Massachusetts High Technology Council Issues Challenge to Competitiveness Council

BOSTON — As Gov. Maura Healey’s Competitiveness Council convenes for its inaugural meeting, the Massachusetts High Technology Council urges it to focus immediately on reforms that will reduce the cost of creating, operating, and expanding businesses in the Commonwealth. Two newly published reports — one on population shifts away from high-tax states, and the other on corporate relocations from Massachusetts — make clear that the state’s competitiveness is at stake.

According to a Nov. 25 report by the National Taxpayers Union Foundation, Massachusetts is losing residents at one of the fastest rates in the nation: on net, a taxpayer leaves the Commonwealth every 11 minutes and 38 seconds. The report highlights a broader nationwide trend: individuals and businesses increasingly relocate from high-tax, high-cost states toward states with lower burdens — such as Florida, Texas, and North Carolina — where fiscal policy is more business-friendly.

That trend isn’t hypothetical. A Dec. 2 article in the Boston Business Journal reports that several Massachusetts-based companies — including key players in technology and manufacturing — are relocating or already have relocated operations to neighboring states, including New Hampshire, citing lower costs and a more favorable business environment. The exodus of companies underscores how eroding competitiveness is translating directly into lost jobs and lost economic activity in Massachusetts.

These data points, the Massachusetts High Technology Council argues, cannot be ignored, and demonstrate that Massachusetts risks losing both its workforce and its employers — especially in high-growth sectors — unless state policymakers act swiftly to recalibrate the business climate.

The High Technology Council urges the Competitiveness Council to prioritize three key reforms:

• Tax and regulatory relief, including reviewing state and local tax burdens (including employer assessments like UI), streamlining permitting, and eliminating redundant licensing or regulatory hurdles that add to business costs;

• Incentives for business growth and retention, such as incentives or credits for firms that stay and expand operations in Massachusetts, and support for capital investment and innovation; and

• Competitive cost-of-living and infrastructure policies, which include addressing housing, transportation, and energy costs that influence worker and business decisions about where to locate or expand.

“It’s time to stop treating high taxes and overregulation as immutable,” Massachusetts High Technology Council President Christopher Anderson said. “These reports make it unmistakably clear: talent, companies, and capital are mobile — and they’re voting with their feet. If Massachusetts wants to keep and attract the businesses driving innovation, growth, and high-paying jobs, the time to act is now.”

The High Technology Council looks forward to working with the Competitiveness Council, the Healey administration, and the Legislature to implement pro-growth reforms that strengthen Massachusetts’ competitiveness and position the Commonwealth as a magnet for investment, innovation, and opportunity.