Advocacy Alert: MassCPAs Survey Finds MA is Rapidly Losing Residents
March 28, 2023
Last month, MassCPAs surveyed more than 270 CPAs on the impact of recent tax policy changes on high-income taxpayers (defined as MA residents with an annual taxable income more than $1 million). Respondents represent roughly 5,500 high-income taxpayers, over 20% of taxpayers impacted by the Millionaire’s Tax.
On March 28, we released the full report ahead of the Joint Committee on Revenue's hearing on Governor Healey's tax proposal. Key findings include:
- 82% indicated their clients have expressed leaving Massachusetts in the next 12 months. Florida and New Hampshire are the two most popular states for relocation.
- 61% indicated that tax policy is the primary reason their clients are considering leaving. More than 50% indicated the new Millionaire’s Tax is the primary reason to move.
- 65% indicated that raising the estate tax threshold to $5 million and adjusting annually for inflation is the single tax policy change most likely to deter relocation, though for some taxpayers a single tax policy change will not be enough to mitigate the impacts of the Millionaire’s Tax.
- The top tax policy changes to deter relocation include raising the estate tax threshold to $5 million with an inflation adjustment, reducing the short-term capital gains rate to 5%, and eliminating the Sting Tax on small businesses.
Click the links below to learn more: