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 (#43 in the Tax Foundation’s State Tax Competitiveness Index), a factor that is driving 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, defending against efforts to increase taxes, and ensuring robust and sustainable fiscal management of state resources.

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, including our income tax and corporate tax rates and state-level estate tax. 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 also committed to ensuring that state tax dollars are spent efficiently and that the state lives within its means. The state budget has skyrocketed 51% in just seven years, outpacing both inflation and personal income growth and leading to a reliance on one-time revenues and calls for tax increases to sustain this ever-growing spending. Our efforts are focused on maintaining fiscal responsibility while ensuring continued investment in critical programs.

The Council has joined forces with like-minded business associations to advance two questions for the 2026 ballot that will begin to address the Commonwealth’s tax and spend problems: an income tax cut from 5% to 4%, and a reform to the state’s tax revenue cap formula to align budget growth more closely with inflation and household wage growth and ensure more consistent and predictable excess revenue refunds to taxpayers.

The High Tech Council is committed to working with policymakers to protect and enhance Massachusetts’ competitive strengths to accelerate capital investment and job creation while expanding opportunities for all. Through collaborations with leaders from government, industry, and academia, our efforts seek to elevate the quality of life for Massachusetts residents and harness the invaluable contributions of innovation sector employers to fortify the economic well-being and fiscal health of the Commonwealth.