Tax reform on the way in Massachusetts

BOSTON (WWLP) - The House of Representatives’ lead revenue chief says comprehensive tax reform is coming, and it begins by reevaluating how the Commonwealth doles out about $26 billion in annual tax breaks to businesses to stimulate economic growth, without really knowing whether they work or not.

The Tax Expenditure Commission has unanimously approved a final report listing several recommendations to bring more transparency and accountability to the tax code. Among them

• Requiring the Legislature and Governor to clearly outline the public policy purpose behind tax breaks
• Having the Department of Revenue collect data to analyze whether those tax breaks are achieving their purpose
• Adding sunset clauses or “clawback” provisions that allow the state to end or recoup tax benefits from companies that do not meet obligations.

Revenue Committee Chairman Jay Kaufman (D-Lexington) explained what the report means. “What we have with this report is the beginning of a public review of our entire tax system, and that is in order,” Kaufman said.

Secretary of Administration and Finance Jay Gonzalez talked about the goals of this work. “Finding ways to reduce the tax expenditure budget, to simplify the code, but also to make sure that we are only keeping those tax breaks that are really working,” Gonzalez said.

Last year, Massachusetts lost tens of millions in tax incentives to the now-bankrupt company Evergreen Solar .

State Auditor Suzanne Bump told 22News that they are working to make the tax system work better. “This just brings a whole new level of accountability to make sure that our tax policy is equitable and it’s actually working as intended,” Bump said.

Kaufman said next year’s agenda will include a reexamination of the state’s entire tax infrastructure.