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Not fleeing: New report shows more wealthy residents in Mass., 2 years into 'millionaire's tax'
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Yes, it's Monday again. But on the bright side, it's going to be a warm, sunny day after (another) a weekend of rain.
Now, let's get to the news:
Staying and paying: It's been about two years since Massachusetts voters approved a "millionaire's tax" on wealthy residents in the state. But despite previous concerns, the tax hasn't seemed to deter high-earners from continuing to live here, according to a new study from the Institute for Policy Studies, a progressive research group. Using data from Wealth-X, researchers found the number of residents with a net worth of $1 million or more has increased by nearly 40% since the tax went into effect.
- Remind me again, what's this tax? Voters narrowly approved a 4% surtax on incomes over $1 million in a statewide ballot referendum in November 2022. Advocates pushed, saying the new tax would bring in over $1 billion a year in new revenue to fund programs like free school lunches for students and free community college for state residents. But critics said it would likely force millionaires to leave the state.
- The verdict: The verdict: The new report found the number of millionaires in Massachusetts has actually grown since 2022, from 441,610 individuals to 612,109 in 2024. It also found that the number of ultra-wealthy Bay Staters — those with at least $50 million or more — grew by 35%, from 1,954 to 2,642. The millionaires' tax also greatly surpassed its projections in the first year, generating S2.46 billion for the state in 2023 alone. State officials expect it to haul in the same amount of revenue annually. "This is further evidence that multi-millionaires are not fleeing the state in response to the new tax," said Shanique Rodriguez, executive director of the Massachusetts Voter Table.
- Omar Ocampo, a researcher on the study, told WBUR's Amy Sokolow that anyone who has left to avoid the tax does not highlight the bigger picture. Those being taxed are a "very small minority" of the population, said Ocampo. "This is not to deny that there will be people who move. It's inevitable," said Ocampo. "But I would argue that it's very statistically insignificant."
Back on the water: The MBTA's ferry service to Quincy and Winthrop has returned for the season — with some changes, WBUR's Andrea Perdomo-Hernandez reports.
- The Winthrop/Quincy ferry was originally a combined route, which would stop at each city before heading to Boston. But thanks to the addition of two new ferry boats (still in need of names), the MBTA will now offer each route separately. That means riders get direct service to and from Boston, with stops at Seaport and Logan Airport.
- When to ride: You can take either ferry on weekdays from 6 a.m. to 8 p.m., now through November. They run about hourly during the morning and evening commutes.
On Beacon Hill: This week, state lawmakers review an amendment to the state budget that seeks to raise the personal needs allowance for elderly and disabled long-term care residents. Advocates have been calling on the state to raise the allowance from $73 monthly to $113 to adjust for inflation. (That change would be an increase of about $1.33 per day). Sen. Mark Montigny has also introduced a bill that would tie future adjustments to inflation.
- Massachusetts has the second-lowest personal needs allowance in New England, despite having the highest cost of living, according to the Boston Globe.
Baby boom: Zookeepers say more than a dozen prairie dog pups have been born at the Franklin Park Zoo over the last month. And now, they’re ready for visitors to come take a peek as they emerge from their burrows for the first time. We won’t know exactly how many pups were born until the end of May, but for now, you can steal a glance at these cute rodents the next time you’re at the zoo.
P.S. — Calling all "Buffy the Vampire Slayer" fans: Podcast hosts Jenny Owen Youngs and Kristin Russo will be at CitySpace at 7 p.m. tomorrow night for a live taping of "Buffering the Vampire Slayer," a discussion on the cult classic show and its enduring impact. Grab your tickets here.
Correction: This post has been updated to clarify that the WealthX study tracked the number of millionaires in Massachusetts by net worth, not by annual income.
