Business Groups Pan Healey ‘Tax Cuts’ as Insufficient, Citing Anemic Job Growth and High Unemployment
Business Groups Pan Healey ‘Tax Cuts’ as Insufficient, Citing Anemic Job Growth and High Unemployment
8.28.25
BOSTON, MA — The Massachusetts Republican Party is drawing attention to concerns by business leaders that Governor Maura Healey’s 2023 “tax cut package” is doing little to stimulate economic activity in the Commonwealth.
Healey has repeatedly touted the package over the past year while ignoring rising unemployment rates, anemic job growth, and a hostile business climate.
The Pioneer Institute has suggested six tax reforms to improve Massachusetts’ chilly reputation for starting a business, which ranks 46th among all states, according to the Tax Foundation. A press release featured concerns by industry representatives who say Healey isn’t taking the Commonwealth’s faltering economy seriously.
“The tax reform package adopted in 2023 did too little to move the needle for smaller businesses,” said state director of the National Federation of Independent Businesses Chris Carlozzi. “The proposals presented in this paper – like raising the sting tax threshold, repealing the minimum corporate tax, and exempting rolling stock from the sales tax – would make a difference for our members.”
“Now more than ever, small businesses are operating in a hyper-competitive environment,” said Steve Clark of the Massachusetts Restaurant Association. “Every policy decision impacts profitability and growth potential. We need tax policy that encourages growth and signals to the rest of the country that Massachusetts is open for business.”
Massachusetts’ unemployment rate has remained stuck at 4.8%, higher than the national average of 4.2% and the highest level since September 2021. Job growth has stagnated over the past year, with virtually no jobs added.
Meanwhile, outmigration has put Massachusetts near the top of rankings for “most moved from” states in 2024.
“Earlier this year, Republicans on Beacon Hill helped secure another state budget with no new taxes. House and Senate Republicans are now eager to pursue tax relief in the next legislative session. We urge the Administration to work with us, recognizing that small businesses are the backbone of our economy in Massachusetts,” said State Rep. Donald Wong (R-Saugus), member of the Joint Committee on Labor and Workforce Development and lifelong small business owner.
“Businesses are crying out for help even as Governor Healey proposes more spending on anything except new tax cuts. Republicans intend to retake the corner office in 2026, reversing the dismal decline in business confidence that has been a hallmark of Healey’s time in office,” said MassGOP Chair Amy Carnevale.
BACKGROUND:
On Wednesday the Pioneer Institute released a paper suggesting new tax reforms for Massachusetts and highlighted concerns by business leaders about the lack of help Gov. Healey’s 2023 “tax cut package” has delivered. (Pioneer Institute, 8/27/25)
Bureau of Labor Statistics figures show that Massachusetts’ unemployment rate has remained above the national average for most of the past year. (Mass.gov)
Job growth in Massachusetts over the past year has remained essentially flat. (WBUR, 6/23/25)
A survey released earlier this year showed Massachusetts is among the top 5 “most moved from” states. (CBS Boston, 1/6/25)
Business confidence fell in July, the fifth consecutive month of pessimism among Massachusetts employers. (Boston Herald, 8/4/25)
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