Matthew L. Brown
Reporter- Boston Business Journal
Email
| Twitter
The Greater Boston Chamber of Commerce has embarked on a campaign to change the state’s tax code, arguing that a few modifications would encourage local, expanding companies to collectively add thousands of jobs here instead of other states.
The chamber issued a report today called “Making The Massachusetts Corporate Tax Code More Competitive.” In it, the business group argues Massachusetts risks losing jobs to competing states because it corporate tax rate is so high.
Citing federal statistics, the chamber says corporate tax payments in Massachusetts were fifth highest in the country for 2011. The state trailed only Alaska, New Hampshire, West Virginia and California.
In the past, high taxes were simply part of the price of doing business in a state that offered excellent quality of life, good schools and a highly educated labor pool.
Since the recession, though, companies have paid far closer attention to the cost of doing business, and are much less afraid of trying new things to ameliorate those costs, said Jim Klocke, the chamber’s executive vice president.
“Many (corporations) have pushed the reset button,” Klocke said. “They’re willing to consider new ideas and strategies. They’re not as wedded to the old ideas they had before the Great Recession.”
What has the chamber worried is where Massachusetts-based corporations decide to hire.
“For the companies in Massachusetts that are growing, where will the next 100 jobs be?” Klocke said.
Klocke said firms in that position may consider as many as 10 other states. He said the states that offer the stiffest competition and have lower corporate tax burdens include Connecticut, North Carolina, Iowa, Georgia and Colorado.
Open all references in tabs: [1 – 4]