The deep blue state of Massachusetts is facing financial collapse: politicians raise taxes on remaining citizens as taxpayers flee the state on top of the cratering of the inflow of poor migrants.
The collapse of the Democrats’ plan to replace taxpayers with migrants is causing a perfect storm to the state.
The state has witnessed a falling number of migrants moving in thanks to President Trump’s efforts to close the southern border. According to the Wall Street Journal, Boston, for instance, was experiencing wide growth in population from 2023 to 2024 during Biden’s open-door immigration policies. But from 2024 to 2025, that growth collapsed by more than half.
The Journal added that the “driver” for this population shrinkage, especially in blue states, is a “sharp slowdown in immigration, coupled in many places with losses from people leaving for other parts of the country.”
According to StorageCafe, Massachusetts now ranks 47th in population gain with a net loss of 30,474 citizens, based on data from the U.S. Census Bureau.
But even as the Bay State’s tax base is fleeing and migrants aren’t streaming in to replace them, the state legislature has nonetheless imposed a millionaire tax on residents, and this has caused the outgoing of citizens to skyrocket.
Over the last year, Massachusetts lost an astonishing $4 billion in taxable income, with about 70 percent of that loss coming from the state’s former top earners.
Early in March, the Pioneer Institute published a study showing that Massachusetts lost more than double the amount of adjusted gross income (AGI) in 2023 — the first full year after the state imposed its four percent wealth tax — than in any year prior to 2020.
“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,” the group wrote.
“Massachusetts’ losses are concerning because they are big, broad and persistent year after year,” said Pioneer Institute’s Jim Stergios. “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 loss is being felt all across the state, in the business sector, in home sales, in education, in every sector.
Yet, despite this massive loss of tax revenue in Massachusetts, the state’s Democrats still aren’t looking to make cuts in government. Instead, they think raising taxes is the ticket to success.
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