You know the drill: stop, drop, and spread.
"Business tax deal may cost $535m; State lowers its revenue forecast; Deduction helped win tighter rules" by Matt Viser, Globe Staff | October 13, 2009
A corporate tax deduction, created last year as a sweetener for businesses in a tax-tightening measure, will cost the state at least $535 million over seven years, according to a new estimate by the Massachusetts Department of Revenue.
That projected loss of state revenue - and estimates that more than half of the $535 million would benefit just three corporations - comes at a time when state dollars are already stretched thin, prompting calls to rethink the wisdom of the deduction....
Well, WHY DID THEY GET IT in the FIRST PLACE, then?
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Yeah, states are broke, right.
Isn't BUSINESS TAKING ENOUGH of our TAX LOOT?!!!!!
Said state Representative Jay R. Kaufman, a Lexington Democrat and House chairman of the Committee on Revenue: “We did this before the bottom fell out of the economy. If we were to debate this now, anything that would cost us [this much] would have absolutely gotten our attention more than it did at the time.’’
BULL-SHIT, ASSHOLE!!!!!!!
Yeah, so when times are good, corporations are LOOTING THE F*** OUT OF YOU, BAY-STATER!!!!!!
Lawmakers tightened the tax laws last year to bring in fresh revenue from businesses, but in the process allowed corporations to take the new deduction, which allows some to temporarily sidestep certain tax liabilities.
Yup, CLOSE a LOOPHOLE and OPEN ANOTHER ONE!
So WHICH COMPANIES and WHICH POLITICIANS are the LOOTERS, Glob?
The tax changes, to be implemented over the next several years, will still bring in additional revenues. But the benefit will be significantly lower than originally projected, and the hit will come at a time when the Bay State will be trying to recover from budget cycles that have gutted state services and caused pain for cities and towns.
That's because GOVERNMENT does NOT WORK FOR YOU, citizen -- which is why THERE SHOULD BE NO TAXES!!!
This CRAP has LITERALLY DRIVEN ME to THAT EXTREME!!!
I want NO GOVERNMENT!
NEED POLICE? ARM YOURSELF!!!
Other services?
PRIVATIZE THEM so YOU CAN DECIDE HOW TO SPEND YOUR MONEY!!!
Oh, you would rather some LOOTING POLITICIAN who is going to FEATHER HIS NEST DECIDE WHERE it will go?
Haven't you HAD ENOUGH of LYING, LOOTING POLITICIANS who ONLY SERVE THEMSELVES and their CAMPAIGN CONTRIBUTORS?!!!!
Corporations plan to take deductions that would cost the state $76.4 million annually - or $535 million over seven years - beginning in the 2012 tax year, according to a Sept. 23 letter that revenue officials sent to legislative leaders. The letter, citing taxpayer confidentiality restrictions, did not identify the corporations that would gain the most from the deduction, although they are likely to be among the largest in the state.
Oh, so BIG BUSINESS got a $75 MILLION TAX BREAK while SERVICES are getting SLASHED, huh?
The Massachusetts Budget and Policy Center, which analyzes the state budget and tax policies, is suggesting that state officials investigate whether the law should be altered.
Yeah, GOOD LUCK (as this story fades into oblivion).
“At a time when the state faces severe budget problems, having to pay $75 million a year for a particular new deduction for what appears to be a handful of corporations may not be the best use of our state’s resources,’’ said Noah Berger, the group’s executive director.
Neither are ANY of the OTHER CORPORATE WELFARE and LEGISLATIVE LOOTING I linked above!
“The lesson here is that it’s important when dealing with tax policies to study all of the costs and benefits,’’ he added.
That's an INSULT!
Related: The Perils of One-Party Politics: Massachusetts' Democracy
You see who is WRITING the LEGISLATION and SENDING IT OVER, right?
Pending legislation would make further changes to corporate tax laws, making it easier to revisit the deduction issue. The state is also lowering its overall estimates of how much the tax changes will bring in new revenue.
Again?
See: Blood All Over Massachusetts State Budget
Yeah, it is ALWAYS COMING IN LOW because THEY ARE ALWAYS OVERLY OPTIMISTIC -- like a good liar always is!
Revenue officials initially estimated that the tightening of corporate tax laws would result in additional tax revenue of $263.5 million for the tax year 2012, once changes that include lowering the corporate tax rate take full effect. But because of the economic downturn, the state has now reduced that estimate to $210.8 million, according to the letter.
Since taking office in 2007, Governor Deval Patrick had been moving to close so-called tax loopholes that he said were allowing certain companies to unfairly benefit and causing the state to lose money. He was initially rebuffed by House lawmakers, who said tax increases would damage the business community. But ultimately, House and Senate lawmakers approved the change, while also lowering the state’s corporate tax rate.
Did YOU GET an INCOME TAX REDUCTION when they RAISED THE SALES TAX, Bay-Stater?
Most of the changes involved implementing what is called combined reporting, which is designed to prevent large multistate corporations from shifting certain profits to other states that have lower tax rates. The new law requires all companies in Massachusetts to combine all income and apportion the Massachusetts share.
Seriously, America, there are TOO MANY TAXES if you have STATE against STATE!!!
But in making that change, lawmakers included the provision that allows corporations to temporarily sidestep certain tax liabilities. The amendment had the backing of the business community - Associated Industries of Massachusetts, the largest state business organization, strongly advocated for the changes - and was pushed by state Representative Daniel E. Bosley, a North Adams Democrat.
Why am I NOT SURPRISED?!!!
See: The Big Boss Bosley
Yeah, THANKS for GIVING OUR TAX LOOT AWAY, scum!!!!
Administration officials fought the amendment at the time, pointing out in a letter to legislative leaders that it “would likely negate significant amounts of income that would otherwise be taxed.’’ Lawmakers say the provision was included to give corporations time to readjust their projected profits while the state began assessing taxes they had not previously been required to pay.
Once the legislation was approved with the provision included, the administration was afraid that vetoing it or amending it would have caused the entire bill, which was deeply controversial, to collapse, administration officials say.
I don't remember much controversy at all. What I remember is all the pols and the paper crowing bout how great they did.
“The corporate tax reform package offered by the governor was intended to promote tax fairness and equity,’’ Cyndi Roy, an administration spokeswoman, said in a statement. “This provision was a partial step backwards from that goal, but even with this provision, the bill was a substantial improvement to the fairness of the Commonwealth’s corporate tax code.’’
The law required companies to file a statement before July 1, 2009, specifying the total amount of the deductions they intended to claim.... All told, 128 corporations filed complete forms, indicating they intend to claim deductions of $178.1 billion, resulting in estimated tax losses to the state of $535 million, with planned deductions by just three corporations accounting for $281 million. There are five additional corporations whose forms the state is still reviewing. That review could result in up to $20 million in additional losses.
“At the time, the argument was this was a reasonable and necessary accommodation for the business community to keep business growing in Massachusetts even while we’re closing corporate tax loopholes,’’ Kaufman said. “There was and there is much debate over whether that was a good public policy.’’
Translation: YOU GOT HOSED, Bay-State taxpayers!!!
