This as-told-to essay is based on a conversation with Sam Slater, a 41-year-old real estate developer based in Boston. It’s been edited for length and clarity.
I was born in South Florida, where my parents and uncle currently live, and I moved to Massachusetts when I was 10 years old.
I run our family office, which is based in both Boston and Palm Beach, Florida. We have business ventures across multiple industries, but my focus is on our real estate portfolio. From light industrial to agricultural to multifamily real estate, we’re well-diversified across many states in the US, as well as Canada.
It’s been interesting to see an increase in national interest in the Massachusetts millionaire’s tax as some initiatives in other states come up. I have friends in other markets who have been asking about it. Since its implementation in 2023, the obvious question to me is, why wouldn’t I move back to Florida?
The truth is, I often think about moving, but I feel strongly about why I’m staying. It’s all for my kids.
I’ve witnessed wealthy friends leave Massachusetts after the state tax
In addition to my focus on real estate, I also work in the sports and entertainment industry. I hold a minority ownership stake in the Seattle Kraken, an NHL team, and last year, I joined the ownership group of the Memphis Grizzlies. I’m very active in the world of sport, and it’s been a really enjoyable and successful venture. Over the past 15 years, I’ve also produced over 40 feature films.
With the progression of state taxes in the last few years, particularly the millionaire tax, I’ve seen many people, including friends in the hedge fund, private equity, and finance spaces, move or confirm their plans to do so. However, I’m in a slightly different situation.
I want my kids to grow up in Massachusetts
I have two younger children, a 7 and 10-year-old, and I would prefer them to grow up here with all that Massachusetts has to offer.
We live in a town with a wonderful public school system, and I don’t want to take that away from them. More broadly, eastern Massachusetts and Boston, in particular, are highly accessible areas and offer a lot. We’ve got everything from sports to culture, and all four seasons. I don’t want to pull my kids from that for my desire to pay less in taxes.
If my children weren’t young, maybe my answer would be different.
I’d consider moving if things keep trending in this direction
It’s difficult to say if any changes I’ve seen in Massachusetts are a direct result of this particular tax. The broader market conditions in the economy are, in certain areas, quite strong, while in other areas, they are not.
If you take condominium sales in downtown Boston, we’re at extraordinarily low points both for pricing and velocity, especially if we’re looking back on a 10 or 15-year horizon. I think it would probably be a stretch to say it’s solely because of this tax, but high earners leaving Massachusetts removes potential high-end condominium buyers from the market.
The wealth tax in Massachusetts hasn’t affected my lifestyle
Fortunately, I haven’t had to make any lifestyle changes because of the wealth tax, but I’m certainly aware of the taxes I pay in general, specifically as a result of this tax. My question is, what will come next after this?
What remains to be seen is how the additional revenue brought in to Massachusetts from this tax will trickle back to everyone in the Commonwealth.
If taxes continue to increase and no one can point to any substantial changes being made in the state, I think that’s when we’ll see a more meaningful exodus of people, even potentially myself, from Massachusetts.
My hope is that the government will make smart choices as to where the additional revenue goes
The Massachusetts Bay Transportation Authority, our public transit system, has struggled for a long time, and it needs huge investments in its infrastructure and operations. Will we see a boost there? I don’t know.
There are two bridges that connect mainland Massachusetts to Cape Cod, and they’re nearly 100 years old. They were going to be replaced at a multi-billion-dollar cost, but some of the funding was cut due to the Trump Administration. Will we see some help for those projects?
I’m wondering if there’s anything that will be done to truly help move us forward, rather than just keep us afloat with the existing programs we have at the state budget level. I think more people who are paying the millionaire’s tax would be on board if there were a more complete message about how the tax dollars would be used.
It’s certainly something that people are watching and aware of, with good reason.
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