Blue Mass Group

Reality-based commentary on politics.

Healey was for retroactive tax hikes before she was against them

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Kerry Healey likes to talk about how she and Mitt Romney bravely faced down the legislature over the possibility of a retroactive capital gains tax increase that resulted from a Supreme Judicial Court decision.

But in 2003, Romney/Healey tried to impose a retroactive tax hike on banks.  The banks were pissed.

The Romney administration in March moved to collect what it considered back taxes on REITs [Real Estate Investment Trusts] going back to 1999, an effort aimed at raising $140 million. Bankers, led by the Massachusetts Bankers Association and Boston law firm Goodwin Procter LLP, cried foul. They contended the banks were following state guidance in setting up the REITs and didn’t owe anything.

Another article describes the banks’ reaction this way:

Bankers were shocked by the administration’s action, saying their institutions were being taxed retroactively, and they threatened to sue.

Healey, no doubt, would claim that this was just a “clarification,” or “closing a loophole.”  Well, call it whatever you want, but the result was that banks had to shell out millions of dollars in taxes going back to 1999 (in most cases, the matter was settled by the banks agreeing to pay half of what Romney/Healey said they owed).  Sounds like a retroactive tax hike to me.

So, um, does the “no new taxes” pledge include stuff like this?  Will Kerry Healey promise never again to retroactively “clarify” the tax code?

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Comments

  2. I’m not disagreeing with your retroactive angle, but come on…

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    nobody likes tax loopholes.  Not many folks like banks.  I suspect that few shed a tear for huge banks having to pay a few more bucks into the state coffers.

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    So, you’re right on principle, but this particular argument won’t win much in negative views towards Muffy.

  3. He was audited by that darn Romney administration and assessed something like two hundred bucks. 

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    Right.  No tax pledge my butt.  They raised his taxes didn’t they, just like they raised the banks’ taxes.

  4. It was the banks who used the term retroactive. But apparently their lawyers & accountants did not agree, and advised them to settle up. Quickly.

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    Doesn’t look like a shakedown to me. Looks like Romney/Healey were just minding the store.

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