And that may be the real lesson from Massachusetts. The millionaire’s tax did not end the argument about taxing the rich. It clarified it. The question is no longer whether government can raise money from million-dollar income. Massachusetts has shown that it can. The question is whether the tax system can follow wealth when wealth stops looking like income.
Bibliography
1. Massachusetts Taxpayers Foundation, “FY 2026 Consensus Tax Revenue Agreement,” Jan. 10, 2025.
2. Pioneer Institute, “Tax Flight Takes Off: IRS Data Reveal Surge of Massachusetts Residents Fleeing to Tax-Friendly States Following the 4 Percent Surtax,” Mar. 19, 2026.
3. MassBudget, “New IRS Migration Data Shows No Evidence of Surtax-Driven Outmigration, Highlights Affordability Challenges,” Mar. 19, 2026.
4. Internal Revenue Service, Statistics of Income Migration Data, filing years through 2023.
5. Cristobal Young et al., research on millionaire migration and state taxation.