Following news that Governor Maura Healey will be forced to make emergency cuts to the state budget, the Massachusetts Fiscal Alliance has released the following statement:

“This is the end result of the many poor economic decisions made by Beacon Hill leaders over the last year, beginning with the implementation of the income surtax amendment which they all supported, continuing with the ballooning our state budget past the rate of inflation, and culminating with the tepid tax relief package that did very little to actually make our state economy more competitive,” noted Paul D. Craney, a spokesman for the Massachusetts Fiscal Alliance.

In 2023, at the same time that Massachusetts enacted a new income surtax amendment and decided to impose a marriage penalty on residents, fourteen other states moved to lower their income taxes. Neighboring New Hampshire put a plan into motion to eliminate their tax on interest and dividends all together, the last remnant of their own income tax. New Hampshire is one of the leading destinations for the outflow of people and wealth that Massachusetts has seen occur over the past year.

“Our economy thrived for years under a flat tax structure, and we likely could have continued to thrive. Instead, Beacon Hill leaders pigheadedly allowed our competitive edge—the flat tax—to be eliminated and we’re paying the price now. If they want to avoid more budget cuts in the future, it’s essential that Beacon Hill moves to take bold action and move for broad-based tax relief to stem the outflow of Massachusetts residents and businesses,” said Craney.

“As the state is faced with nearly $400 million in budget cuts, lawmakers are being forced to continue to pass supplemental spending plans to fund services and welfare programs for the thousands of immigrants that continue to make their way all the way up to Massachusetts from the southern border. As taxpayers are forced to tighten our belts and make cuts to our state budget, it’s time Governor Healey, Senate President Spilka, and Speaker Mariano begin to call on President Joe Biden to secure our southern border. The next time the Governor goes back to the legislature for additional funding for immigration, it should come with strict residency requirements for the ‘right to shelter’ law benefit in order to help stop making Massachusetts such a magnet state. Massachusetts clearly no longer has the resources to continue the policy of funding President Biden’s open borders,” concluded Craney.