Bay State companies needing to recruit workers from out of state must overcome the high cost
of living here, and might have to pay a high premium to attract qualified employees, according
to a report released today by Suffolk University's Beacon Hill Institute.
According to David Tuerck, the executive director of the institute, an out-of-state worker
would need to earn $106,590 in Massachusetts to equal a $75,000 salary elsewhere, on
average.
Of 50 cities examined, only New York and San Francisco were more expensive, the report
stated.
He said Massachusetts has the country's third-highest cost of living, which is directly related to
having the second-highest tax burden.
"The state's high cost of living is a disincentive to economic growth and the recruitment of
employees," agreed Secretary of Administration and Finance Steve Crosby.
Crosby seconded Tuerck's assertion that the report highlights the need to cut taxes in the state,
an issue that will be on the ballot in November. Question 4 proposes rolling back the state
income tax from 5.85 percent to 5 percent. Tuerck said the tax cut would help companies
attract almost 80,000 workers to the state.
Opponents of the ballot question disagreed.
"It's unbelievable to think you can attract 80,000 workers to Massachusetts by cutting their
taxes 40 or 50 cents a day," said James St. George, of the Campaign for Massachusetts'
Future, which opposes the tax cut.
"People come here because it's a great place to live, we have good schools, a high quality of
life," he said.
St. George said the tax cut would threaten the quality of schools and health care in the state,
making workers less likely to move here.