We have long heard about the financial plights of solidly blue states. Places like New York and California have the highest taxes and the highest costs of living in the country. But there is a new blue state story where Democrats refuse to back off their ideological insistence that high taxes will get their state to the fiscal promised land. That place is Massachusetts.
Massachusetts is on the verge of a financial implosion. The reason: Massachusetts Democrats' grand plan to replace the state's taxpayers with migrants is not the grand plan they expected it would be, and the state is in for a perfect storm.
New report reveals Massachusetts has lost $14.8 billion in income since 2020 as millionaires, young workers, and retirees all fleehttps://t.co/B6vn7FLHlv
— Mass Daily News (@MassDailyNews) March 21, 2026
During the Biden-era open border policy era, the state's population increased from 2023 to 2024, but when Donald Trump took office and closed the border, that population surge stopped and fell by more than half. The population problem is two-fold: the decrease in immigration and residents leaving the Bay State for greener, less taxed states. Massachusetts now stands at number 47 in population gain, and a loss of 30,474 residents.
You might think that Massachusetts' elected officials would start connecting the dots. But that is not what is happening. In fact, just the opposite, Massachusetts has imposed a millionaire tax, which is, of course, further contributing to the mass exodus of residents fleeing the state. Over the last year, Massachusetts has lost a whopping $4 billion in taxable revenue. And as you might expect, roughly 70 percent of that comes from the state's wealthiest residents.
A recent study from the Pioneer Institute showed that in 2023, the first full year after the state imposed a four percent wealth tax, Massachusetts lost nearly double that amount of adjusted gross income (AGI) than any year before 2020. The study went on to say,
“Massachusetts’ net loss of AGI to other states grew from roughly $900 million in 2012 to $4.18 billion in 2023, representing a 467 percent increase over the past decade."
OUCH Massachusetts lost $4.18B in adjusted gross income in 2023, the first full year of the "millionaire's tax" new data show. Chart by @PioneerBoston issued with warning "persistence and scale of these losses signal structural competitiveness challenges" for MA #mapoli pic.twitter.com/uySM5gqYrL
— JohnFGately (@johnfgately) March 19, 2026
The Pioneer Institute's Jim Stergios had this to say about Massachusetts' predicament:
“Massachusetts’ losses are concerning because they are big, broad and persistent year after year. We are losing key working-age and pre-retirement cohorts—even as federal policy changes have shut off immigrant labor. That combination poses real risks for the state’s labor force, tax base, and long-term economic vitality. The question is: Are elected officials getting the message?”
The AGI loss is being felt in business, home sales, and even in education. But as stated above, what is Massachusetts politicians' answer to this mess? Not only are they not making any cuts in government spending, but they are convinced that taxing residents will vault the state into financial success.
Blue state politicians are not learning anytime soon that if you tax them, they will leave.
This is Healey's Massachusetts. According to a report from the Pioneer Institute, the Bay State has lost a net total of $14.8 billion since 2020. Taxpayers are fleeing the state in record numbers due to high taxes & Democrat misrule. The GOP must defeat Healey in Nov. #mapoli
— Jeff Kuhner (@TheKuhnerReport) March 24, 2026
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