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Council In the News Index
Charles Baker Calls for $175M in Tax Cuts for Biz (Boston Herald)
By Thomas Grillo
Friday, June 11, 2010
Republican gubernatorial nominee Charles Baker called yesterday for $175 million in tax cuts to boost the state’s economy.
“We must make bold moves to improve our business climate and shake up the status quo if we want to get Massachusetts back to work,” Baker told business leaders at a Greater Boston Chamber of Commerce breakfast.
Under Baker’s plan, the tax code for businesses would be simplified and the corporate tax rate would be lowered to a flat 5 percent over four years. The 53-year-old Swampscott Republican would also reduce the sales and income tax rate to 5 percent, phase out so-called ancillary business taxes on S and C corporations and reduce unemployment insurance rates for some employers.
Following the speech, Baker said he would replace the money lost to the state coffers with $1 billion in savings and reforms.
Baker disputed Gov. Deval Patrick’s assertion that the state is on the mend and on the move.
“It’s not getting worse anymore and that’s a bad place to jump for joy,” he said. “Our goal should be to lead on the national recovery, not to lag it or follow it and there are still 320,000 people out of work.”
State Treasurer and independent candidate for governor Timothy Cahill, who has proposed a series of tax cuts for start-up companies as well as rolling back the sales and income tax to 5 percent, said he applauds Baker for agreeing with him.
“The next thing you know he will call himself an independent,” Cahill said.
In an e-mailed statement, a Patrick spokesman said the governor is open to any ideas that keep the recovery going and help Massachusetts companies grow and create jobs.
“There’s a lot to like about some of Charlie’s proposals and many we are already implementing,” the statement said. “The Patrick administration has worked with the business community to lower the corporate tax rate while maintaining our commitment to funding education, health-care reform and local aid.”
The Massachusetts High Technology Council applauded Baker’s tax plan, saying it would improve the state’s tax and cost-competitiveness and create a predictable cost structure.
In November, Baker, Patrick and and Cahill will face off in the general election.
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