Greater Boston Chamber of Commerce and MassCPAs Release Tax Reform Recommendations

Two Massachusetts business groups released a tax reform proposal today that is designed to improve the state’s competitiveness – and to counter other states’ aggressive pursuits of the Commonwealth’s employers and talent.  With three years of historic revenue growth and a structural budget surplus, the state is well-positioned to adopt tax reforms that demonstrate its commitment to building the region’s economy and increasing jobs for residents.

The joint effort by the Greater Boston Chamber of Commerce and the Massachusetts Society of CPAs focuses on policy changes that will ultimately ensure there are jobs and opportunities for economic growth available to Massachusetts residents, both critical factors to achieve an inclusive economy. The goals of the proposed tax reforms are to:

• Mitigate the negative effects from tax policy on employers, job creators, and economic decision makers;
• Correct tax policies for which Massachusetts is an outlier;
• Stimulate new economic activity and protect and sustain current economic activity; and
• Address the millionaire’s tax unintended consequences.

“This proposal for tax reform is exactly what the Commonwealth – its residents, families, and businesses – need right now. To compete and win today, we need to address and solve for the negative effects and unintended consequences that make it difficult to start and sustain a business in Massachusetts and to work, live, and be successful here,” said James E. Rooney, President & CEO, Greater Boston Chamber of Commerce. “Understanding that tax reform is urgently needed and the issues are incredibly complex, we are proud to partner with MassCPAs and business leaders across the Commonwealth to ensure that Massachusetts remains competitive and is a place where economic opportunity and jobs are in abundance.”

“Advocating for our members and the communities they serve is what we do at MassCPAs," said MassCPAs President and CEO Amy Pitter. "This has been particularly top of mind since the millionaire’s tax passed. In a December 2022 survey of MassCPAs members, 73% said their conversations with clients about changing their domicile have increased, so the proposals we offer are to stop that migration and boost the Commonwealth’s competitiveness. These tax proposals intend to protect and generate economic activity by reducing the negative effects from certain tax law; correct policies that make Massachusetts an outlier; and address unintended consequences of the new surtax. Our efforts are ongoing, and we are grateful to the Chamber and tax and legal experts for their work to keep Massachusetts a competitive state.”  

The specific proposals include reforming the state’s estate tax, reducing capital gains tax rates, eliminating the state’s “sting tax” on S-corps, and eliminating other policies that penalize Massachusetts employers. The attached slide deck provides more details on the specific proposals, the context for tax reform, and how Massachusetts compares nationally.

The proposal was developed by the Greater Boston Chamber of Commerce and the Massachusetts Society of CPAs and with detailed input from tax and legal experts.

About the Greater Boston Chamber of Commerce
We are the convener, voice, and advocate of our region's business community, committed to making Greater Boston the best place for all businesses and all people to thrive. We help our members and Greater Boston succeed by convening and connecting the business community; researching, developing and advocating for public policies that contribute to our region’s economic success; and providing comprehensive learning and development programs designed to grow strong business and civic leaders. Learn more at BostonChamber.com.

About the Massachusetts Society of CPAs
The Massachusetts Society of Certified Public Accountants, Inc. is the state’s professional association of certified public accountants, representing over 11,000 members in public accounting practice, industry and business, government and education. The Society works to develop and maintain high professional standards and offers a wide array of legislative, technical and referral services to its members.