The Same Year Beacon Hill Leaders Failed to Pass Tax Reform
A new report released by Allied Movers shows how people moved across the country and between all 50 states. According to Allied, their “Magnet States Report tracks migration patterns in the US. Data shows fewer people moved in 2022 compared to 2021. In fact, moves plummeted in every state, resulting in a 20 percent decrease over last year. Rising rents and interest rates, along with inflation and falling wages, meant people moved less in 2022 than they did during the coronavirus pandemic. Those who could afford to relocate, moved south and settled along the Sunbelt, which offered stronger economic opportunities and a lower cost of living than the West Coast or Northeast.” To read their report, click here.
For Massachusetts, the state saw a slightly higher level of outbound migration than inbound migration. According to the Allied report, approximately 80 percent of the time, the preference for where Massachusetts residents moved includes states that do not have an estate tax. The top three states were Florida, North Carolina, and California, all states that do not have an estate tax. The other states that made the list and do not have an estate tax were Texas, Georgia, Missouri, South Carolina, Colorado, and Michigan.
“Governor Maura Healey, and legislative leaders should worry when they see yet another report that shows Massachusetts residents fleeing to no estate tax states. 80 percent of the time, the states that do not have an estate tax are the top preference for where Massachusetts residents relocate,” noted Paul D. Craney, a spokesman for the Massachusetts Fiscal Alliance.
“It’s pretty obvious for a lot of Massachusetts residents that if you want to escape the Massachusetts estate tax, you do that by moving out of Massachusetts. For these residents that fled, they couldn’t wait any longer for tax reform from Beacon Hill leaders. For these residents, it’s not out of the question to imagine they watched Speaker Ron Mariano and Senate President Karen Spilka fail to pass reform to the estate tax, so they took matters into their own hands and moved out of Massachusetts,” continued Craney.
“If Governor Maura Healey, Speaker Ron Mariano, and Senate President Karen Spilka want to compete with other competitive states, the only way to do so is by eliminating the estate tax. These states have one thing in common and that is Massachusetts residents are drawn to them due to their no estate tax policy,” concluded Craney.