Massachusetts 2026 Gubernatorial Race

Every biotech IPO could make a few new millionaires. Every year some big law partners cross the threshold as well. Your model seems to focus on the existing pool of rich people and not account for the HBS grad who’s 6 years away from making 7 figures. Attracting talent, being friendly to entrepreneurs, and fixing the damn housing issue could slow any outmigration issue and continue to draw in people of all kinds.

I love NH and FL but they simply can’t compete on the talent level that makes MA special.
 
Justbuildit said:
Every biotech IPO could make a few new millionaires. Every year some big law partners cross the threshold as well. Your model seems to focus on the existing pool of rich people and not account for the HBS grad who’s 6 years away from making 7 figures. Attracting talent, being friendly to entrepreneurs, and fixing the damn housing issue could slow any outmigration issue and continue to draw in people of all kinds.

I love NH and FL but they simply can’t compete on the talent level that makes MA special.
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Yes, exactly. It's not like MA only just suddenly became a higher tax state. We are and remain one of the most desirable places in the nation for successful people to live and work. If we focus on the fundamentals rather than get caught up in the race to the bottom on taxes we'll be just fine.
 
Justbuildit said:
Every biotech IPO could make a few new millionaires. Every year some big law partners cross the threshold as well. Your model seems to focus on the existing pool of rich people and not account for the HBS grad who’s 6 years away from making 7 figures. Attracting talent, being friendly to entrepreneurs, and fixing the damn housing issue could slow any outmigration issue and continue to draw in people of all kinds.

I love NH and FL but they simply can’t compete on the talent level that makes MA special.
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I’m a big law partner who practices in biotech. Trust me we can (and do) move to and work from Florida! 5%->9% is an 80% increase in tax rate.

Many business owners (tech and biotech) folks will move before selling or exercising stock options and generating big money. So Mass will never see that.

Many folks will travel here but live elsewhere and work remotely in order to avoid being subject to Mass income taxes.

5% is ok but 9% is outrageous when you add to everything else.

Plus the data wont show it yet but it does take some time for people to be able to move and get tax residency elsewhere to a level of certainty in those income levels.
 
TallIsGood said:
I’m a big law partner who practices in biotech. Trust me we can (and do) move to and work from Florida! 5%->9% is an 80% increase in tax rate.

Many business owners (tech and biotech) folks will move before selling or exercising stock options and generating big money. So Mass will never see that.

Many folks will travel here but live elsewhere and work remotely in order to avoid being subject to Mass income taxes.

5% is ok but 9% is outrageous when you add to everything else.

Plus the data wont show it yet but it does take some time for people to be able to move and get tax residency elsewhere to a level of certainty in those income levels.
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I brought it up because my father, who is a biotech exec in Boston, moved to NH because of the millionaires tax. (Many of his current and former colleagues at his pay grade have done similar) He saves around 80-90k a year living in Salem NH which pays off the price of buying a 2bed condo in just over 5 years. He only commutes once or twice a week so the 10 minute increase in his commute (versus living in Andover) is negligible. The quality of life difference of living in an MA suburb and NH or FL just isn't enough to discourage people from moving to states with favorable taxes.
The average lifestyle for a millenial or young gen X would obviously be different but for people 55+ moving away is very attractive.
 
22marc said:
I brought it up because my father, who is a biotech exec in Boston, moved to NH because of the millionaires tax. (Many of his current and former colleagues at his pay grade have done similar) He saves around 80-90k a year living in Salem NH which pays off the price of buying a 2bed condo in just over 5 years. He only commutes once or twice a week so the 10 minute increase in his commute (versus living in Andover) is negligible. The quality of life difference of living in an MA suburb and NH or FL just isn't enough to discourage people from moving to states with favorable taxes.
The average lifestyle for a millenial or young gen X would obviously be different but for people 55+ moving away is very attractive.
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While anecdotal this is why I say people are leaving mass (or not coming or structuring timing of gains around it) and it’s all because of the 80% increase. Remember it goes from 9% to 0% when we go. That pays for the second house.
 
TallIsGood said:
5%->9% is an 80% increase in tax rate.
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Okay, but do you understand how marginal tax rates work? That's not remotely an 80% increase in your effective tax rate. You still pay 5% on the first million. If you make above $1 million, the additional 4% is only for the amount above that level. So if you made $2,000,000, your tax liability goes from $100,000 to $140,000, which is to say a 40% increase. Sure, maybe that's enough to make you move to Florida if you are one of the few people earning that much income. I can't really speak to that, but at least understand how the tax actually works before you make that decision.
 
22marc said:
I brought it up because my father, who is a biotech exec in Boston, moved to NH because of the millionaires tax. (Many of his current and former colleagues at his pay grade have done similar) He saves around 80-90k a year living in Salem NH which pays off the price of buying a 2bed condo in just over 5 years. He only commutes once or twice a week so the 10 minute increase in his commute (versus living in Andover) is negligible. The quality of life difference of living in an MA suburb and NH or FL just isn't enough to discourage people from moving to states with favorable taxes.
The average lifestyle for a millenial or young gen X would obviously be different but for people 55+ moving away is very attractive.
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After a quick perusal of Zillow, living in a Salem NH condo on a ~$1.5m annual income just to die with a few more toys gives off some serious Hetty Green vibes.

And all triggered by a ~$20k increase in his total MA obligation.
 
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Taxes are just one cost among many, remember. In FL, for example, you're probably living in an HOA, and HOA costs are huge there. Same with insurance, which is only going to get higher as the state gradually becomes completely uninsurable, at least the coastal parts.

I can think of a lot of costs - golf club membership, private school tuition, boat storage, airfares at local airports (or available fights - probably not great to live in NH if you're flying internationally from Logan every couple of weeks), etc. that can add up in ways that challenge these tax burdens. I don't know what they are or which way they point, but state income tax is not determinative on its own.
 
It's also important to note that MA income taxes are paid on income earned in MA, no matter what state one lives in. Simply moving across the board to NH and commuting to a job in MA isn't enough to avoid MA taxes.

Moving out of state will help avoid MA taxes on income earned out of state or non-payroll income (like capital gains).
 
HenryAlan said:
Okay, but do you understand how marginal tax rates work? That's not remotely an 80% increase in your effective tax rate. You still pay 5% on the first million. If you make above $1 million, the additional 4% is only for the amount above that level. So if you made $2,000,000, your tax liability goes from $100,000 to $140,000, which is to say a 40% increase. Sure, maybe that's enough to make you move to Florida if you are one of the few people earning that much income. I can't really speak to that, but at least understand how the tax actually works before you make that decision.
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Yeah as a CPA and an attorney, I certainly understand marginal tax rates. Marginal rates are on the last dollar of income. So an 80% increase. Effective rates are blended on overall income.
 
Equilibria said:
Taxes are just one cost among many, remember. In FL, for example, you're probably living in an HOA, and HOA costs are huge there. Same with insurance, which is only going to get higher as the state gradually becomes completely uninsurable, at least the coastal parts.

I can think of a lot of costs - golf club membership, private school tuition, boat storage, airfares at local airports (or available fights - probably not great to live in NH if you're flying internationally from Logan every couple of weeks), etc. that can add up in ways that challenge these tax burdens. I don't know what they are or which way they point, but state income tax is not determinative on its own.
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I’m well aware of the costs but other costs are lower. Overall it’s cheaper to live there for me. Reduced taxes cover the mortgage plus.
 
JumboBuc said:
It's also important to note that MA income taxes are paid on income earned in MA, no matter what state one lives in. Simply moving across the board to NH and commuting to a job in MA isn't enough to avoid MA taxes.

Moving out of state will help avoid MA taxes on income earned out of state or non-payroll income (like capital gains).
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Correct, so income from business in other states and countries is now free of Mass tax.
 
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