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This billionaire corporation tax bill has readers divided
A Massachusetts advocacy group argues that the state is losing out on millions of dollars in taxable income due to offshore corporate tax evasion. But readers aren't so sure.
Could a billionaire corporation tax be the answer to generating new revenue for the state? A Massachusetts advocacy group argues that the state is losing out on millions of dollars in taxable income due to offshore corporate tax evasion. But Boston.com readers aren’t so sure.
Raise Up Massachusetts, a grassroots coalition of community groups, is collaborating with state lawmakers to pass “An Act combating offshore tax avoidance.” The bill (S.2033) would require global mega-corporations like Apple, Amazon, and McDonald’s to pay the state’s current corporate tax rate on a larger portion of the profits they hide offshore.
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The proposed law would increase the Global Intangible Low-Taxed Income (GILTI) tax from 5% to 50%, bringing it in line with federal tax policy and that of other states in New England. GILTI is a way to calculate a U.S. multinational company’s foreign earnings to make sure it pays a minimum level of tax.
The bill, which was introduced in January, is currently under review by the Joint Revenue Committee in the state Senate. It’s not the first time the state has taxed the wealthy, either. In 2022, Massachusetts voters approved the 4% surtax on incomes over $1 million, or the “millionaires tax,” as it was called. In 2024, the surtax was estimated to have generated more than $1.8 billion in revenue for the state.
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State Senator Jason Lewis, one of sponsors for the billionaire corporation tax bill, said the revenue generated from the increased tax rate could help fund the state’s healthcare and education systems – which are currently facing federal budget cuts.
“As Massachusetts faces the potential for billions of dollars in federal budget cuts that threaten our healthcare and education systems, we must raise new revenue to prevent devastating cuts to the public services that our children, families, and seniors depend on,” Lewis said in a statement.
When we asked readers to weigh in on the bill, more than 670 readers responded. They were divided on the billionaire corporation tax: 50% were in favor of the bill, while 50% were against it.
Should Mass. pass a law to further tax the profits of global mega-corporations?
Yes
50%
No
50%
Other
0%
Some readers in favor of the bill said Massachusetts should follow the example of its New England neighbors, several of which have GILTI tax rates set at 50%.
“Mega-corporations should be accountable for their tax obligations in Massachusetts the same way they are in New Hampshire, Rhode Island, Vermont, and Maine,” Mike C. from Somerville said.
Others in support of the tax said the state needs all the help it can get to bolster its revenue – a responsibility that the wealthy should participate in.
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“Wealth inequality is increasing. The millionaires tax has brought in much needed revenue to the state but the wealthy are still far from paying their fair share,” reader Rochelle R. from Brookline said.
However, those against the bill argued the bill doesn’t address the root cause of the state’s financial woes, which some said is “a spending issue, not a revenue receipt issue.”
Below, readers weigh in on a billionaire corporation tax bill.
Responses have been lightly edited for grammar and clarity.
Should Mass. pass a law to further tax the profits of global mega-corporations?
Yes
“When corporations dodge taxes, the citizens of Massachusetts end up paying the balance in our own tax burden and through diminished public services. Massachusetts should join our neighboring states and close corporate tax loop holes and ensure that corporations pay their fair share.” – Alan B., Belmont
“It is outrageous that corporations, no matter where their huge profits come from, are able to escape paying their fair share of taxes. Especially today, with Trump removing funding for federal programs that are so needed. It’s time for millionaires, billionaires, and huge corporations to pay. Their CEOs will continue to be paid unconscionably high salaries and bonuses.” – Anne K., Jamaica Plain
“Large corporations benefit tremendously from public investment that they take for granted: roads for their workers to drive on, sewers to service their buildings, police and fire response, utility and IT infrastructure, and public education to educate their current and future workforce. It’s time that they supported those services instead of funneling all economic benefit from this foundation into the hands of a few wealthy shareholders.” – Jess A., Lawrence
“I want wealthy corporations, as well as wealthy individuals, to pay more toward the public goods they benefit from. Fairly taxing corporations, and the earnings (and I hope in the future, wealth) of wealthy individuals would begin to redress the decades of harms caused by both undertaxation of the wealthy and overtaxation of poor, low and middle income folks.
“Concentration of wealth has made our State, nation and world more polluted, more unequal and more unjust, sicker, more violent and less democratic. We can have a better Massachusetts and a better world. Fair share taxes can help put us on that path.” – Charlene D., Berlin
“The federal government already allows this and the mechanisms are in place for declaring the income. Neighboring states have much higher GILTI tax rates, the full 50% in at least some cases if not all. Why should larger international corporations be able to shelter money – money earned in our state while smaller more local businesses pay fully? We needed the revenues even before current and upcoming federal cuts to programs and now we need them even more.” – Pam W., Newbury
No
“While fundamentally a sound idea in principle, the state government will abuse it and eventually expand it to all corporations. Also this does not address the root problem of the issue. That issue is simply the state and local governments spending more tax dollars than is generated. It is a spending issue, not a revenue receipt issue.” – Marquis, Salem
“Millionaire’s tax already has the educated and successful fleeing to other states. Taxing corporations is fundamentally ignorant. Tax the dividends, not the corporation.” – J.K., Danvers
“We are losing business and residents at an alarming rate. This proposal would continue to drive people out of state and lead to less revenue for the state.” – Harry J., Woburn
“The corporations won’t simply accept and absorb tax increases…they ultimately pass the increases on to consumers whether it be via raising prices and/or eliminating/reducing the workforce in the state that has implemented the tax increases. The consumer and/or employees never win in these situations.” – Maura B., West Dennis
“The problem isn’t taxation – it’s spending. If we’ve got $9 billion tucked away in a ‘rainy day’ fund, why aren’t we using it to, you know, fund essential services? Is it not raining hard enough yet? Meanwhile, local towns are slashing their budgets like it’s a Black Friday sale just to make ends meet. Slapping extra taxes on corporations might work for a quick cash grab, but long term? Businesses will do what businesses do best – adapt. And that might just mean packing up and waving goodbye to Massachusetts.” – Chris C., North Andover
Boston.com occasionally interacts with readers by conducting informal polls and surveys. These results should be read as an unscientific gauge of readers’ opinion.
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