In the past five years almost a quarter of a million people have
fled Massachusetts for greener pastures. This week the candidates
for governor offered their solutions for staunching the flow and,
if possible, luring some ex-pats back. What does Democrat Chris
Gabrieli propose? Why, invest $1 billion of taxpayer money in
embryonic stem cell research, of course.
I didn’t make that up. Gabrieli actually thinks that would keep
Massachusetts residents from hauling their families to the South
and Midwest, where the cost of living is lower and the weather and
people are considerably more agreeable. He thinks the “investment”
would create high-tech jobs, and evidently he thinks the people
leaving Massachusetts are all highly qualified medical
researchers.
Gabrieli had by far the dumbest proposal, but he wasn’t the only
one whose plan to keep residents in the state would end up
increasing the exodus.
Democrat Deval Patrick wants to hike the minimum wage by $2 an
hour and build high-speed commuter rail between Boston and
satellite communities Worcester and New Bedford. Yes, Bay Staters
are fleeing to Tennessee and Texas because Massachusetts doesn’t
have enough high-speed rail or business regulations.
Those who left Massachusetts told the Boston Globe in a
survey last week that a better job and lower cost of living were
the top two reasons they left. Massachusetts has a good high-tech
job sector in and around Boston, but in general it is quite not so
hot at creating new jobs. The Tax Foundation ranks Massachusetts
27th in business tax climate. Neighboring New Hampshire ranks
sixth. Oh, and New Hampshire has experienced massive population and
job growth — the best in New England — this decade. The New
England Economic Partnership predicted this month that New
Hampshire will lead New England in economic growth through 2010,
with Massachusetts, Rhode Island and Maine at the bottom.
Hmmm… how might New Hampshire differ from Massachusetts?
Massachusetts is much larger and is home to a major American
seaport, multiple world-class universities, and a major
transportation hub. New Hampshire is small, rural and relatively
isolated. Hmmmm….
Oh, yeah, Massachusetts’ per capita tax burden is nearly $4,000
higher than New Hampshire’s.
New Hampshire’s population is booming along its southern border,
which it shares with Massachusetts. That is where the Massachusetts
expats have settled. Conventional wisdom in New Hampshire is that
those Bay Staters have brought their liberal politics with them. It
isn’t true. Those communities consistently vote Republican — and
conservative Republican. The most ardent anti-taxers you’ll find in
New Hampshire are the Massachusetts expats who live along the
southern border.
Massachusetts Lt. Gov. Kerry Healey gets it. To keep her
residents from leaving, she proposed cutting state income tax rate
to 5 percent, cutting the unemployment insurance rate, and offering
tax-free savings accounts for first-time home-buyers. If she wins,
New Hampshire had better watch out.
If she doesn’t win, well, she can always move to New
Hampshire.
