Friday, January 29, 2016

MassBudget: Info on Proposed Corporate Tax Break Expansion

MassBudget  Information.
 Massachusetts Budget and Policy Center  Democracy.

The Single Sales Factor Tax Break: Has It Worked? 

The Governor's budget proposal will reportedly include the expansion of a corporate tax break called Single Sales Factor apportionment. The Single Sales Factor Tax Break: Has It Worked? describes how this tax break works, the evidence on whether it is effective, and its cost. Massachusetts has been providing this tax break to manufacturing companies, defense contractors, and mutual fund companies since the 1990s. There is no evidence that it has had a positive effect on job creation or the strength of our state economy. Studies of states with Single Sales Factor have found that this costly tax break for manufacturers has not led them to retain more manufacturing jobs. The Governor's proposal to expand this tax break would extend it to all multi-state corporations.

The existing Single Sales Factor tax break costs the state over $200 million a year. The proposed expansion, when fully phased in, is estimated to cost an additional $67 million. While the Governor's budget reportedly proposes paying for part of this cost by reforming the state's film tax credit, ultimately the proposal to spend $67 million to expand this tax credit should be weighed against other potential investments such as making college more affordable, expanding access to early education, improving our schools, or fixing our transportation infrastructure.

For the full factsheet click HERE.
The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts.


BOSTON, MA 02108
Massachusetts Budget and Policy Center, 15 Court Square, Suite 700, Boston, MA 02108

Sent by in collaboration with
Constant Contact
screen grab MassBudget - single sales factor
screen grab MassBudget - single sales factor

No comments:

Post a Comment