An Open Letter to Governor Deval Patrick and Members of the Legislature

As members of the Massachusetts business community, we are writing in support of the proposals to restore fairness to business taxation in the Commonwealth and to close the “tax loopholes”. We specifically refer to the provisions of the tax code which have created unintended corporate tax benefits to a small number of mostly large and sophisticated corporations doing business in the state. Some of those loopholes include:

• “Check the Box”- would close the loophole that currently allows some businesses to designate themselves as a corporation at the federal level and avoid paying taxes as using a different designation like a “trust” for example at the state level. Forty – five other states have already closed this loophole.
• “Combined Reporting” – Prevent multi-state companies from shifting income between subsidiaries in various states as a way to avoid state taxes. Twenty states have passed combined reporting laws – including most recently, New York. Governors in Iowa, Michigan, North Carolina and Pennsylvania have all called for the practice.
• “Telecom loophole” – would eliminate a 90 year old property tax exemption for phone companies first adopted as part of a government initiative to bring phones to everyone’s homes, when profits were regulated and there was only one phone company Bell Telephone.
• “Insurance Company loophole” – requires businesses owned by insurance companies to pay the same taxes as other businesses.
• “Deeds Excise loophole” – closes the loophole that allows companies to avoid paying the real estate transfer tax by creating a shell subsidiary which is given temporary ownership of the real estate, and sold rather than selling the real estate directly.

Sincerely yours,

Arnold Hiatt, former CEO of Stride Rite Corporation
Laurence Hammel, Owner, The Longfellow Clubs
Mark Kritzmann, President and CEO, Windham Capital Management, LLC
Steve Grossman, President and CEO, Grossman Marketing Group
Ali Ismail, Owner, Sinbads, Worcester
Amy Cao, President, Maynard Outdoor Store
Amy Gerber, Owner, Tel-Affinity Corp, Needham
Andrea Rogers, Co-owner, Rogers Motors, Shutesbury
Basilio Encarnacion, Owner, Rincon Macorisano, Lynn
Bernard Tavarez, Owner, The Messiah Travel, Salem
Candido Guerrero, Owner, Rincon Criollo, Lynn
Carmen V. Fernandez, Owner, Carolina Montehatillo Variedades Gift Shop, Springfield
Carol Duke, Owner, Flower Hill Farm, Williamsburg
Cesar Santana, Owner, Services Express, Lynn
Charlo Maurer, Owner, Peace of Money, Watertown
Chris Campbell, Owner, Home Town Magnets, Franklin
Cindy Fuhs, Still River Veterinary Services, Bolton
Conrad Geyser, Owner, Cotuit Solar, Cotuit
Constance Sumberg, Owner, Workstead Industries, Greenfield
Cristino Acosta, Owner, Canon's Place, Lynn
Dave Rody, Owner, Dave Rody Studios, Saugus
David England, David England, Enrolled Agent, Brookline
Desi D’Oleo, Owner, Desi Barber Shop, Lynn
Dianne and Edward Stoler, Owners, DSE Associates, Whitinsville
Domingo Dominguez, Owner, DJD, Salem
Elisabeth C. Goodman, Esq. Partner, Ware & Goodman LLP, Williamstown
Fransisco Soriano, Owner, Soriano Restaurant, Lynn
Gary West, Partner, Gillespie Corporation, Ware
Hilary Price, Cartoonist, Rhymes With Orange cartoon strip, Florence
Jack Fritsch, Owner, The Antiques Depot, Nantucket
Jennifer Black, Founder, Delightsoftheearth.com, Williamsburg
Jim Lovejoy, Owner, Jim Lovejoy Cabinetmaker, Sheffield
John McGrath, Chef de Cuisine Restaurant Consulting Services, Stoughton
John Lochhead, Managing Partner, Jadan LLC, Conway
Jorge Ortiz, Owner, Cary Beauty Supply, Lynn
Jose R. Rodriguez, Owner, Rodriguez Mini Mart, Worcester
Joseph Kopera, Geologic Consultant, Sunderland
Juana Huerta-Cruz, Owner, Jasmine's Creations, Springfield
Kathleen Dunn, Owner, Montessori Beginnings in Sandwich, Falmouth
Ken Kipen, Partner, Hourglass Studio, Ashfield
Laurence Ely, Director, Demeter Institute, Amherst
Leoncio Vizcaino, Owner, Salem Business Center, Salem
Lois Levin, Owner, Lightbox Company of New England, Newton
Lynn Wolbarst, Co-owner, Forsyte Associates, Inc., Sharon
Michael Risen, President, M. Risen Consulting, Housatonic
Michael F. Wilcox, President and CEO, Alford Associates, Inc. Alford
Nicholas Zauras, Owner, National Council of Jewish Women Thrift Shop, Worcester
Norman DePietro, Project Safety Manager, WBI, Falmouth
Omar Guerero, Owner, Omar&Oscar inc., Lynn
Pamela Webster-Walsh, Owner, vis-à-vis design, Duxbury
Patricia Force, Owner, Quiet Corner, Vineyard Haven
Peter Wells, Principal, The Berkshire Design Group, Inc., Northampton
Peter Norgeot, Owner, Northcape Towing & Marine Service, Cape Cod
Philip R. Olenick, Attorney at Law, Boston
Richard Fmarakweh, Owner, Rachel’s Market, Worcester
Richard Fomo, Richard Fomo Video Productions,  Jamaica Plain
Rozann Kraus, Founder, The Dance Complex, Cambridge
Russell Freedman, Second Life Books Inc., Lanesborough
Sandy Scheir, Broker/Owner, Cape Cod Shoreside Realty, Orleans
Sarah Spademan, Owner, Spademan Pottery, Cambridge
Steven MacLeay, Owner, MacLeay Construction Co Inc., Sheffield
Susan Moore, President, Moore Financial Advisors Ltd., Watertown
Thomas Marini, CEO Marini Enterprises, Pittsfield
Trudy Vermehren, President, Fieldworks Inc., Wellfleet
Walter Cudnohufsky, President, Walter Cudnohufsky Associates Inc., Ashfield
Zunilda Ozoria, Owner, Textura Hair Design, Lynn