Wall Street Journal Highlights Growing Tax Divide as Beacon Hill Falls Further Behind

As nine states ring in 2026 with lower income tax rates, Massachusetts continues to move in the opposite direction, clinging to policies that make the Commonwealth less competitive, less affordable, and less attractive to workers and employers.

In a New Year’s Eve editorial, The Wall Street Journal praised some states such as Ohio, Georgia, North Carolina, and Nebraska for enacting permanent income tax rate cuts rather than temporary rebates. The editorial warned that high-tax states like Massachusetts and New York are “constantly grasping for more of other people’s money,” accelerating interstate migration and economic decline.

“While other states are cutting income taxes to attract workers, retirees, and investment, Massachusetts is busy doing the opposite. Beacon Hill has at times paid lip service to our declining competitiveness, but its actions tell a very different story,” said Paul Diego Craney, Executive Director of the Massachusetts Fiscal Alliance.

According to the Journal, Ohio will enter 2026 with a flat 2.75 percent income tax rate, down from more than 5 percent a decade ago. Nebraska, Kentucky, Georgia, and several others are also cutting rates or moving toward flatter tax systems. In total, 14 states will soon have a single-rate income tax, and nine states will impose no tax at all on wage income.

Massachusetts, by contrast, recently adopted a surtax on income over $1 million and continues to advance costly mandates that raise the cost of living and doing business.

“These states understand a basic truth Beacon Hill refuses to accept: lower marginal tax rates encourage work, reward productivity, and keep people from leaving. High taxes don’t just punish success. They drive it away,” noted Craney.

The diverging paths have real consequences. Businesses weigh tax burdens when deciding where to expand or relocate, families consider taxes when choosing where to settle down, and retirees on fixed incomes are especially sensitive to finding states that take less of their savings. Those pressures are no longer theoretical for Massachusetts. As the Massachusetts Fiscal Alliance recently highlighted in response to New Hampshire lawmakers promoting their state’s no-tax advantage, neighboring states are actively marketing themselves as better alternatives while Beacon Hill gives employers and residents every reason to look elsewhere.

Voters in Massachusetts will soon have an opportunity to begin reversing this trend.

“A successful income tax reduction ballot question would be a clear signal that Massachusetts is ready to rejoin the national conversation on growth and affordability. If lawmakers won’t follow the successful examples set by other states, voters should lead,” said Craney.

The Massachusetts Fiscal Alliance urged State House leaders to take note of the growing national consensus around lower, flatter taxes and warned that continued inaction will only deepen the Commonwealth’s competitive disadvantage.

“Other states are planning for growth in 2026. Massachusetts is planning to stand still, and taxpayers are paying the price,” closed Craney.