Massachusetts Millionaire’s Tax: A Mixed Picture of Wealth and Exits
Boston, MA – The implementation of Massachusetts’ Millionaire’s Tax, which imposes an additional 4% levy on annual incomes exceeding $1 million, has sparked debates over its impact on the state’s affluent residents. Notably, former Boston Celtics star Grant Williams opted for the Dallas Mavericks in 2023, citing the tax as a factor in his decision.
However, new data suggests that the narrative of wealthy individuals fleeing the Bay State may be misleading. An analysis from the Institute for Policy Studies and State Revenue Alliance reveals a 35.2% increase in ultra-wealthy residents—those with a net worth of at least $50 million—between 2022 and 2024, growing from 1,954 to 2,642 individuals. Furthermore, the total number of millionaires in the state surged by 38.6%, from 441,610 to 612,109.
According to Omar Ocampo, the report’s lead author, the Millionaire’s Tax has not only met but exceeded revenue expectations, generating resources to support essential funding for education and transportation. Democratic Governor Maura Healey’s proposed $62 billion budget heavily relies on these funds to enhance public programs, including investments in the MBTA.
Despite the positive figures, some critics, such as the Massachusetts Fiscal Alliance, argue that the tax undermines the state’s economic competitiveness. Spokesperson Paul Craney warned that wealthier individuals could be drawn to more tax-friendly states like New Hampshire and Florida.
Yet proponents assert the tax is an important step towards reducing wealth inequality and enhancing public services. The Fair Share Amendment reportedly added 171,000 millionaires since its introduction, challenging claims that the wealthy are leaving Massachusetts in droves.
As the debate continues, it remains clear that the Millionaire’s Tax is fostering significant discussions on economic equity and state revenue in Massachusetts.
Note: The image is for illustrative purposes only and is not the original image of the presented article.
