Massachusetts loses billions in income after millionaire tax

Massachusetts’ 4 percent surtax on income above $1 million was designed to generate revenue from top earners. In its first full year, it also coincided with $4.2 billion in adjusted gross income leaving the state. In this presentation, attorney and CPA Chad D. Cummings examines what the IRS migration data actually shows: fewer taxpayers departing, but a disproportionate share of high-income individuals relocating and taking a growing percentage of the tax base with them. The discussion explains why targeted millionaire taxes create a structural risk by concentrating revenue on a small, highly mobile group of taxpayers, and how other states such as Texas and Florida position themselves to receive that capital. It also analyzes the difference between reported tax collections and total economic impact, including the income, investment activity, and downstream spending that leave when business owners transfer their companies out of Massachusetts. Finally, the presentation addresses why policymakers often focus on short-term revenue gains while underestimating long-term erosion of the tax base, and why individuals in affected income brackets must evaluate residency and entity structure decisions before tax exposure becomes fixed. Learn more: https://www.cummings.law/redomestication/