Taxpayers are fleeing Massachusetts at a high rate and it cost the state roughly $3.9 billion in 2022, placing it fifth in the country for loss of “adjusted gross income” due to domestic migration, according to IRS data.
The Internal Revenue Service data, released last week, shows that Massachusetts ranked behind just California ($23.8 billion), New York ($14.2 billion), Illinois ($9.8 billion), and New Jersey ($5.3 billion) in 2022 for loss of income.
A report from the Wall Street Journal points out that the five states with the highest loss of income due to migration are controlled by the Democratic party, and asserts that the exodus from Blue states has continued after the pandemic as taxpayers seek lower taxes and a lower cost of living in Republican-controlled states.
The IRS data reflects that posited trend, in that it shows the five states with the highest gains in income due to migration in 2022 were Florida ($36 billion), Texas ($10.1 billion), South Carolina ($4.8 billion), Tennessee ($4.7 billion), and North Carolina ($4.6 billion).
The latest numbers come a few months after a report outlining out-migration over the past two decades raised alarm bells for the future of Massachusetts’ economy, which is feeling the effects of a different kind of migration crisis — as migrants fleeing their home counties are taxing the state’s overflowing shelter system.
A report released in April by Boston Indicators said that tens of thousands more people were moving out of Massachusetts than are moving into the state. It further stated that domestic out-migration has recently outpaced international in-migration, leading to a shrinking population in 2021 and 2022, “for the first time in years.”
It speculated that many people, particularly younger folks like recent college graduates or those looking to start a family, are leaving for cheaper housing.
The MassGOP seized on the report at the time, pointing the finger at the “burden Democrats impose with their regulations on development and high taxes across the board,” which it said involves taxing “life necessities, innovation and success.”
“That’s why people are leaving,” MassGOP Chair Amy Carnevale said at the time. “Beacon Hill needs to look at cutting these exorbitant taxes and regulations. Then, you will start to see Massachusetts become more affordable and a more attractive place to live.”