The National Federation of Independent Business (NFIB) criticized Massachusetts House leaders on March 18 for connecting conformity with federal tax law to a possible state income tax cut. The organization, which represents more than 5,000 members in Massachusetts, released a statement expressing concern over the legislative approach.
The issue is significant because it could affect both residents and small businesses in the state. NFIB said that tying federal tax conformity to future reductions in the state income tax may drive taxpayers out of Massachusetts.
Christopher Carlozzi, NFIB State Director in Massachusetts, said, “It seems Massachusetts lawmakers want a modern redefinition of Evacuation Day, no longer the moment when British ships left Boston Harbor, but rather a period where more taxpayers flee the Bay State for more favorable tax climates. At least that’s the risk they pose by tethering federal tax conformity to potential future reductions in the state income tax.” He continued, “Beacon Hill leaders either believe that tax relief is a good thing for the Commonwealth or not, and they should not rely on extortionary gimmicks to prevent residents and small businesses from keeping more of their hard-earned money when they need it most.”
NFIB describes itself as nonprofit, nonpartisan, and member driven. The group has advocated for small and independent business owners across all 50 states since its founding in 1943.
As lawmakers continue to debate changes to state tax policy, organizations like NFIB are likely to remain active participants in discussions about how best to support local businesses.
