Massachusetts Small Businesses Struggle with Beacon Hill's Affordability Disconnect

State's 'Affordability Agenda' fails to deliver real relief, as lawmakers pursue new taxes and fees

Published on Feb. 28, 2026

Got story updates? Submit your updates here. ›

In a scathing op-ed, Christopher Carlozzi, the Massachusetts State Director of the National Federation of Independent Business (NFIB), criticizes the disconnect between Beacon Hill's rhetoric on affordability and the reality of its policy decisions. Carlozzi argues that despite the governor's 'Affordability Agenda,' the state continues to impose new taxes and fees on small businesses, hampering their ability to survive and thrive.

Why it matters

Small businesses in Massachusetts are facing a slew of new taxes and fees proposed by state lawmakers, even as the governor touts an 'Affordability Agenda.' This disconnect between rhetoric and policy is putting significant strain on the state's small business community, which is still recovering from the pandemic and grappling with high costs, labor shortages, and other economic challenges.

The details

Carlozzi highlights several concerning policy proposals, including allowing municipalities to raise meals and lodging taxes, create a new tax on vehicles, and impose a local sales tax on top of the state's existing sales tax. These measures would further burden small businesses, especially restaurants, hotels, and service providers that rely on vehicles to operate. Additionally, the state's broken Unemployment Insurance (UI) Trust Fund has led to small businesses having to pay back $2.7 billion in COVID-related assessments, compounded by a $2.1 billion accounting error.

  • In 2025, 33,000 more people moved out of Massachusetts than arrived.
  • On January 29, 2026, Cape Cod Potato Chips announced it will no longer be made in Massachusetts, with production moving to other states.

The players

Maura Healey

The Governor of Massachusetts, who has touted an 'Affordability Agenda' but whose policies have failed to provide real relief for small businesses.

Christopher Carlozzi

The Massachusetts State Director of the National Federation of Independent Business (NFIB), the nation's leading small business association.

Michelle Wu

The Mayor of Boston, who some policymakers have attempted to 'empower' to allow the city to shift more of the tax burden onto commercial properties.

Got photos? Submit your photos here. ›

What they’re saying

“Yes, 'The Municipal Empowerment Act' is back. Following last year's State of the Commonwealth address, Gov. Healey told reporters she had no plans to raise taxes due to slowing revenue collections. The following day she announced to municipal leaders that she was filing a bill to allow cities and towns to not only raise meals and lodging taxes but also create a new tax on vehicles.”

— Christopher Carlozzi, Massachusetts State Director, National Federation of Independent Business (bostonherald.com)

“Enabling the local meals tax to be increased by a third would be stinging for restaurant owners and customers. Similarly, state tourism was also battered, and allowing further hikes in the local option hotel and lodging taxes to 7%, and to 7.5% in Boston, is plainly absurd.”

— Christopher Carlozzi, Massachusetts State Director, National Federation of Independent Business (bostonherald.com)

What’s next

Lawmakers must be educated yet again on the dangers of local tax hikes, as small businesses, restaurants, and the lodging industry work to forestall these misguided and unbalanced proposals.

The takeaway

This case highlights the growing disconnect between Beacon Hill's rhetoric on affordability and the reality of its policy decisions, which continue to burden small businesses with new taxes and fees. Small business owners in Massachusetts are increasingly seeking relief through the ballot box, as lawmakers refuse to enact the honest, smart policy changes needed to support the state's economic competitiveness.