Thursday, March 31, 2011

Advocating for Competitive Tax Policy

Chamber co-authors Boston Globe op-ed on importance of favorable tax climate

The Chamber continues working to improve Massachusetts’ climate for hiring and investment. This includes lowering business costs, strengthening the state’s talent pipeline, and reforming key tax and regulatory policies. These factors drive key business decisions every day, and improvements in each of these areas will boost the region’s competitiveness and accelerate economic recovery.

One such factor that has been the subject of debate recently among some lawmakers is corporate taxation. Recent news events have led some on Beacon Hill to question the effectiveness of a range of long-standing tax policies and incentives. While such a conversation about state economic policy is important, the Chamber believes it is a mistake to focus the discussion so narrowly. Every month thousands of Massachusetts companies make decisions about adding, locating, or reducing jobs. The question is how to make more of those decisions go in Massachusetts’ favor. One of the best ways to do that is to maintain a favorable tax climate in the face of increasing regional and global competition. This includes streamlining tax administration procedures, preserving targeted tax incentives that promote investment and R&D activities, and maintaining tax policies such as single sales factor apportionment that level the playing field for multistate and multinational companies.

The Chamber and Massachusetts Taxpayers Foundation made the case for promoting Massachusetts’ leading industries via competitive tax policy in a March 29th op-ed in the Boston Globe. The op-ed, titled “To keep jobs, don’t kill tax incentives,” outlined the importance of financial services to the Massachusetts economy, and the need to maintain a competitive tax climate – with a particular focus on singles sales factor apportionment for mutual fund companies – in order to sustain and grow this vital industry cluster.

The Chamber will continue working with the House, Senate, and Patrick Administration in an effort to sustain and grow jobs and investment through competitive tax policy.

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