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Boston Globe
5 days ago
- Business
- Boston Globe
Healey opened the door to tweaking the ‘millionaires tax.' Now what?
Jim Stergios — executive director of the right-leaning Pioneer Institute that opposed the millionaires tax — was thisclose to issuing a press release praising Healey. Then reality set in. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up The next day the governor — who as a then-candidate supported the Fair Share Amendment ballot initiative that created the millionaires tax — clarified her thoughts, telling Advertisement Now if you were in the audience, as I was, Healey came across as someone who has been getting an earful from business leaders about the impact of the tax — hearing that entrepreneurs might not want to start their businesses here, companies are having a hard time recruiting senior executives, and wealthy individuals are uprooting to Florida, New Hampshire, and other states without income taxes. Advertisement And while Healey did not give a full-throttled rejection of the millionaires tax, she was doing what any good leader should do: Listen, take notes, and review what's not working. 'I'm going to look at ways to lower costs, including what other tax reforms are necessary,' she said. 'I want Massachusetts to be a place where people are attracted to come and grow, and make money and succeed and do well. So I think we need to be open to that, to be open to looking at what we need to do within our existing tax regime that will make us more conducive to that.' Hundreds of attendees gathered both in-person and online for the Globe Tech Innovation Summit in Boston last week. Michael Manning Photography Anyone who has followed the millionaires tax debate knows that, for the business community, this is what counts as a victory, after And during the seven-year push to get the millionaires tax on the ballot, its pros and cons have been well litigated, both in court and in the court of public opinion. Voters approved the tax because they want better schools and a functioning T, and now that billions of dollars in new tax money is flowing, it's hard to see Beacon Hill giving it up. Nothing gives But what the opposition is saying now is that an idea that was conceived before the pandemic feels more ill-conceived today. 'We need to recognize that the millionaires tax was a concept that was put forward in far different economic time,' said Jay Ash, CEO of the Massachusetts Competitive Partnership, whose business group opposed the tax. 'COVID made the world much smaller ... now everyone can operate from anywhere.' Advertisement Employees and companies have choices they may not have a few years ago. Between the high cost of doing business and a I don't see business leaders marching in the streets demanding a repeal of the millionaires tax. They're smarter than that. Rather, they're playing the long game: Here's Had the Massachusetts private sector created 250,000 jobs during that period like North Carolina did, we would have generated an additional $1.3 billion in state income and sales tax revenue, according to Pioneer Institute analysis. John T. C. Lee, CEO of MKS Inc. and chair of the Massachusetts High Technology Council, says he knows a few people who've moved away to avoid the millionaires tax. He's also seen the surtax hurt recruiting, with a couple of job candidates deciding not to work at MKS, an Andover company that supplies equipment and components to computer chip makers. Advertisement 'Whether it's revisiting, repealing, whatever, I think it is worth looking at the data,' said Lee. 'The best thing is that we look at the facts, and the facts steer us towards one direction or another.' The Fair Share Amendment ballot initiative created the millionaires tax. 52 percent of voters approved the tax by a clear margin in 2022. Pat Greenhouse/Globe Staff Data will be key, and so far it's all too early to weigh the benefits of the millionaires tax against the costs, Meanwhile, any effort to repeal the tax would take years, requiring an amendment to the state constitution and votes by two successive Legislatures, followed by a citizen ballot question. And it would clearly draw a fight from powerful labor groups, who outspent the business community the first time around. Another option: lower the base income tax rate for everyone to something below 5 percent. That'd be a tough sell to Beacon Hill because income taxes are the primary source of revenue for the state budget. The bottom line: Repealing the millionaires tax isn't on the table yet, but make no mistake the push to chip away at it has already begun. Shirley Leung is a Business columnist and host of the Globe Opinion podcast 'Say More with Shirley Leung.' Find the podcast on , , and . Follow her on Threads Advertisement Shirley Leung is a Business columnist. She can be reached at
Boston Globe
5 days ago
- Business
- Boston Globe
Mass. startups are plotting how to counter Trump cuts, grow local tech economy
Tufts president Sunil Kumar recalled the region's success building tech and biotech startups around Route 128, but warned that many other states are trying to copy that model. To succeed now, innovators need to look more broadly and include more people from other parts of the state. 'It would be a shame if we recreated Route 128, which is literally a moat,' he said. Excluding some people from new economic opportunities 'eventually catches up with you ... as we are finding out the hard way.' Advertisement Like other speakers at both conferences, Kumar never mentioned President Trump by name, only alluding to the damage done by the new administration's For the combination of 'blue' and 'green' tech startups, which Kumar dubbed the 'teal economy,' he recommended looking to pockets of strength in other areas beyond Greater Boston. New Bedford has a thriving fishing port, he noted. Advertisement Andrew Hargens, chief development officer at Massport, made the point that the region needs to better educate the startup community about strengths and opportunities right in their backyard. A local startup making robots for processing seafood needed to partner with a distributor and ended up connecting with one in far away Alaska, he said. 'We have 200 companies within 600 yards,' he said at the Tufts event. 'They just didn't know.' Though the state's famed academic institutions will continue to feed the talent base for tech startups, the high cost of living and doing business in Massachusetts remains an impediment to building big companies here, Jay Ash, chief executive of the Massachusetts Competitive Partnership, said at the Engine event. Advocates of Massachusetts 'can't just show up anymore with Harvard and MIT behind you and [tell founders] you ought to be here,' Ash said. He praised recent state legislative efforts to speed up permitting for commercial development. 'We're starting to be more aggressive,' he said. Joe Rodden, cofounder and chief executive of sustainable aviation fuel startup Lydian Labs, said the company built its pilot plant in North Carolina due to the lengthy permitting process and high cost of electricity in Massachusetts. That meant engineers had to waste time flying back and forth from Lydian's Cambridge headquarters. 'We will add 40 to 50 jobs in Massachusetts, but want to create thousands in the future,' Rodden said. Despite the challenges, the state's successes have generated powerful resources to keep the innovation sector growing. Both recent meetings took place within modern, airy facilities funded with the fruits of prior tech booms. Advertisement The 'This place in many ways is an optimism battery where you can come to get recharged,' Ben Downing, chief growth officer at The Engine, said. 'If you invent something in Massachusetts, you ought to be able to make it in Massachusetts.' Aaron Pressman can be reached at
