MassFiscal Calls for Real Leadership, Not Empty Rhetoric

In response to Governor Maura Healey’s whiplash-inducing reversal on her unexpected openness to reevaluating the state’s economically damaging income surtax, the Massachusetts Fiscal Alliance is calling out the Governor for failing to show leadership on one of the most pressing economic issues facing the Commonwealth.

On Tuesday, during the Boston Globe’s Tech Innovation Summit, Governor Healey surprised observers by acknowledging growing concerns about the impact of the surtax. When asked whether she would oppose a hypothetical effort to repeal the income surtax—a policy widely blamed for driving wealth and opportunity out of Massachusetts—the Boston Globe reported that she stated, “No, I think we need to evaluate what’s going on, and I want to see the numbers. I just want to see what’s happening in terms of any potential outmigration.”

But just 24 hours later, amid political pressure and public confusion, State House News Service reported that Healey hastily walked back her remarks, declaring, “No, I don’t support repealing the surtax,” and insisting her administration is merely “looking at the data.”

“If Governor Healey was interested in undoing the economic damage from the income surtax she endorsed in 2022, she would have already done something about it. Instead, she gaslights her audience with more meaningless words. Her brief moment of honesty was quickly swallowed by political fear and special interest backlash,” said Paul Diego Craney, Executive Director of the Massachusetts Fiscal Alliance.

Despite growing evidence that the surtax is accelerating outmigration of high-income earners and weakening Massachusetts' competitive position, Beacon Hill leadership continues to double down. The surtax, which was sold to voters as a tool for improving transportation and education, has instead created a volatile tax regime that repels investment and punishes success. Legislative leaders are beginning to use the surtax funds for pet projects in their districts, a far cry from what they advertised during the 2022 ballot question.

“The Governor’s comments confirm what we’ve said all along: even she knows this policy is doing more harm than good. Massachusetts deserves a leader who will act on data—not duck behind it when the political heat rises,” noted Craney.

“Governor Healey needs to call for the surtax to be repealed. Anything less is completely unacceptable. The tax’s existence is doing nothing more than taking away more money from hardworking people, stifling investment and private sector growth. The data is clear, the facts are obvious, and the tax needs to be repealed,” concluded Craney.

With billions in surtax revenue being hoarded while working families struggle under the burden of a shrinking tax base and rising costs, MassFiscal urges Beacon Hill to repeal the economy-destroying surtax amendment and restore tax sanity and competitiveness to the Commonwealth.