As Massachusetts voters pondered a “millionaire tax” in the fall of 2022, a coalition of big businesses and wealthy entrepreneurs rallied against it. Among their arguments: The new tax would cause ultra-high-net-worth individuals and their businesses to flee, ultimately costing the state far more money than it raised.
It didn’t happen. From 2022 to 2024, as the new surcharge on incomes over a million dollars went into effect, the number of Massachusetts individuals with at least $50 million in total wealth grew by more than 35%, and the number of people making at least $1 million went up 40%. Meanwhile, the state took in an additional $2.46 billion in tax revenue for 2023 alone, money earmarked for education and transportation programs.
