{"id":41525,"date":"2025-10-03T17:53:48","date_gmt":"2025-10-03T17:53:48","guid":{"rendered":"https:\/\/bostonchamber.com\/?post_type=policy-insights&#038;p=41525"},"modified":"2025-11-04T19:09:07","modified_gmt":"2025-11-04T19:09:07","slug":"business-coalition-submits-letter-opposing-tax-increase","status":"publish","type":"policy-insights","link":"https:\/\/bostonchamber.com\/policy-insights\/business-coalition-submits-letter-opposing-tax-increase\/","title":{"rendered":"Coalition of Business Leaders Submits Letter Opposing Tax Increase"},"content":{"rendered":"<style> .banner:before {\r\n        background: linear-gradient(0deg,rgba(0,0,0,0.5),rgba(0,0,0,0.5)) !important;\r\n    }<\/style><div id=\"ra_id_1709927494\" class=\"banner dark-hero-theme standard\" style=\"background-image: url()\">\r\n        <div class=\"container  banner-container text-Center\">\r\n            <div class=\"row center-items\">\r\n                                \r\n                <div class=\"col-lg-7\"  >\r\n                                            <!-- <p class=\"label special-label\" tabindex=\"0\"><\/p> -->\r\n                    \r\n                    <h1 class=\"underline-text white  required\" tabindex=\"0\">\r\n                        Coalition of Business Leaders Submits Letter Opposing Tax Increase                    <\/h1>\r\n                                            <div class=\"xyz\" tabindex=\"0\"><p><\/p><\/div>\r\n                        <div class=\"banner_event\">\r\n                                                <\/div>\r\n                    <div class=\"banner-btn-wrapper\">\r\n                                                                                <\/div>\r\n                        <!-- <a href=\"#\">Link<\/a>\r\n                        <a class=\"arrow-link\" href=\"#\">Link<\/a>\r\n                        <a class=\"external-link\" href=\"#\">External Link<\/a>\r\n                        <a class=\"more-link\" href=\"#\">More<\/a> -->\r\n                    <\/div>\r\n                <\/div>\r\n            <\/div>\r\n        <\/div>\r\n    <\/div>\r\n<script type=\"text\/javascript\">\r\njQuery(document).ready(function($){\r\n    setTimeout(function () {\r\n        console.log('here');\r\n\t\t$('#_youtube-iframe-wrapper').show();\r\n\t}, 2000);\r\n});\r\n<\/script>\n\n<style>\r\n    .cta-btn-wrapper{margin-bottom:2rem;margin-top:-10px;}\r\n<\/style>\r\n<section class=\"wysiwyg_block\">\r\n    <div class=\"container\">\r\n        <div class=\"row\">\r\n            <div class=\"col-lg-8\">\r\n            \r\n            <p>October 3, 2025<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Chair James Eldridge\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<\/strong><\/p>\n<p><strong>Joint Committee on Revenue\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/strong><\/p>\n<p><strong>The State House, Room 511-C\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<\/strong><\/p>\n<p><strong>Boston, MA 02133\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><strong> Chair Adrian Madaro<\/strong><\/p>\n<p><strong> Joint Committee on Revenue<\/strong><\/p>\n<p><strong> The State House, Room 34<\/strong><\/p>\n<p><strong>Boston, MA 02133<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Dear Chair Eldridge, Chair Madaro, and Members of the Committee:<\/p>\n<p>We are writing to convey our strong opposition to H.3110\/S.2033 &#8211; An Act relative to offshore tax avoidance. The legislation seeks to change the state tax treatment of Global Intangible Limited Tax Income (GILTI). While the revenue impacts of these bills are unclear, with a recent DOR analysis suggesting revenues of $150 million or less, proponents maintain this change would come at a projected cost to employers of more than $400 million, which would be the largest tax increase on employers in the state\u2019s\u00a0 history. Given the dramatic uncertainty and instability in the nation\u2019s economy, and the misguided policy premise behind this legislation, we respectfully urge you not to advance it.<\/p>\n<p>In April of this year, our four organizations sent a letter to the Legislature, offering a collaborative approach to addressing the state\u2019s competitiveness challenges. We offered a framework for competitiveness that \u201cwill lead to continued collaboration and progress as we pursue our shared goal of making\u00a0 Massachusetts a highly desirable place to live, work,\u00a0 and do business.\u201d The letter highlighted three critical challenges before us: 1) the cost of living and doing business; 2) external threats to our core strengths; and 3) troubling outmigration trends, particularly of working-age adults.<\/p>\n<p>In its recently released Massachusetts Competitiveness Index for 2025, the Massachusetts Taxpayers Foundation con\ufb01rmed the concerns we expressed earlier in the year. While the state continued to perform well in our traditional areas of strength, such as economic output, wages, workforce education levels, and health care quality, the state remained near the bottom in categories such as business taxes, energy costs, affordable child care, and housing. Some got worse.<\/p>\n<p>To address these competitiveness concerns, our organizations offered\u00a0 four areas of focus that we collectively view as critical to continuing our shared work on addressing the state\u2019s competitiveness: growing and maximizing the state\u2019s\u00a0 labor\u00a0 force; supporting core economic sectors; viewing policy through the prism of cost; and maintaining strong public \ufb01nances. Particularly relevant to the discussion of H.3110\/S.2033 is the cost issue. For employers, increased costs can lead to reduced hiring, expanding or locating outside of the state, or reducing footprint or investment within it. In fact, it already is: the Index found that Massachusetts ranks last in the nation for private employment growth between 2023 and 2204. These trends are a threat to Massachusetts and speak to the need to reduce cost differentials between Massachusetts and other states.<\/p>\n<p>H.3110\/S.2033 would move the state in the opposite direction by making Massachusetts an outlier on business taxes. Under our current tax law, Massachusetts companies pay more in state GILTI taxes than they do in 29 other states. The state, under guidance from DOR, treats GILTI income the same as New York, Connecticut and New Jersey, and taxes this federal structure at as high or higher a rate as 34 other states. Massachusetts is not an outlier in its current tax treatment of GILTI, as some have suggested. With passage of this legislation, we would be.<\/p>\n<p>Additionally, recent passage on the federal level of the One Big Beautiful Bill Act made signi\ufb01cant changes to GILTI. In fact, it\u2019s not called GILTI anymore but is now known as \u201cnet CFC tested income,\u201d or NCTI, with major changes to exclusions, deductions, and rates on this income. These are complicated changes that have not gone into effect yet. Making signi\ufb01cant changes at the state level before knowing the impact of these federal changes would be unwise and irresponsible. The new analysis by DOR is indicative of that. In fact, in its analysis, DOR warns that \u201cin the wake of recent heightened economic and \ufb01nancial market uncertainties, the estimates reported above should be used with caution.\u201d Attempting to make signi\ufb01cant changes now to the treatment of GILTI is not only bad policy but bad timing.<\/p>\n<p>In addition, given ongoing uncertainty driven by constant changes to federal policy, making major changes to the corporate tax code, on the state level, would be particularly harmful. Employers are facing uncertainty around the economy, around federal policy, and around the future of their workforce. In\ufb02ationary pressures, the constantly shifting federal landscape, global trade disruptions, and rising costs are converging to create an economic crisis waiting to happen. In this environment, employers are much more cautious around investment and hiring which is slowing our economy. A massive, unprecedented and misguided tax increase at this time would further exacerbate this uncertainty, causing further retreat from investment and, more concerning for Massachusetts, a continued slide into a less competitive environment for growth.<\/p>\n<p>In our April letter, we took collective responsibility on behalf of the business community to work collaboratively with each other and in partnership with government to collectively address the state\u2019s competitiveness. Our four organizations are reaching out in that spirit of collaboration with an offer to work with your Committee and our public leaders to meet this moment, protect the Commonwealth, and engage in meaningful and productive public- private partnership to ensure our state remains competitive in these unprecedented times. H.3110\/S.2033 is antithetical to that goal and we urge you to reject it.<\/p>\n<p>Sincerely,<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Brooke Thomson\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/strong><\/p>\n<p><strong>President &amp; CEO\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<\/strong><\/p>\n<p><strong>Associated Industries of Massachusetts\u00a0 \u00a0 \u00a0 \u00a0 <\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><strong>James E. Rooney<\/strong><\/p>\n<p><strong>President &amp; CEO<\/strong><\/p>\n<p><strong>Greater Boston Chamber of Commerce<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><strong>JD Chesloff\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<\/strong><\/p>\n<p><strong>President &amp; CEO\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/strong><\/p>\n<p><strong>Massachusetts Business Roundtable\u00a0\u00a0\u00a0\u00a0\u00a0<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Doug Howgate<\/strong><\/p>\n<p><strong>President<\/strong><\/p>\n<p><strong>Massachusetts Taxpayers Foundation<\/strong><\/p>\n<div class=\"wrapper-links\"><a class=\"btn primary-cta btn-arrow\" href=\"https:\/\/bostonchamber.com\/wp-content\/uploads\/2025\/10\/H.3110-S.2033-Joint-Letter-Final.pdf\" target=\"_blank\"><span class=\"icon\"><\/span>Download the Letter<\/a><\/div>  \r\n            <\/div>\r\n        <\/div>\r\n    <\/div>\r\n<\/section>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On October 3, 2025, four major business organizations urged the Joint Committee on Revenue to reject H.3110\/S.2033, warning it would impose the largest employer tax hike in state history and undermine Massachusetts\u2019 economic competitiveness.<\/p>\n","protected":false},"featured_media":34595,"parent":0,"menu_order":0,"template":"","meta":{"content-type":"","inline_featured_image":false},"tags":[37,32],"class_list":["post-41525","policy-insights","type-policy-insights","status-publish","has-post-thumbnail","hentry","tag-business-climate","tag-public-policy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - 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