tax credits

Here's a twist on the tax discussion...raise the taxes on those least able to pay (more) and who are currently paying the highest percentage of income in taxes.  This political platform may get a candidate more corporate contributions, but as we know, corporations aren't people and they don't vote.  Think about it...who earns the money that's not being contributed/taxed at the similar percentage of income basis to pay for the programs and services that we all depend and rely upon on a daily basis?

The moral argument would have been obvious before this polarized year. Nearly 90 percent of the families that paid no income tax make less than $40,000, most much less...At a time when high-income households are paying their lowest share of federal taxes in decades, when corporations frequently avoid paying any tax, it is clear who should bear a larger burden and who should not . [Full Editorial: The New York Times]

It is time to reconsider the relevance and  importance of state tax credits. To restore confidence in government we need to push for transparency on the way we conduct and invest tax revenues in sectors and companies such as this one:

Natick-based Boston Scientific's plan to cut up to 1,400 jobs underscores the need for better oversight of the tax breaks that businesses receive, state Sen. Jamie Eldridge said.

The problem is that Massachusetts has created various tax credits, Eldridge said, but the state and communities aren't gathering enough information about how companies are following through. "Even the Department of Revenue doesn't know if they're living up to their promises," he said. [Full Article: Wicked Local - Milford Daily News]

$44 million in tax breaks to businesses...included in this is ~$317 thousand to Bank of New York Mellon Corp, the organization that Treasurer Steve Grossman says overcharged the MA state pension funds $30.5 million since 2000.  Are the different departments communicating within the Administration?

A state economic development board today approved state and local tax breaks for 16 firms that promised to add or retain jobs in Massachusetts. [Full Article: Boston Globe]

When will additional revenues for the Commonwealth enter into the Administration's conversation?

State finances are tight now, but when the economy improves, a tax break to help encourage the video game industry should be considered to help bring more jobs to Massachusetts, Lt. Gov. Tim Murray said Thursday… With the state struggling with a tight budget, it would be "premature" to talk about reducing revenues through tax breaks now, he said, but in the future the administration and Legislature sould consider extending a movie-making tax credit to video games companies… Any future tax credit for the industry would have be linked to job creation with a strong "clawback" provision to reimburse the state if the jobs do not materialize, he said. [Full Article: Sun Chronicle]

In the first day of the FY2012 state budget debate, the House adopted reforms to improve the transparency and accountability of tax subsidies. The adoption is an important step forward in reviewing the value and effectiveness of billions of dollars in state spending through tax breaks, including corporate tax breaks used as economic development. [Full Article: MassPIRG]

Local lawmakers are backing a bill that would require better reporting and accountability from companies receiving job-creating tax breaks from the state. The bill, the subject of a State House hearing yesterday, follows the news that Evergreen Solar and Fidelity Investments, which each received state tax incentives to create jobs in Massachusetts, are moving 1,900 jobs out of state. [Full Article: Ashland Tab]

Legislators push to increase accountability of businesses that receive government subsidies...