Who would have thought that Massachusetts’ millionaires tax could have an effect on the New England Patriots’ roster?
Pats’ players weren’t top of mind when the Fair Share Amendment passed in November of 2022. “Millionaires” were an abstract — faceless high-earners who lit cigars with rolled-up Benjamins. But former Patriots’ coach Bill Belichick put an unexpected face on some of them, and the consequences of the tax is starting to hit home.
As the Herald reported, Belichick said top free agents aren’t coming to New England because of Massachusetts’ “millionaires tax.”
“It’s Taxachusetts,” Belichick told co-hosts and former NFL players Pat McAfee and AJ Hawk on ESPN’s “The Pat McAfee Show.” “Virtually every player, even the practice squad, well the minimum players are pretty close to $1 million so once you hit that $1 million threshold then you pay more state tax in Massachusetts. It’s just another thing you have to contend with in negotiations up there.”
The voter-approved “millionaires tax” delivered roughly $2.2 billion last fiscal year, helping to fund transportation and education projects.
It also spurred interest in moving truck rentals.
In its 2024 public policy and competitiveness report issued earlier this summer, the Massachusetts Society of Certified Public Accountants said two-thirds of accounting professionals surveyed reported that at least one high-income client relocated out of Massachusetts in the last year, according to State House News.
Ninety percent of accounting professionals indicated high-income clients are considering leaving Massachusetts, the report said, and 64% of respondents indicated the 4% surtax on household income above $1 million per year is a factor in relocation decisions.
Wealthy people are mobile – they can choose to leave Massachusetts, and they can choose to stay away. And when they leave, they take tax revenue with them.
However, as Belichick points out, it’s not just the bottom line that’s affected.
Pats’ defensive tackle Davon Godchaux echoed Belichick’s sentiments: “I mean guys these days, if you can sign with a team with no state tax, then go ahead and sign with them because that’s more money you keep in your pocket.”
That’s not a good rep to have in the professional sports world. Considering Red Sox and Celtics players also have $1M+ earners, that puts Boston’s sports franchises in unenviable positions. You want the best players, you pay top dollar. But if a player earns top dollar, the state will take as much as it can.
Some may think the paychecks of professional athletes are ridiculous concerns, but if you consider the revenue raised by the Patriots, Celtics and Red Sox, it’s wise not to hobble the ability to keep these franchises at peak performance.
That’s the problem with cash grabs – the numbers look good on paper, but behind the dollars and cents are people who would rather not get soaked if they can help it.
When they make the decision to move out of Massachusetts, or not move here in the first place, the state will have to find other ways of coming up with the money.
Then we’re all in trouble.
