Even if there is not a focused effort from the Patrick administration – which would be disappointing – activists and supporters can take matters into their own hands. One example of this is the packet of information that Michael Forbes Wilcox disseminated about a week ago. This packet included sample letters to the Governor, to legislators, and to business leaders. If you have not already contacted your member of the House on this matter, please take the opportunity some time in the next week to do so. The letters in Michael’s packet might be useful in this regard.
The Governor’s proposal would close seven loopholes that would bring in from $250 million to $300 million. The loopholes that would be closed include –
– corporations shifting income to out-of-state subsidiaries to avoid Massachusetts tax,
– businesses claiming to be corporations for federal but not Massachusetts tax purposes,
– insurance companies paying taxes only on premium income and not on non-insurance revenues,
– companies avoiding deeds excise by not selling property directly, but rather placing the property with a subsidiary that will be sold,
– internet retail agents avoiding room occupancy taxes on lodging sold through the Internet,
– businesses avoiding sales tax on equipment by leasing from a subsidiary rather than purchasing directly, and
– non-residents taking advantage of the state earned income credit.
Governor Patrick’s proposals are fiscally responsible and they make the Massachusetts tax code fairer. The Governor also needs a victory of this magnitude if he is to be truly effective over the next two – and possibly four – years. The rubber is about to hit the road.