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

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

Aki Balogh on How U.S. Diversity Drives Business

This week on JobMakers, host Denzil Mohammed talks with Aki Balogh, immigrant from Hungary and cofounder of MarketMuse, which created an artificial intelligence powered content intelligence and strategy platform; and cofounder of dlc.link, which aims to decentralize Bitcoin. Moving to the U.S. after fleeing post-communist Hungary, Aki and his family did whatever they could do to survive, and that included delivering newspapers and phone books, and even starting a computer repair business at 15, as a young teen.  Today, Aki is a pioneer in content intelligence technology and has created more than 90 jobs in the past eight years.

Chet Manikantan: Innovation Machine

This week on JobMakers, host Denzil Mohammed talks with Chet Manikantan, immigrant from India and founder of Aegis Studios, which builds crypto games. Chet was founder of a string of companies and a partner at two venture firms, but he was almost denied the opportunity to innovate and create jobs in the U.S. by our outdated immigration system, if not for a chance encounter that led to a workaround for select foreign-born entrepreneurs. And he’s keenly aware and grateful that this country gave him what he needed to succeed, as you’ll learn in this week’s JobMakers podcast. 

Pedro Zamora on Immigrant Entrepreneurs in Kansas City

This week on JobMakers, host Denzil Mohammed talks with Pedro Zamora, executive director of the Hispanic Economic Development Corporation of Greater Kansas City. Pedro and his organization work on initiatives that are crucial to the economic vitality of the area, and they’ve helped more than 4,700 businesses. Immigrants there are having an outsized economic and cultural impact, and so Kansas City is yet another example of how localities can bounce back and benefit from immigrants and refugees, as you’ll learn in this week’s JobMakers podcast.

Survey of Business Sentiment: MA Income Tax Hike Would Lead to Employer Exodus

Nearly three quarters (73 percent) of Massachusetts business leaders think business associates will leave the state if a constitutional amendment appearing on the November ballot to hike taxes is successful, according to a survey conducted by Pioneer Institute.

Looming Budget Crisis Reveals MBTA’s Dependency on Federal Funds

/
The MBTA is about to lose federal funding at a critical moment when ridership has not yet recovered. Will the state make up the difference?

Mei Xu on the Slow Burn to Success

This week on JobMakers, host Denzil Mohammed talks with Mei Xu, immigrant from China and founder of Chesapeake Bay Candle, which was acquired by Yankee Candle parent company Newell Brands for $75 million. Mei describes the journey to entrepreneurship, including a rough start, with dashed dreams and miserable timing that forced her to create opportunities for herself. Today, she seeks to empower women business owners around the world, to show them that they too can expand economies and horizons with a little guidance.

Cris Ramón on How to Build Up Immigrant Businesses

This week on JobMakers, host Denzil Mohammed talks with Cris Ramón, son of immigrants from El Salvador, immigration policy analyst, and coauthor of the new report, Immigrant Entrepreneurship: Economic Potential and Obstacles to Success published by the Bipartisan Policy Center.

Taxation Without Legislation: Exploring Inflation’s Causes, Curses & Cures

Hubwonk host Joe Selvaggi talks with Bloomberg Columnist and National Review Editor Ramesh Ponnuru about the reasons for the sustained spike in inflation, its impact on savers and consumers, the possible policy remedies, and the likely intensity and duration of this cycle.

Hubwonk360 Video: If we tax them, will they leave?

In this brief, six-minute video, Pioneer Institute Executive Director Jim Stergios and Director of Government Transparency, Mary Z. Connaughton, walk through an amendment to the Massachusetts constitution that could dramatically increase the income tax on retirees and small businesses.

Julie King Brings Authentic Mexican Cuisine to Boston

This week on JobMakers, host Denzil Mohammed talks with Julie King, immigrant from Mexico and founder of Villa Mexico Café in the financial district of Boston. They discuss the challenges of re-launching a career in a new country. It’s not atypical for an immigrant to start at a lower rung of the economic and social ladder than they previously enjoyed - but it’s a win when they persevere despite the pains, and thrive.