Community, Faith, & Labor Coalition Calls for Taxing Corporate Profits to Fund Economic Recovery Measures
BOSTON – The Raise Up Massachusetts coalition of community groups, faith-based organizations, and labor unions today issued the following statement regarding Governor Baker’s FY2022 budget.
“Like the current state budget, Governor Baker’s proposal uses one-time federal aid and a significant portion of the rainy day fund to avoid making extreme budget cuts. But Massachusetts faces one of the steepest declines in employment of any state, record levels of hunger and housing insecurity, and years of deferred investments in our transportation systems and our public schools and colleges; we are in a crisis that demands a stronger governmental response.
“We need new revenue to invest in the public services needed to recover from the effects of the COVID-19 pandemic, like emergency paid sick time, food assistance, and eviction prevention. Even before the pandemic, we needed new investments in our public education, child care, and transportation systems, and now those investments are needed more than ever to lift our economy into an equitable recovery.
“While countless people and small businesses suffer during this crisis, many large corporations are making record profits. It’s time that they pay their fair share to support our economic recovery. By increasing the tax rate on corporate profits and taxing corporate profits shifted overseas by increasing the tax rate on GILTI (Global Intangible Low Taxed Income), Massachusetts can raise significant new revenue this year for investments in our recovery, entirely from profitable corporations.”
Background on Fair Share Taxes
For years, multi-millionaires and large corporations have used low rates, tax breaks, and loopholes to avoid paying their fair share of taxes. The highest-income households in Massachusetts – those in the top 1 percent – pay a smaller share of their income in state and local taxes than any other income group. And just in the last four years, large corporations have received federal tax cuts worth billions of dollars a year in Massachusetts alone.
While countless people and small businesses suffer during this crisis, many large corporations are making record profits, and multi-millionaire investors have seen their net worth skyrocket. 17 out of America’s top 25 corporations – including Apple, Comcast, Facebook, Johnson & Johnson, Microsoft, Pfizer, Oracle, Verizon and Visa – are making extraordinary profits during the pandemic, according to an Oxfam analysis. The 19 billionaires in MA saw their wealth increase by a total of $17 billion during the first three months of the pandemic. It’s time that multimillionaires and profitable corporations pay their fair share to support our economic recovery.
In order to meet the long-term revenue needs of the Commonwealth in an equitable way, the Raise Up Massachusetts coalition has led the campaign for the Fair Share Amendment, which would amend the Massachusetts Constitution to create an additional tax of four percentage points on the portion of a person’s annual income above $1 million, with the new revenue dedicated to investments in transportation and public education. The Amendment needs to receive another 50% vote of the constitutional convention during the 2021/2022 legislative session in order to be placed on the November 2022 ballot. In order to raise significant new revenue this year for investments in our recovery from the COVID-19 pandemic, the Raise Up Massachusetts coalition supports increasing the tax rate on corporate profits and taxing corporate profits shifted overseas by increasing the tax rate on GILTI (Global Intangible Low Taxed Income). Recent polling by MassIC found that 72 percent of Massachusetts voters support the Fair Share Amendment, and that 68 percent support raising the tax rate on corporate profits.
Raise Up Massachusetts is a coalition of community groups, faith-based organizations, and labor unions committed to building an economy that invests in families, gives everyone the opportunity to succeed, and creates broadly shared prosperity. Since our coalition came together in 2013, we have nearly doubled wages for hundreds of thousands of working people by winning two increases in the state’s minimum wage, won best-in-the-nation earned sick time and paid family and medical leave benefits for workers and their families, led the campaign for the Fair Share Amendment to invest in transportation and public education, and started to build an economy that works for all of us, not just those at the top. Learn more at raiseupma.org.