The taxation and spending policies of individual states are an increasingly important differentiator in the global competition for job creation and investment. Massachusetts currently ranks poorly in terms of business tax climate, a factor that is driving high-income taxpayers and businesses out of the state.

The Massachusetts High Technology Council is committed to improving Massachusetts’ competitive standing by advocating for less burdensome tax policies and ensuring robust and sustainable fiscal management of state resources.

A significant portion of Massachusetts’ tax revenue is derived from economic activities within tech-driven industries, which in turn enables the Commonwealth’s investments in key infrastructure, programs, and services.

Tax policy plays a vital role in influencing where people live, work, and where companies choose to operate, especially at a time when barriers to exit for talent and firms are at historic lows.

In recent years, many states have revised their tax laws to attract new talent and businesses. Massachusetts has passed some tax reforms, but we remain an outlier on several key tax measures, and the state also passed a significant tax increase. Without meaningful efforts to modernize its tax policy to reflect new economic realities—such as resident and business migration and the rise of remote work—the Commonwealth’s ability to compete with other states will continue to erode.

The Council is committed to ensuring that state tax dollars are spent efficiently and that the state lives within its means, opposing reliance on one-time revenues to balance budgets and fund ongoing expenditures. Our efforts are focused on maintaining fiscal responsibility while ensuring continued investment in critical programs.

Explore our comprehensive policy briefings to stay informed on the latest fiscal and tax policy developments impacting Massachusetts.