Read our new report with the Green Justice Coalition on transportation investment and revenue options: “Corporate Fair Share for Transportation.”
After years of underinvestment, Massachusetts’ transportation systems are at a crisis point. Because of the failures of our transportation systems, many working families in Massachusetts are struggling with lengthy commutes, high transportation costs, and a lack of opportunity. In order to build the modern, reliable transportation systems we need all across the Commonwealth, we need significant new revenue for investment in transportation.
At the same time, the benefits of economic growth have increasingly gone only to the very wealthy, and our state tax system is making things worse. Low- and moderate-income households in Massachusetts pay a larger share of their income in taxes than households with higher incomes do. And far too many large, profitable corporations that do business in Massachusetts pay only minimal taxes here by exploiting loopholes, tax breaks, and offshore tax havens.
We need major investments in transportation, but we cannot balance our budgets on the backs of working people! That’s why Raise Up Massachusetts is working to pass the Fair Share Amendment, which would raise $2 billion/year to invest in transportation and public education with a tax on income above $1 million. At the same time, large, profitable corporations move their goods on our publicly-funded roads and bridges and bring their employees to work on our public transportation systems. They have a shared responsibility to help fund continued investments in transportation.
Some organizations, including corporate lobbyists that opposed previous attempts to raise revenue for transportation spending, are calling for the passage of a transportation revenue package that relies exclusively on regressive user taxes and fees, which disproportionately impact low- and middle-income people. These proposals include a 15-cent/gallon increase in the gas tax, higher tolls, and new fees on ride-hailing. Noticeably absent is any contribution from large, profitable businesses.
Rather than only asking working people to pay more, it is time for large, profitable corporations to pay their fair share!
Raise Up Massachusetts does not support a revenue package comprised entirely of regressive taxes and fees. Instead, we support an economically progressive transportation revenue package that balances any regressive user taxes with revenue generated by ensuring that large, profitable corporations are paying their fair share.
- GILTI (Global Intangible Low Taxed Income) – Many multinational corporations who do business in MA dodge taxes by using provisions of the federal tax code to shift their US profits to offshore tax havens. Massachusetts should do the same as other states and federal law, and tax a portion of those offshore profits. Would generate approximately $350-450 million/year.
- Tiered Corporate Minimum – Would ensure that larger corporations pay a minimum corporate tax bill in proportion to the size of their business in MA, while small businesses continue paying the current corporate minimum tax of just $456 per year. A revenue estimate is unclear due to a lack of adequate corporate disclosure, but the current corporate minimum tax generated $55.9 million in 2015.
- Corporate Disclosure – Research and informed policy making to close corporate loopholes is made more difficult because of the lack of available information about how much taxes specific corporations pay. Corporate disclosure laws would help identify corporate bad actors, measure the effects of existing corporate tax loopholes, and generate additional future revenue by closing corporate tax loopholes.
Voters agree! A recent statewide poll of likely voters in Massachusetts, conducted for Raise Up MA, found that voters strongly believe that the wealthy and large corporations aren’t paying their fair share. In the poll, between 69 and 78 percent of voters supported our progressive revenue-raising proposals, while large majorities opposed raising regressive user fees. See the full results here.
TAKE ACTION: Raise your voice! Join our coalition and the #CorporateFairShare movement, call or email your legislators today, and ask them to pass a revenue package that is fair to working people! https://raiseupma.cp.bsd.net/co/corpfairshare