MassFiscal Reaction to Baker and Spilka Signaling Support to Fix PPP Tax

One Week to Go to Convince Mariano

The Massachusetts Fiscal Alliance made the following statement today in response to recent news that after nearly 335 days to consider the proposal, Senate President Karen Spilka and Governor Charlie Baker would support changing Massachusetts law to not collect the state’s 5% income tax on certain small businesses that received a forgivable Paycheck Protection Program (PPP) loan. The first round of PPP loans became available on April 3, 2020 and business taxes are due on March 15, which means the legislature must act by the end of next week in order to meet the tight deadline. Before they can do that, Speaker Mariano needs to be convinced. 

According to a recent statewide poll commissioned by the Fiscal Alliance Foundation, one of the top issues for primary Democratic and Republican voters was “jobs and the economy.”

“State House leaders are waiting until the very last minute to provide relief to some of the state’s most vulnerable businesses. With nearly 335 days since the first PPP loan was administered, Massachusetts businesses and their employees must convince a very opaque legislature to act by the end of next week, otherwise time will run out,” stated Paul Diego Craney, spokesperson of Massachusetts Fiscal Alliance. 

The businesses that would likely have to pay the state’s 5 percent tax are small pass-through companies, such as limited liability corporations, partnerships, independent contractors, sole proprietors, and those who are self-employed.

“What does it say that former President Trump, former Senate Majority Leader McConnell, and Speaker Pelosi can all agree on a major program to help small businesses, but the Massachusetts legislature cannot. Speaker Mariano would be foolish to continue to drag his feet on this. Any delay in action and relief will only prolong the state’s economic recovery,” continued Craney.

Early this morning, MassFiscal launched a Call to Action urging its members to contact the Governor, and their state Senator and Representative to take immediate action.

“Let’s hope enough business owners, employees, and taxpayers voices are heard to persuade a very reluctant and opaque State House to do what is right for the struggling businesses and their communities,” noted Craney.

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