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03/11/2026
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The Westin Boston Seaport
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February 1, 2023
Two Massachusetts business groups released a tax reform proposal that is designed to improve the state’s competitiveness – and to counter other states’ aggressive pursuits of the Commonwealth’s employers and talent. With three years of historic revenue growth and a structural budget surplus, the state is well-positioned to adopt tax reforms that demonstrate its commitment to building the region’s economy and increasing jobs for residents.
The joint effort by the Greater Boston Chamber of Commerce and the Massachusetts Society of CPAs focuses on policy changes that will ultimately ensure there are jobs and opportunities for economic growth available to Massachusetts residents, both critical factors to achieve an inclusive economy. The goals of the proposed tax reforms are to:
“This proposal for tax reform is exactly what the Commonwealth – its residents, families, and businesses – need right now. To compete and win today, we need to address and solve for the negative effects and unintended consequences that make it difficult to start and sustain a business in Massachusetts and to work, live, and be successful here,” said James E. Rooney, President & CEO, Greater Boston Chamber of Commerce. “Understanding that tax reform is urgently needed and the issues are incredibly complex, we are proud to partner with MassCPAs and business leaders across the Commonwealth to ensure that Massachusetts remains competitive and is a place where economic opportunity and jobs are in abundance.”
“Advocating for our members and the communities they serve is what we do at MassCPAs,” said MassCPAs President and CEO Amy Pitter. “This has been particularly top of mind since the millionaire’s tax passed. In a December 2022 survey of MassCPAs members, 73% said their conversations with clients about changing their domicile have increased, so the proposals we offer are to stop that migration and boost the Commonwealth’s competitiveness. These tax proposals intend to protect and generate economic activity by reducing the negative effects from certain tax law; correct policies that make Massachusetts an outlier; and address unintended consequences of the new surtax. Our efforts are ongoing, and we are grateful to the Chamber and tax and legal experts for their work to keep Massachusetts a competitive state.”
The specific proposals include reforming the state’s estate tax, reducing capital gains tax rates, eliminating the state’s “sting tax” on S-corps, and eliminating other policies that penalize Massachusetts employers. The slide deck provides more details on the specific proposals, the context for tax reform, and how Massachusetts compares nationally. The proposal was developed by the Greater Boston Chamber of Commerce and the Massachusetts Society of CPAs and with detailed input from tax and legal experts.
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