• February 12 2018

On State Tax Policy and Migration

If the surtax passes, Massachusetts would have one of the highest tax rates in the nation on income over $1 million. And that may understate the upcoming shockwave to high-earners. Since SALT deductions are now capped at $10,000, the effective state income tax rate for individuals making more than $1 million would soar to 9 percent from 3 percent – a remarkable 300 percent escalation. Given the state’s persistent out-migration issues absent a massive tax hike, the state is rapidly entering uncharted territory with no ability to mitigate the damage for years.