News Summary

Following the approval of the Fair Share Amendment, Massachusetts has seen a significant surge in millionaires, with a 38.6% increase in their numbers. This new surtax on million-dollar earnings is contributing substantial funds for education and public services, challenging the belief that higher taxes would drive wealth away. Despite concerns, high-net-worth individuals are remaining in the state and positively impacting community resources.

Massachusetts Millionaires are Flourishing After New Tax Legislation!

Hey there, Massachusetts folks! Have you heard the buzz? Since the introduction of the Fair Share Amendment—you might know it as the “millionaires tax“—the Bay State has seen a whopping number of millionaires flocking in like never before! This tax, which was approved by a cool 51.9% of voters back in November 2022, adds a 4% surtax on income over a million dollars. It aims to snag some serious funds for important things like education and transportation.

Massive Growth in the Millionaire Club

So, what’s the impact been? According to recent reports from the Institute for Policy Studies, from 2022 to 2024, our neat little state has seen a jaw-dropping 38.6% increase in the number of millionaires! That’s right; we jumped from about 440,000 millionaires to over 612,000. And that’s not all—collectively, their wealth skyrocketed from around $1.6 trillion to a staggering $2.2 trillion. That’s a 37.7% increase in just a couple of years!

The Ultra-Rich Are Staying Put

Even more interesting, the number of folks with a net worth over $50 million has climbed from 1,954 in 2022 to 2,642 in 2024—an impressive 35.2% rise. Many believed that the new tax would send high earners running for the hills, especially to states like New Hampshire or Florida, where taxes are lower. But guess what? The report indicates that high-net-worth individuals are actually less mobile and are opting to stick around—likely contributing to state revenues that bail out public services.

Revenue Generated for Good Causes

This new surtax generated about $2.2 billion during the last fiscal year. This is light years ahead of the initial projections of around $1 billion. So where’s all this cash going? Well, it’s boosting childcare slots for low-income families, making universal Pre-K a reality, enhancing financial aid for students, and significantly pumping up investments in public transportation. Talk about making a difference!

The Wealth of the Ultra-Rich

For those ultra-high-net-worth individuals (over $50 million), they combined are sitting on more than $500 billion worth of wealth! Can you imagine the possibilities? If a hypothetical 3% tax increase were to be decided on these ultra-rich folks, it could churn out an additional $11 billion in revenue. This kind of figure can change the face of Massachusetts, all in the name of better public services!

Concerns and Counterpoints

state’s economic competitiveness and scaring top talent away from local businesses. Yet the overwhelming data seems to tell a different story, showing that it’s economic factors, rather than tax policies, that usually drive people to relocate.

A Model for the Nation?

So, what do you think about all this millionaire action? It seems Massachusetts is onto something special—let’s keep our fingers crossed for even more good news in the future!

Deeper Dive: News & Info About This Topic

Author: HERE Boston

Tagged Massachusetts business news, Massachusetts economy, Massachusetts government news, Massachusetts governor updates, Massachusetts investment opportunities, Massachusetts market trends

Massachusetts Millionaires Flourish After Tax Changes