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Local Business Owners Want Tax Loopholes Plugged

February 26, 2007

Some local business owners want a few corporate tax loopholes plugged. They're backing a proposal by Governor Patrick called "combined reporting," claiming it would result in a multi-million dollar windfall for the state.

Currently, large multi-state corporations are able to shift funds around, declaring their profit in states with lower taxes, while locally owned businesses pay all of their taxes in Massachusetts. Laury Hammel, owner of The Longfellow Clubs, says Patrick's proposal would even the playing field.

"Over half the retail volume in our state is done by local, small, independent businesses, not the big corporations. And I don't see why the big corporations should be getting an unfair advantage. If they're doing business in the state, they should be paying the same taxes that I'm paying -- and to my understanding, they're not. I don't see how that can possibly benefit me, or our economy, or our state."

Seventeen states already require combined reporting. Estimates are that it would save Massachusetts about $130 million annually.

Kevin Clay/Jamie Folsom, Public News Service - MA