BY THE OPTIMIST DAILY EDITORIAL TEAM
When Massachusetts voters approved the Fair Share Amendment in 2022—a four percent surtax on income over $1 million—critics warned it would send high earners fleeing the state. But two years later, a new report tells a very different story.
According to findings from the Institute for Policy Studies (IPS), not only have millionaires stayed, but their numbers have grown. Between 2022 and 2024, the number of Massachusetts residents with a net worth of $1 million or more increased by nearly 39 percent—from about 440,000 to over 612,000. The collective wealth of these individuals surged from $1.6 trillion to $2.2 trillion, a 37.7 percent increase.
“Massachusetts has become a model for states interested in progressive taxation,” said Omar Ocampo, who authored the report. The data, sourced from WealthX and IRS filings, paints a picture of a robust millionaire class that has not only weathered the tax shift, but thrived under it.
From campaign fear to financial reality
The Fair Share Amendment passed narrowly, with 51.9 percent of voters in favor. The surtax revenue, earmarked for education and transportation, was expected to bring in around $1 billion annually. Instead, it generated $2.2 billion in its first fiscal year alone—more than double the estimate.
These funds are already making a visible impact. The state has expanded child-care slots for low-income families, invested in universal Pre-K, increased financial aid for public higher education, and poured resources into public transit via the MBTA and MassDOT rail projects.
“This is further evidence that multi-millionaires are not fleeing the state in response to the new tax,” said Shanique Rodriguez, Executive Director of the Massachusetts Voter Table and member of the Raise Up Massachusetts steering committee. “They are staying here, paying more in taxes, and enjoying the stronger transportation and public education systems that Fair Share dollars are funding.”
Why the rich don’t run
One of the most persistent myths in debates about wealth taxes is that high-net-worth individuals will uproot and relocate at the first sign of a new tax. But IPS notes that wealthy individuals “tend to be less mobile and exhibit lower rates of migration compared to the general public.”
As the report explains, affluent people often have strong ties to their communities—family, business connections, social networks, and access to cultural amenities. These deep roots make the idea of mass millionaire flight more fiction than fact.
Equity and opportunity in motion
The Fair Share surtax applied to just 0.8 percent of all Massachusetts tax filers in 2022—around 27,270 people. Yet the impact of their contributions has been broad and tangible.
IPS also highlighted the presence of 2,642 ultra high-net-worth individuals in the state, each with more than $50 million in assets, totaling over $500 billion in collective wealth. The report suggests that a modest additional three percent tax on this group could raise $11 billion in revenue.
But the current focus of advocacy groups like Raise Up isn’t an additional wealth tax. Instead, they’re pursuing a “corporate fair share” policy that targets mega-corporations exploiting offshore tax loopholes to avoid paying state corporate tax rates.
More than money: a shift in mindset
What stands out in this story isn’t just the impressive tax revenue or the booming millionaire numbers—it’s the social contract taking shape. As the IPS report notes, when designed thoughtfully, progressive taxation can be a powerful tool: “It has the potential to not only improve economic and racial equity in the tax code, but also to raise significant revenue that can help balance budgets, spur productive public investment, grow existing social programs, and create new economic initiatives that empower the working class.”
Massachusetts’s experience echoes similar findings in Washington state, where a new tax on capital gains over $250,000 coincided with a 47 percent rise in millionaire households.
As debates around tax equity continue to unfold nationally, the Massachusetts model offers a warm and pragmatic reminder: when the wealthiest contribute fairly, communities can thrive. Roads get smoother. Kids get more support. Families breathe a little easier. And the sky doesn’t fall. In fact, it might just rise.
