Mass tax breaks debate to happen 2013

BOSTON, Mass. (WWLP) - Lawmakers say billions of Massachusetts tax expenditures, also known as tax breaks, have never been reviewed.  But that’s about to change during next year’s state budget talks, as lawmakers prepare to evaluate the effectiveness of the tax code for the first time.

“It will be very different, much more contentious,” said Revenue Committee House Chairman Jay Kaufman (D-Lexington) on next year’s budget review.  “We will never again ignore this huge piece of tax policy without the kind of scrutiny that any policy demands and that the public deserves.”

From now until January, Kaufman says he will file legislation to review, end, or reduce tax breaks.  Business advocates warn that the Massachusetts tax burden is nearly two times the national average and tax incentives help lighten that load.

“We’re fourth or fifth highest in the country for our corporate tax burden, so that’s something we need to keep an eye on.  That’s something we need to try to reduce a little bit if we can.  We have a great education system, we have an uncompetitive cost structure,” said Greater Boston Chamber of Commerce Executive Vice President Jim Klocke.

Patrick administration officials say the focus needs to be on what the purpose of our tax policy is – whether it’s to maximize job growth, improve the business climate or a combination of factors.

“Before we start saying which programs are no good let’s have a conversation that starts what are we trying to get out of this and lets measure the results,” said Housing & Economic Development Secretary Gregory Bialecki.

Last year there was outrage when energy company Evergreen Solar declared bankruptcy after receiving millions of dollars in tax breaks.  Business advocates say the actions of a few companies should not reflect the industry as a whole.