The Chamber is working with Legislative leaders toward enactment of a tax package that promotes rather than hinders employers’ ability to stay and grow in Massachusetts.

This morning, an op-ed written by Chamber president & CEO Paul Guzzi and Massachusetts Business Roundtable executive director Alan Macdonald appeared in the Boston Herald.  The piece called attention to the ongoing corporate tax discussion, and highlighted three key provisions that must be included in any final package (Click here to view the op-ed). These provisions include:

1. Clear, predictable rules for business taxpayers that limit Department of Revenue (DOR) discretion in administering tax policy changes – to minimize DOR judgment calls and ensure that a company's interaction with the state is consistent from year to year;

2. A cut in our corporate tax rate to make it competitive – Massachusetts’s current rate of 9.5% is 4th highest in the nation; and

3. A "water's edge" election in the adoption of a combined reporting system – a provision unanimously endorsed by the Study Commission’s Subcommittee on Combined Reporting and utilized by 18 of the 20 states that have combined reporting systems.

The House of Representatives recently passed a corporate tax bill which coupled a corporate rate cut with several clearly defined policy changes. The issue is now being taken up by the Senate, where the Chamber will continue to work collaboratively toward the passage of a balanced tax package that improves job growth.

The Chamber continues to work with other business groups and government officials to ensure that the state's health care reform law is implemented as it was intended.  Various aspects of Chapter 58 are currently being reviewed, including finance mechanisms and minimum creditable coverage standards for the individual mandate. 

The Chamber joined several business organizations earlier this week in signing a letter urging House members to support a budget amendment (Amendment 472) that removes prescription drug coverage from the Minimum Creditable Coverage standard for plans under the new health care law. Currently, thousands of citizens have plans without drug coverage, but, under the law, they will be required to purchase new, more costly plans next year that contain this coverage or face penalties. Amendment 472 will ensure that these individuals, along with employers, have options in choosing their plans, while helping to avoid paying more for health care.

As these discussions continue, the Chamber will continue to advocate on behalf of members, and ensure that employers are not unfairly burdened.

The second phase of health care reform is also underway, as the House is now working on their version of legislation dealing with cost.  Earlier this month, the Senate passed health care cost-containment legislation that had been proposed by Senate President Therese Murray at the beginning of the year.  The Chamber supports several provisions of the bill, including statewide adoption of computerized physician order entry systems, statewide adoption and compatibility of electronic medical records, and loan forgiveness and workforce housing assistance programs for nurses and primary care physicians. These proposals have the potential to reduce medical errors, drive down overall health care costs, meet the needs of the high-growth health care industry, and attract and retain talented medical professionals.

However, the legislation also includes a “gift ban” provision that would inhibit product marketing and information-sharing by the life sciences industry. The Chamber believes that Massachusetts should promote, rather than inhibit, the ability of life science companies to educate and inform health care providers, and effectively and ethically market their products. The Chamber continues to voice serious concerns to legislative leaders about the impacts – both intended and unintended – that this provision would have on the state’s world-renowned life sciences cluster and its ability to realize its full potential in the state.