BAY STATE BUILDER MAGAZINE: How Can We Revitalize Massachusetts’ Business Climate?

By Christopher R. Anderson

This piece originally appeared in the Bay State Builder Magazine in the Winter 2025 edition.

Massachusetts is a wonderful place to live and raise a family. But rising taxes and an increasingly high cost of living are hurting residents and businesses alike. If we don’t change course, we won’t be able to keep current residents here or draw in new ones. And that’s a problem for everyone in the Commonwealth.

The unfortunate truth is that Massachusetts has become a difficult place for businesses of all sizes to thrive.

That’s why the Massachusetts High Technology Council, the Massachusetts Competitive Partnership, and the Pioneer Institute came together to form a new nonprofit organization dedicated to defending and strengthening our state’s business climate. It’s called the Mass Opportunity Alliance (MOA).

We began this group in response to the decline in Massachusetts’ competitiveness in recent years. Consider that in 2024, we saw the Commonwealth drop from 15th place all the way to 38th place in CNBC’s annual ranking of the best states for business, and recent analysis even shows that Massachusetts has a disproportionately high rate of business closures compared to business openings.

Given the current state of affairs in Massachusetts, it’s no wonder residents are decamping to less expensive states like New Hampshire and Florida. Recent reports from U-Haul and United Van Lines found that Massachusetts was one of the states with the most one-way moves out-of-state.

In fact, we recently released a survey of former Massachusetts residents who have since relocated to Florida or New Hampshire. It found that two-thirds of those who left did so because of the high cost of living, with housing costs in particular playing a motivating factor for nearly half of respondents.

Seventy-one percent of respondents cited taxes as a main factor pushing them to leave Massachusetts. Across income levels and political parties, taxes were far and wide the number one issue. This also tracked with polling MOA did in September that found that a whopping 82 percent of Massachusetts residents felt that their taxes were too high.

When businesses struggle, the entire economy feels the downstream effects. No matter where you are on the career ladder or which industry you are in, or hoping to enter, limited opportunities lead to stagnation for everyone.

Losing residents, particularly the wealthier ones, means that those who remain are left shouldering the burden of these high taxes. But, it’s not just about state tax revenue. Retaining top talent is crucial for maintaining and growing a dynamic and innovative workforce.

Massachusetts is at a crossroads. Of course, we have several strengths, including fostering excellent education systems and promoting innovation. But without an affordable cost of living and a business-friendly climate for companies of all sizes, it won’t be enough to turn the tide.

We’re working with residents, business owners, and trade associations across the state to create a unified voice dedicated to fighting to make Massachusetts more advantageous for everyone. Together, we know we can ensure long-term prosperity for all in the Commonwealth.

You can learn more at MassOpportunity.org or follow us on social media @MAOpportunity.