Getting Massachusetts Back in Business is my plan to create new jobs in Massachusetts by reducing business taxes, streamlining the regulatory structure of state government, and lowering the cost of doing business in Massachusetts. Businesses need a business climate that is more predictable, competitive, and stable to provide employers the confidence to hire people in Massachusetts and expand here, instead of in our lower-cost competitor states.

Unless we shake up the status quo, Massachusetts faces another jobless recovery like the past decade. Unemployment in Massachusetts is the highest rate in 34 years, with roughly 320,000 people out of work. I will push policies that will get people back to work quickly by lessening the tax and regulatory burden on employers.

We should not be satisfied with double-digit unemployment rates in many areas of this state or a 9, 8 or even 7 percent statewide rate. We should not be satisfied with a state budget deficit that never goes away. We should not be satisfied with tax rates that go up, and change all the time. And we most especially should not be satisfied with a state government that seems either unwilling or unable to get its act together and fix its fiscal mess. If we want to be on the front end of that national recovery – if we want to drive that unemployment rate down as fast as we can – we have to reform the three anchors that impede our capacity for growth – tax policy, business costs and regulatory policy.

We can drive this recovery and become the great state we all know Massachusetts can be again, but we can’t sit back and wait for it to happen. Getting Massachusetts Back in Business is my plan to make this happen.

Establish a simple and equitable tax system to send a strong message to the business community that Massachusetts is a business-friendly state
Adopt a statutory tax rate of 5 percent for all business entities. Massachusetts has a complicated system that sets forth a series of tax rates depending on the type of business entity, the industry the company represents and the size of the company. An across the board uniform state rate for all business classifications is the simplest form of taxation.


Phase out ancillary taxes. This includes the $456 minimum tax on S and C corporations, the sting tax on S corporations, and the tangible property tax on C corporations.
To accomplish the above, the state must phase down the corporate tax rate and ancillary taxes over four years.

Year one - 8%; Year two - 7%; Year three - 6%; Year four – 5%

Reduce the filing fees. Annual filing fees range from $125 for C and S corporations to $500 for LLCs and LLPs. There should be one equitable and reasonable fee of $125 for business entities.


Make Massachusetts’ tax policies competitive with other states so that jobs are created here.
Reduce the state’s sales tax to 5 percent. Right now, Massachusetts is competing with states like New Hampshire with no sales tax and 40 other states in the country with a sales tax rate of less than 6.25 percent.


Reduce the state’s income tax rate to 5 percent. Many of the state’s small businesses, such as sole proprietorships, S corporations, limited liability companies and limited liability partnerships, pay the state’s income tax. There are 600,000 small businesses in the Bay State – a reduction in the income tax rate could be the difference in helping them afford to a new employee.


Enact a true water’s edge provision in the combined reporting law. Massachusetts has set up a taxation system that tries to apportion business profits made from world-wide operations which are already taxed in the country where the businesses are located. Massachusetts risks foreign investment, key to its recovery, by its failure to act to enact true water’s edge provision.


Reform the unemployment insurance program. Unemployment Insurance is one of many areas in which Massachusetts employers struggle with some of the highest costs in the nation. The state must reform the UI program, without cutting benefits, by:

Charging employers with a stable workforce history lower UI rates while charging employers who frequently layoff staff higher rates.


Requiring workers to work longer, and to earn their compensation over two quarters in order to be eligible to collect.


Charging new employers a UI rate that reflects their actual rate rather than a rate that is artificially low – this results in significant increases in UI rates once the new employer rate period is over (12 months).


Computing payroll tax for UI purposes on a three to five year average payroll rather than a 12 month average. MA is one of only 3 states to use the 12 month average; all other states have a longer look back period.


Provide businesses with a predictable set of rules on how to conduct business in Massachusetts
Immediate moratorium on regulations. On day one, impose an immediate moratorium on all new regulations and amendments and launch a full competitive regulatory reform initiative to be completed within one year.


Eliminate anti-competitive policies. Perform a top-to-bottom review and rescind or modify regulations that place undue burden on Massachusetts citizens and stifle competition in the business community.


Make it Business Friendly. Establish a licensing and regulatory review board with representatives of the business community, trade/professional organizations, and other key regulated parties. No regulation, license, permit, or certification will be created or amended without this board’s review.


Stop the madness. Veto any bill that is overly burdensome, anti-competitive, or excessively restrictive for businesses.


Adopt a reasonable and effective statewide energy policy
Support Hydro Quebec as a renewable energy source. Hydro Quebec has significant potential to provide Massachusetts with clean, renewable power that will expand the state’s energy portfolio while reducing the cost of electricity for ratepayers. The state should support the efforts to bring this power to Massachusetts and qualify it as a renewable energy source.


Focus on energy efficiency. The state should continue to invest in energy efficiency. Given that only a limited amount of electricity can be generated within Massachusetts, the state should focus more heavily on energy efficiency as a way to lower energy costs.

Waive sales tax on energy efficiency appliances and upgrades. This will encourage homeowners and businesses to purchase energy efficient appliances and technologies such as appliances, windows, insulation, over the next five years.


LED lighting rebate program. LED lighting is extremely energy efficient but is still cost prohibitive to many homeowners and businesses. LED lights use up to 75% less energy than the average light bulb. The state should offer a rebate program for businesses and homeowners to encourage the transition from traditional lighting to LED lighting.


Regional Economic Development
There are many regions of this state that are struggling well-beyond the Boston metropolitan area. Most notable are the former industrial cities that anchor these regions which have been struggling with double digit unemployment figures for the past year and a half. The current approach to economic development in the state is leaving these cities and the surrounding regions behind. The state needs a bold, innovative and coordinated approach that allows for the development of regional strategies to help these cities rebound.

Provide a single point of contact. There should be a single point of contact at the state for municipal government to make sure that state assistance is targeted and that timely, meaningful and measurable results are achieved.


Provide industrial cities with block grant funding. Create a block grant program that would foster a partnership between cities and state government. Cities should have a seat at the table and work collaboratively to develop strategies that fit the needs of their region. The strategy should include criteria established by the region and state with attainable goals towards economic development. Providing one source of funds and one point of contact at the local level will offer these cities the flexibility it needs to develop plans that meet the specific needs of their area, while making oversight and assistance from the state efficient and accountable. As a foundation, improvements should target the public schools and public safety. The block grants will allow cities and towns to target their funds to these areas to take innovative community-driven approaches to solving specific problems.


Invest state funds in community banks. The state should work with community banks to establish partnerships to help entrepreneurs in former industrial cities access start up and expansion funds. If the state aggressively invested state funds in community banks in these locations, the banks will in turn lend to qualified entrepreneurs to help revitalize downtown areas.