As a member of the Executive Committee of PDM, I want to extend an invitation to BMGers to join us in soliciting expressions of support from Massachusetts businesses for the Governor’s proposals. These Massachusetts-based businesses do not benefit from the unintended consequences of certain quirks in our tax code (popularly called “loopholes”). According to some estimates, 85% to 95% of businesses in the state do not receive any benefit from these unintended biases toward large corporations, and are thus put at a great competitive disadvantage. If you work for such a local business, or know someone who does, use the links here for information on the Governor’s proposals, and (more importantly) a place to go to register support.
We are also looking for business people to testify in support of the Governor’s program at a hearing before the new Tax Commission, which will take place at the State House next Tuesday (May 22) at 4 PM. If you or someone you know would like to participate, you can email me or leave a comment here.
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PDM Social at the MassDems Convention in Amherst: Be There or Be Square!
If you plan to be at the MassDems Convention in Amherst on Saturday (May 19), stop by at our booth and join up as a PDM member. We will have information on PDM and on the new ONE Massachusetts network supported by PDM as well as many like-minded groups in the state.
In addition, we are continuing our long-standing tradition of hosting our ever-popular social gathering at the conclusion of the afternoon session (4 to 6 o’clock). Come to the Marriott Room on the 11th floor of the Campus Center. We will provide snacks, a cash bar, and lots of energetic conversation. Meet and greet, see and be seen, and all that.
Any desire/plans for a BMGy event?
who’ll be there. I’m giving a talk on blogging in the afternoon, with Libby DeVecchi. 2:20-3:35, and maybe a second section immediately thereafter, 3:45-5pm. Don’t know about that second one yet.
Seating will be by Senate District, of course. I am in 4th Middlsex [Senator Havern’s District]. I will also have Edwards material.
I was just looking over the convention schedule for the afternoon sessions and highlighted yours to attend. It clearly states, “Workshop repeated at 3:45.” Just thought I’d let you know!
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Nancy
Any BMGers wanna get lunch or anything?
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WF
1pm?
Anyone got a lunch recommendation in Amherst?
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WF
From a MassDems email:
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Schedule for Saturday:
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8:00 AM- Registration opens at Mullins Center (through front entrance, center doors)
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8:30 AM- Delegates are invited to the Massachusetts AFL-CIO and the D.S.C. Labor Outreach Committee’s continental breakfast, Mullins Center, Hall of Fame Room.
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10:00 AM- Convention Called to Order
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12:00 PM- Convention Adjourns, delegates, alternates and guests should proceed to the Lincoln Campus Center for lunch break. Shuttles are provided in front of the Mullins Center to transport participants to the Lincoln Campus Center.
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1:00 PM-5:00 PM- Workshops at the Lincoln Campus Center and UMASS Student Center, Click here to view workshop schedule.
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5:00 PM-7:00 PM- Post-Convention Reception at the Student Center Ballroom, sponsored by the Convention Host Committee. Special Guests Governor Deval Patrick and Senator John Kerry.
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AND, of course, 4 to 6 PM, the PDM Social.
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You believe that claim? It seems impossible. An example might convince me.
Toys R Us comes to mind. I believe Verizon is another. But these are just off the top of my head, so don’t quote me yet. I’ll see if I can get a definitive list for you.
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Of course, technically all of these companies pay SOME income tax, since there is a minimum of $456 (who came up with that number?), and it would be interesting to know how many multi-state companies pay exactly that. Are you aware of any who pay more?
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You might also ponder that Massachusetts ranks 47th in the nation in collecting corporate income taxes. We just don’t do a very good (or fair) job. See this MBPC report for details.
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I’m personally aware of plenty who pay more in Mass excise tax.
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Further, stats from DOR (most recent = 2003) are that of the 146,000 corp returns filed, the average excise is $4,949. So, at least we know that on average, the corps pay more than $456.
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But you stated the multi-states pay -0-. Then restated to say they pay $456. Toys R Us was made famous because of a NY case where it was discovered that Toys R Us was paying a license fee to use the name, and that the license fee was paid to an affiliate not located in NY. I don’t know how that affected the Mass Corporate excise. If you do, a source would be great.
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Matter of fact, I’m still very interested in a single example of a multi-state paying $456, or some very small amount. The structure of the tax (a combination of tax on income or property in the state), makes what you’ve suggested very, very difficult.
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Also, I’m glad to see other professionals beginning to comment on ‘combined reporting’:
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I’ve dug up some names for you, but wanted to share them more widely, so created a separate post. Thanks for the question.
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In future, if you’re going to quote numbers and words from various sources, it would be helpful to have actual citiations. Otherwise, I have to assume you’ve just made these things up.
I will be there, and hope to see you at the booth and/or the schmoozfest. I wasn’t aware of PDM, but it sounds right up my alley.
I plotted the full data set of telephone pole revenues compared with equalized property values, and it looks like there is a range of about 8000 to 1 in terms of the value the telephone pole tax would bring to municipalities, reltative to their existing property base. Caveat; I may have made an error in plotting, but I think I got the numerators and denominators in the right place and the town columns lined up.
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The average among the 63 towns with highest aggregate property valuations is about 6 times the average among the 63 lowest. There’s probably a similar difference in what a meals tax could bring, as well.
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This doesn’t mean these taxes can’t help some locales, but their benefits would not be spread equally among towns. Something to consider, when comparing the value of pulling hard for these options compared with some other, larger and more uniform way to relieve prop taxes.
Unless I missed something here, your comment has nothing to do with my post, which was about making corporate income taxes more fair.
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The subjects you raise, about local property taxes and local option taxes are worthy of discussion, of course, but I’m not quite sure why you brought them up here.
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I do object, however, to your phrase “relieve prop taxes” — the whole concept of “tax relief” is a bogus one. Taxes are not inherently evil, any more than are the services we use them to pay for.
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Tax equity, or fairness, is a different issue, and that is what I meant to get at — there are large corporations doing business in this state that do not pay their fair share. Yet, they (and their employees) receive all the same services and benefits that our wonderful state has to offer.
You’re correct, I didn’t read your post in detail, and I’m off-topic.
I think you’re trying to get at the a point that says we shouldn’t pursue either meals taxes or closing the telephone pole loophole because some locales (probably cities) will benefit more than others (small towns).
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I’ll listen to that argument when small towns start building homeless shelters, drug rehab clinics, and low-income housing.