Blue Mass Group

Reality-based commentary on politics.

Close Corporate Tax Loopholes to Boost Growth says MBPC

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The Center examined whether states that have adopted “combined reporting” as a method of closing corporate tax loopholes have experienced weaker economic growth than those states that have not. “The examination finds no such evidence as: five of six states with the fastest growth in GDP from 1992 to 2005 had combined reporting; three of the five states with the fastest employment growth from 1992 to 2005 had combined reporting; and, nine of ten states with the fastest manufacturing growth from 1992 to 2005 had combined reporting,” MPBC said.

“There is also debate among the business community regarding corporate tax loopholes. Laurence Hammel, President of The Longfellow Clubs, the MetroWest-based group of heath and tennis clubs, added, ‘When corporate tax breaks and other incentives, like allowing corporate tax avoidance, are bestowed upon a few large corporations, countless small and medium-sized businesses and business owners across the Commonwealth suffer by having to pay a disproportionate share of corporate taxes. Allowing these corporate tax loopholes to go unchecked is not an effective economic growth strategy, and it is unfair to the small business community,’ the report added.

The Massachusetts Budget and Policy Center (MBPC) provides independent research and analysis of state budget and tax policies, as well as economic issues, that affect low- and moderate-income people in Massachusetts.

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Comments

    • The state should fund infrastructure, including education and basic research, which are kinds of intellectual infrastructure. It shouldn’t help specific companies bring their products to market.

  2. Despite my general agreement that the Government shouldn’t pick businesses, I still think the ‘loophole’ strategy by the Governor was and is a big loser.

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    Had he come out in favor of Corporate reform; given deference to the fact that there are widespread inequities in favor of certain business sectors, and promised reform with rate reduction, he’d have invited a more honest and profitable debate on real issues.

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