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Survey finds accountants predict wealthy residents fleeing Massachusetts.

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TLDR:

  • Accountants in Massachusetts believe wealthy residents are considering leaving the state due to the new income surtax.
  • The survey revealed that high-income clients are relocating to states like New Hampshire, Florida, and Texas to avoid the surtax.

Key Elements of the Article:

Accountants in Massachusetts are expressing concern over high-income residents leaving the state to avoid the new income surtax. The Massachusetts Society of Certified Public Accountants conducted a survey that revealed two-thirds of respondents reported at least one high-income client had relocated out of Massachusetts in the past year. Additionally, 90% of accounting professionals indicated that high-income clients are considering leaving the state, with 64% citing the 4% surtax on household income above $1 million as a factor in relocation decisions.

The top states to which Massachusetts residents are moving or considering moving include New Hampshire, Florida, and Texas. The report highlighted that tax burdens imposed by Massachusetts play a significant role in the decision to relocate, contrary to claims that individuals are moving solely for better weather. The new income surtax has generated significant revenue for the state, with collections surpassing $1.84 billion within the first nine months of the fiscal year.

While the surtax has led to increased revenue for the state and funding for public education and transportation, concerns remain about the long-term impact on high-income residents. Despite the revenue surge, the CPA group is advocating for Massachusetts to pass measures that would enhance competitiveness, such as decoupling from federal business interest expense limits and adjusting estate tax exemptions.

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