Latest IRS Data Shows MA Hemorrhaging People and Money at Alarming Rate
As the Tax Foundation releases its latest report highlighting patterns of migration of people and wealth between states, the Massachusetts Fiscal Alliance is drawing attention to the Commonwealth’s poor performance and calling on lawmakers to take action before it's too late. Using the latest data made available by the Internal Revenue Service, the Tax Foundation report finds that Massachusetts was the fourth worst state in the country for outmigration, with a net loss of 45,259 residents, 26,033 of which were tax filers, leading to an adjusted gross income (AGI) loss of over $3.9 billion dollars.
These numbers are pointing towards a devastating trend in our state. People are fleeing at an astronomical clip and taking their wealth and economic potential with them. The state can only plug the gaping budget hole being left by these economic producers with one time funding sources, tax increases, and raiding our savings accounts for so long.
Every county in Massachusetts saw a net loss of wealth, with the exception of Barnstable which only saw a very slight increase. Conversely, Rockingham County in New Hampshire, which has a relatively low population compared to its neighbors in eastern Massachusetts, saw a massive increase in its AGI of over $410 million. Rockingham is a border county that is easily accessible to Massachusetts residents and tends to be a top destination for people leaving Massachusetts. Modest growth in AGI would usually be expected, but a $410 million increase is astounding and should have Beacon Hill leaders extremely worried.
This is the warning. Massachusetts is heading into extremely turbulent economic waters, unless we change course. It’s time for Governor Maura Healey and legislative leaders to admit there is a problem and then confront it. The only way to stop the outflow of taxpayers is by cutting taxes and eliminating other taxes. The first tax that should be eliminated is the income surtax, it’s the driving force for our decline. The state can’t afford to ignore the problem any longer.