SENTINEL & ENTERPRISE: Finally, a group ready to take on state’s tax-and-spend mentality
By Sentinel & Enterprise Editorial
Originally appeared in the Sentinel & Enterprise on September 27, 2024
It didn’t take long for this state’s infamous former label, “Taxachusetts,” to make a comeback.
To combat that image, expressed most recently by passage of the 4% surtax on income exceeding $1 million, some prominent business groups and executives have established what hopefully will become a powerful new coalition, a counter weight to what they see as high-tax policies that have contributed to the challenges facing the state’s economy.
High-profile executives in Greater Boston have raised millions of dollars and garnered support for the Mass Opportunity Alliance, an organization that seeks to highlight the tax burden, and high costs of doing business and living in Massachusetts.
Its goal, as reported by The Boston Globe, is to improve the state’s competitiveness by changing public opinion through its lobbying efforts.
The leadership of this nascent organization includes the heads of the Massachusetts High Technology Council, known for its anti-tax efforts, the conservative Pioneer Institute think tank, and the Massachusetts Competitive Partnership.
All three founding members joined many other business groups that unsuccessfully fought against the millionaires tax that voters barely approved in 2022.
The group’s creation serves as a reaction expressed by the business community that Massachusetts has lost ground to rival states, including neighboring New Hampshire, for which Beacon Hill has yet to formulate an answer.
“The alarm bells went off after the millionaires tax passed,” Suffolk Construction owner John Fish, one of several big MOA donors, told the Globe.
“There were a lot of regrets from the business community. What could have happened? What could have been done? … And I think that was a wake-up call.”
Fish and others say they’re concerned that the extra tax on high earners convinced people they know to leave the state, while high housing costs and other expenses continue to drive away many middle-class residents.
That’s more than just a perception. According to published reports, Massachusetts sustained a net loss of nearly 40,000 people to other states in the most recent data-available year.
The pro-business Tax Foundation recently ranked Massachusetts 46th in the nation, a significant fall from previous middle-of-the-road ratings.
And a tax-reform package passed by state lawmakers last year, which slightly lowered the capital-gains tax and lifted the estate-tax threshold, likely won’t move the needle on that opinion.
Some potential donors likely were reluctant to underwrite the opposition to the millionaires tax because that couldn’t be done anonymously.
But as a 501(c)6 nonprofit, the Mass Opportunity Alliance need not name those who contribute to its cause.
While the organization can lobby state government leaders, it can’t endorse political candidates. Campaign finance laws prevent the MOA from getting involved in ballot campaigns this fall, including the business-backed effort to defeat a question that would eliminate the MCAS test as a high-school graduation requirement.
But the alliance could make ballot question donations in future cycles, according to Chris Anderson, president of the Mass. High Tech Council.
Among the first initiatives planned: an “Opportunity Report Card” that will regularly measure the state’s competitiveness across several key indicators, from business dynamics to education to the cost of living.
Also in store: a monthly poll to keep abreast of residents’ opinions about everything from the hardship posed by local taxes to why people would consider leaving the state.
Despite the region’s surplus of business associations, Anderson said there’s no one group solely focused on competitiveness — as opposed to also hosting events, member services, and training.
“This is going to be hyper-focused only on issues of economic growth, stemming the loss of talent, and building prosperity,” said Jim Stergios, Pioneer’s executive director.
The wave of hybrid and remote work ushered in by the COVID-19 pandemic threatens Massachusetts because many workers can now choose to live in other, less expensive locations.
Meanwhile, political and business leaders in many lower-cost states – including Texas, Florida and North Carolina – do their best to lure Massachusetts talent and companies.
“Bricks and mortar no longer matter. As a result, you see places that you’d never thought we would be in competition with catching up and in some cases exceeding us in certain areas,” said Jay Ash, chief executive of the Massachusetts Competitive Partnership.
Of course, the MOA will have its detractors, especially progressive leaders who contend concerns about competitiveness are exaggerated.
Supporters of the millionaires tax, formally called the Fair Share Amendment, say it has lived up to expectations, bringing in $2 billion in revenue in its first year earmarked for education and transportation.
Meanwhile, the left-leaning Mass. Budget and Policy Center just issued a report claiming that younger people are leaving at a faster pace than the wealthy.
That’s certainly plausible, given the state’s high cost of living.
However, while younger people constitute individual job seekers, wealthier, entrepreneurial individuals create those jobs – employment opportunities they will take elsewhere.
There will always be a surplus of individuals and organizations in this blue state pressing to take more money out of workers’ pockets for their progressive causes.
It’s about time we had one pro-business, taxpayer-friendly group willing to offer comprehensive counter arguments as to why that approach simply isn’t sustainable in the economic environment in which Massachusetts must compete.
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Want to learn more about opportunity in Massachusetts?