THE MAN WIDELY VIEWED as the heir apparent as speaker has a message for the state’s business community, which has complained about the economic climate since voters passed a millionaire tax two years ago: Get over it.
Historically, the House has come across as more business-friendly than the Senate. Rep. Aaron Michlewitz, the House Ways and Means chairman who is also the heir apparent to House Speaker Ron Mariano, told members of the business community on Wednesday that he wants to continue to collaborate. But the whining has to stop, he said.
Several business groups recently formed the Massachusetts Opportunity Alliance, a nonprofit that has taken aim at the millionaire tax, also known as the Fair Share Amendment, a voter-approved constitutional amendment that sets aside money for state spending on education and transportation. The alliance has pointed to Massachusetts falling this year to 38th place, from 15th place in 2023, on CNBC’s annual ranking of top states to do business in.
But Michlewitz said he just returned from a Toronto trip which was put together by the Greater Boston Chamber of Commerce. “One message I heard multiple times was how many places want to be Boston, and how many places want to be Massachusetts,” Michlewitz said. “But judging from the attitude in our community lately, you wouldn’t necessarily know that.”
Michlewitz, a Celtics fan, then quoted a “much-maligned” former coach, Rick Pitino. “‘The attitude in this town stinks.’ Except he didn’t use the word stinks,” Michlewitz said. “He used a different word. The negativity I hear on a daily basis is enough to make you think we’re bordering on the Great Depression, or that we’re almost wishing it into existence.”
He was quick to add that he wasn’t slamming the door shut on the people in the room. “Those who have worked with us in the House know that our door is always open,” he said, calling himself a proponent of “constant dialogue between legislators and business leaders.”
Speaking with reporters afterwards, Michlewitz said he was referencing the complaints he has heard since the millionaire tax’s passage. “I feel that we need to get over that and start working together to create solutions that will help us move forward,” he said.
He indicated that the business community’s input will be key as Beacon Hill leaders decide how to fund transportation accounts, and specifically the ailing MBTA, in the budget cycles to come.
The millionaire tax pulled in roughly $1.2 billion more than House and Senate leaders budgeted, for fiscal 2024. Most of the money from the tax, which is a 4 percent surtax on income over $1 million, has gone toward education accounts, like universal school meals, free community college, and early child care programs. “As worthy as those are, and we love all those, these funds were designed to be split evenly between education and transportation needs.” he said.
Michlewitz said he would like to see most of the surplus go toward transportation improvements, he said, while acknowledging that is a conversation for early in the next legislative session, which gets underway in January.
A Democrat who represents Boston’s North End, he also pointed to a fight between members of the city’s business community and Mayor Michelle Wu, a close friend. Wu encountered resistance over a proposal to shift more of the city’s property tax burden over to commercial properties as a way to avert a spike in residents’ tax bills. (Just after he spoke with reporters, Wu announced a deal with compromises made by both sides.)
“Originally, all they were just saying was ‘no,’” Michlewitz said. “And that wasn’t necessarily conducive to getting an agreement done.”
After his speech, Michlewitz picked up the phone and called Jim Rooney, the head of the Greater Boston Chamber of Commerce, to let him know about the remarks, and reporters’ interest in them.
“I think sometimes we have cornered the market on negativity,” Rooney acknowledged, while adding he wasn’t offended by the remarks. “But I spin that around in some ways, it keeps us going forward. I think about that as a willingness to be open and honest about the challenges we face, and be willing to roll up our sleeves.”
Rooney and Michlewitz have known each other since the business leader was Mayor Tom Menino’s chief of staff and Michlewitz worked as a Menino aide.
“I appreciated the call,” Rooney said. “We’ll just keep getting shit done.”
This post has been updated.
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