Massachusetts lawmakers are considering a tax increase on multinational corporations as federal cuts to public services loom.
A coalition of labor, education and health-care workers say lawmakers should target corporations such as Apple, Amazon and McDonald’s, which often shield profits in offshore tax havens.
Harris Gruman, executive director of the Service Employees International Union Massachusetts State Council, said more than 70 lawmakers are already on board.
“This would just help level the playing field between 99% of Massachusetts businesses that do pay their full corporate tax and this 1% of very wealthy corporations that pay much less,” Gruman contended.
A recent MassBudget report found the state could reclaim hundreds of millions of tax dollars each year by ensuring corporations with low taxed income pay their fair share, a practice undertaken by most other New England states.
Prior to the Trump administration threatening to withhold federal funding, Massachusetts already faced a budget shortfall with potential cuts to vital housing, health care and education services. Gruman pointed out in addition to raising corporate taxes, lawmakers could also tap a portion of the state’s nearly $9 billion “rainy day fund” to help ensure residents get the care they need.
“They could cut $1 billion, they could cut $2 billion,” Gruman suggested. “We don’t know. We have to be prepared to backfill that as best we can because these are essential services.”
Gruman stressed the state’s “rainy day fund” was built for today’s current economic climate and using even $1 billion of it to replace the loss of federal funds would still leave a large balance for future years. He added the public backs his coalition’s proposals, as they did the Fair Share Amendment, the voter-approved “millionaire’s tax,” which continues to support public education and transportation investments.