Mayor Michelle Wu speaks to reporters during a press conference after her 2025 State of the City speech at MGM Music Hall on March 19, 2025. Photo by James Sanna | Banker & Tradesman Staff
Mayor Michelle Wu defended Boston’s tax policies and rejected budget cuts as an economic development strategy in a speech to business executives today.
“Boston is never going to be one of the places that people come to because it’s cheapest to do business,” Wu said during a question-and-answer session following her annual remarks to the Greater Boston Chamber of Commerce.
Speaking at the chamber’s government affairs forum, Wu pointed to recent high-profile corporate relocations by Hasbro and Lego Group as evidence that her administration’s strategy is effective.
“These recent moves make Boston the toy capital of the world. In all seriousness, these aren’t small moves. They are global companies with lots of options,” Wu said.
Wu didn’t use the high-profile forum to announce any new initiatives, but pointed to a series of ongoing programs designed to attract and retain jobs and maintain quality of life.
During a question-and-answer session with Chamber CEO James Rooney, Wu characterized Boston’s commercial tax rate as “below the middle of the pack” among major U.S. cities. Wu has been at odds with business groups over her attempt to shift a larger percentage of the property tax levy onto commercial properties.
Lamenting the role of Proposition 2 ½ in limiting annual tax increases in Massachusetts, she said the administration is seeking to “get out of the way” of business through streamlining of permitting and zoning issues.
She cited the purchase of new software to stream permitting, including the city Inspectional Services Department, to make municipal functions more efficient in a way that could accelerate economic development.
“Anytime you need a permit or a license to open a business or put a new deck on your house, or host a special event, construction permits of all kinds, it should be simple, easy and online,” Wu said. “You give you information once. You don’t have to give it to every other agency that you’re interacting with. You don’t have to go in person to 1010 [Massachusetts Avenue, the ISD offices].”
The administration is also reforming Article 80, the zoning approval process for most large and mid-sized developments, and is in the midst of a series of neighborhood zoning updates.
Wu alluded to the continuing federal immigration crackdown as a threat to Greater Boston’s research and higher education sectors.
“When I say Boston won’t back down from being a beacon of freedom, I’m talking about standing strong to protect and recruit scientists and engineers and researchers: immigrant innovators and essential workers,” she said.
