Council In the News Index

Executives Focus on States' Tax Rates (Telegram & Gazette)

Article published Sep 16, 2010
TELEGRAM & GAZETTE STAFF

BOSTON —  A majority of Massachusetts business and technology leaders surveyed said taxes are the most important factor in determining if a state has a competitive business climate, and 40 percent said the state's business climate is worsening, according to the Massachusetts High Technology Council and the Pioneer Institute, a think tank.

The annual survey of about 40 chief executives also found that chief executives consider the corporate income tax the most important aspect of state tax policy, followed by the personal income tax rate, research and development tax credits, unemployment insurance taxes and the investment tax credit.

About 56 percent of executives surveyed said the state's tax climate is less positive than other states, the organizations reported.

“The state's policymakers must carefully examine how public policy affects business costs and ensure that Massachusetts is competing in all possible areas,” Steve Poftak, Pioneer Institute director of research, wrote in a policy paper examining the survey. “To be effective, Massachusetts policymakers must avoid splashy, high profile efforts to attract marquee firms or sectors and focus instead on improving the foundation for our entire tech-based innovation economy to better position Massachusetts as a place where innovators want to work, entrepreneurs want to start companies, and employers want to grow their businesses.”