hand-knitted rugs from his native Pakistan, creating opportunities especially for women who traditionally couldn’t work outside the home. Today, he has three Dover Rug & Home stores across Massachusetts, including the Back Bay.

Pipelines Are Infrastructure: Colonial Incident Reveals Dark Side of Cyber Vulnerability

This week on Hubwonk, Host Joe Selvaggi talks with cyber security expert Dr. Brandon Valeriano about the Colonial Pipeline shutdown and our national exposure to cyberattack on vital infrastructure.

Larry O’Toole on Workplace Culture & Immigration Policy

On this week's episode of JobMakers, host Denzil Mohammed talks to Larry O’Toole, founder of the multi-state Gentle Giant Moving Company that started in 1980 right here in the Boston area. They discuss Mr. O'Toole's journey at a young age from Ireland to Brookline, Mass., the challenges of being uprooted, and the ability to thrive despite barriers such as skills gaps, that many immigrants face.

Fair Share Amendment: Weighing Costs & Benefits for Massachusetts’ Economy & Workers

Hubwonk host Joe Selvaggi talks with Pioneer Institute’s Executive Director Jim Stergios about HB86, the so-called Fair Share Amendment, to tax Massachusetts household income above $1 million. They discuss its promises, its costs, and the effects of similar legislation in other states.

Amar Sawhney on Sikhs, STEM & COVID

On this week's episode of JobMakers, host Denzil Mohammed talks to Dr. Amar Sawhney about his journey from India to Boston, and how he is using his chemical engineering background to save lives through remarkable local therapy innovations. To date, he has founded eight companies accounting for 4,000 jobs and more than $2 billion in revenue.

Study Says Interstate Tax Competition, Relocation Subsidies Exacerbate Telecommuting Trends

A spate of new incentive and subsidy programs seeking to lure talented workers and innovative businesses away from their home states could constitute an additional challenge to Massachusetts’ economic and fiscal recovery from COVID-19, according to a new study published by Pioneer Institute.