MTA supports effort to close tax loopholes
MTA applauded a vote June 12 by the newly appointed tax code commission recommending that the "check the box" corporate tax policy be implemented immediately, as sought by Governor Deval Patrick. The tax code commission was appointed on April 30 by Patrick, Senate President Therese Murray and House Speaker Salvatore DiMasi to examine and make recommendations on a variety of changes to the tax code.
"Big businesses benefit from our greatest natural resource in Massachusetts, which is an educated work force," said MTA President Anne Wass. "These corporations must share responsibility for investing in our students – the future work force -- for the health of our economy."
The "check the box" provision would end a practice under which certain corporations may file as one kind of company on state tax returns and another kind on federal returns, thereby reducing their tax liability. If the proposed new law were to go into effect, as the commission recommends, corporations would have to check a box indicating which classification they are filing under at both the state and federal levels. Forty-five other states already have this provision.
This reform is projected to generate $169 million in new revenues for the state in fiscal year 2009, when it would be in effect for the full year, and $99 million in the coming fiscal year.