By Brooke Thomson
President & CEO

That’s a wrap for 2024. The holidays bring to a close a surprising, often unpredictable and persistently chaotic year at the intersection of government and business:

• It was the year when a recession was inevitable – until it wasn’t.
• It was the year when moderating inflation was supposed to make everyone feel better about the economy – until it didn’t.
• It was the year the AI revolution was supposed to come back to earth – until it didn’t.

In the end, 2024 turned out to be a mostly good year on the public-policy front for the 3,400 member companies of AIM. Massachusetts made significant progress implementing an approach to economic development that melds competitiveness for the business community with affordability for the residents who work in our companies and live in our communities.

It is an approach that Governor Maura Healey articulated to an audience of 540 business leaders at the AIM Executive Forum in January – and one that I supported on behalf of employers during my annual State of Massachusetts Business Address.

State lawmakers passed significant measures supported by AIM this year to boost the state economy, ranging from a reduction of the tax on short-term capital gains, reform of the estate tax and a multi-billion-dollar economic development measure to a bill to stimulate new housing and an energy measure that will expedite siting of new power generation.

Here is a summary of the good things that happened for the business community in 2024:

• Reduction of the short-term capital gains tax rate from 12% to 8.5%. This significant tax cut should save Massachusetts taxpayers millions each year and encourage investment in startup businesses.
• Raising the Estate Tax floor from $1 million to $2 million and exemption of all estates below $2 million from the tax. The reform was estimated to save taxpayers $128 million this fiscal year.
• A $5.16 billion housing bond bill enacted by the Legislature and signed by the governor strikes a delicate balance by making investments that will help reduce the prohibitive cost of housing in the state without imposing anti-competitive taxes.
• Frances Perkins Workplace Equity Act – AIM led negotiations with wage-equity advocates on a compromise bill that puts Massachusetts in the forefront of paying workers fairly without punitive measures against employers.
• Economic Development – The $4.96 billion Mass Leads Act provides funding and tax credits for life sciences, climate tech and other industries.
• The climate bill, passed in November, will accelerate clean-energy development, improve energy affordability, create an equitable infrastructure siting process, allow for multistate clean-energy procurements, expand access to electric vehicles and create jobs and support workers throughout the energy transition. I am pleased to serve on the Office of Energy Transformation Advisory Board to ensure that the transition to clean energy always considers the cost of those changes to our members.

Statewide ballot questions produced an eclectic menus of policy outcomes. Voters eliminated the MCAS graduation requirement, authorized the state auditor to audit the legislature and allowed ride-share drivers to form labor unions but turned back initiatives that would have increased the minimum wage for tipped workers and legalized psychedelics.

All this took place against the backdrop of a state economy that provided good news for some employers and sobering results for others. The Massachusetts economy grew at a solid 2.9 percent annual rate in the third quarter and unemployment ended the year better than the national average at 3.9 percent. At the same time, the manufacturing sector lost 3,000 jobs during 2024 while the information sector dropped 3,800 jobs.

There were, as always, policy issues left in the “to do” pile.

Both branches of the Legislature passed health-care bills that aimed to reform hospital oversight (in particular to prevent a repeat of the Steward Health crisis), create prescription-drug oversight and reporting requirements, and create increased transparency in the health-care system. At year’s end, however, lawmakers were unable to agree on a bill.

Transportation also lived up to its reputation as a challenging long-term issue.

I served on Governor Healey’s Transportation Funding Task Force looking at funding strategies to ensure that our roads, bridges and overall transportation infrastructure can support the growing demands of our economy. There are no easy solutions to a transportation crisis that involves financing, affordability and regional equity. But you should know that I support looking at existing sources of money before any solution that involves increasing taxes or fees.

These and other issues will be on the table when the Legislature begins its next two-year session in January. You can be sure that AIM will be there to represent the interests of hard-working employers from every corner of the commonwealth.

We also anticipate that AIM will spend much of 2025 helping companies with their workforce needs. AIM HR Solutions is focused on helping companies through leave management, pay transparency and workforce training.

AIM Is your association. We appreciate the opportunity to work on your behalf and appreciate the tremendous support you provide to this unique common enterprise.

Best wishes for a peaceful holiday season and a Happy New Year!