Taxation & Fiscal Management

Taxation & Fiscal Management

The taxation and spending policies of individual states are an increasingly important differentiator in the global competition for job creation and investment. The Council is committed to improving Massachusetts’ competitive standing by (1) making the Commonwealth’s tax policies less burdensome; and (2) ensuring strong fiscal management.

A significant share of Massachusetts’ tax collections is generated through economic activity from technology employment and industry, which in turn enables the Commonwealth’s investments in key infrastructure, programs, and services. How Massachusetts manages its investments is likewise an important factor for employers who seek to do business in states with strong financial management and reliable governance to meet public service needs.

Tax policy is an especially salient factor influencing where people live and work and where companies locate today. This is more relevant than ever as barriers to exit for talent and many innovation economy firms are historically low.

Amid strong tax collections, significant federal resources, and rising inflation, many states are reimagining their tax laws to provide relief to residents and employers and to attract new talent and businesses. As the data on our 50-State Competitiveness Dashboard shows, Massachusetts is already starting from a tough position regarding its tax environment, ranking 40th out of all 50 states. It will only get more difficult to compete with other states if the Commonwealth doesn’t make meaningful efforts to modernize its tax policy to reflect new economic realities in resident and business migration, remote work policies, and other shifts born out of pandemic-related trends.

2022 Tax Hike Amendment

The Massachusetts Legislature’s cleverly worded Tax Amendment to the State Constitution will appear on the November 2022 statewide ballot. If passed, it would be one of the state’s highest tax increases in history and immediately impose an 80% tax increase on tens of thousands of small business owners, large employers, and retirees. Not only would it damage our economy, cause more lost jobs, and a Massachusetts exodus, but it would also give politicians a blank check to spend billions of taxpayer dollars however they want, with no accountability.

Taxation & Spending Policy Priorities

The Council supports policies that ensure Massachusetts’ tax environment is fair, predictable, competitive, and positions the Commonwealth to raise sufficient revenue to invest in shared priorities like education, transportation, and other critical public services. We support policies that ensure Massachusetts’ public spending and borrowing is efficient and sustainable.

Oppose efforts to increase business and personal income taxes, including the proposed Tax Hike Amendment to the Massachusetts Constitution. Learn more about our efforts against the Tax Hike Amendment here

Advocate for common sense tax reforms to make Massachusetts more competitive, including reducing our short-term capital gains tax rate and raising the threshold for application of the estate tax

Support corporate tax policies at the state and federal level that enhance Massachusetts companies’ ability to compete globally

Provide guidance to lawmakers on effective use of federal resources and revenue surplus funds

Support efforts to enhance the financial health and stability of the Commonwealth through fiscally disciplined policies related to public expenditures, budgeting, and public debt

Related Resources & Materials

Massachusetts FY23 Budget
Massachusetts Fiscal Year 2023 (FY23) Budget Summary
July 27, 2022 | Mass. High Tech Council

On July 17, 2022, the Massachusetts Legislature unanimously passed a $52.7 billion budget for Fiscal Year 2023 (FY23). See a summary of the FY23 budget here.

Is Massachusetts Headed Back to Taxachusetts? Examining the Damaging Impacts of the Legislature’s Tax Hike Amendment
Is Massachusetts Headed Back to Taxachusetts? Examining the Damaging Impacts of the Legislature’s Tax Hike Amendment
August 1, 2022 | Mass. High Tech Council, Pioneer Institute

In collaboration with Pioneer Institute, the Council explores the impact of the Legislature’s Tax Hike Amendment following a recent MHTC Policy Series program on Pioneer’s new book, Back to Taxachusetts?

The Council’s Public Policy Agenda

The Massachusetts High Technology Council is focused on sustaining the Commonwealth’s innovation economy amidst an ever-changing shifting federal and state policy context.