February 13, 2008

Cape Cod Times: Letter to the Editor on Corporate Taxes

by Tonya Barr

Corporate tax rate must be further cut

To the editor:

While we commend the Massachusetts Study Commission on Corporate Taxation and Governor Patrick for taking a step in the right direction with the recommendation to lower corporate tax rates, the currently proposed cut from 9.5 percent to 8.3 percent does not go far enough.

As House Minority Leader Bradley Jones has pointed out, the plan is a net tax increase on companies that wish to do business in Massachusetts, because the rate is not lowered enough to make up for the loopholes it closes.

Massachusetts already has the fourth highest corporate tax rate of the 50 states. When combined with the federal rate, the Bay State ranks higher than Japan, Germany, China and France. The state simply must do better if it hopes to attract and keep investment and jobs in the state.

Tonya Barr, Manager of State Relations

Tax Foundation

Washington, D.C.