The National Federation of Independent Business (NFIB) Massachusetts State Director Christopher Carlozzi testified before the Special Joint Committee on Initiative Petitions on Mar. 27, outlining the effects that income tax relief could have for small businesses in the state.
Carlozzi said that reducing the state income tax by 20% to 4% would allow business owners to reinvest more money into their operations. He explained that this could help them purchase new equipment and land, upgrade facilities, offer better benefits to workers, and create new jobs in Massachusetts.
During his testimony, Carlozzi described how pass-through businesses operate and emphasized that their profits are often put back into growing the business. Lawmakers questioned whether lowering taxes might lead to more refunds under the state’s 62F law and reduce available revenue for public needs such as healthcare costs. In response, Carlozzi said small businesses also struggle with rising expenses.
“Massachusetts employers face double-digit healthcare premium annually, they experience rising energy bills, that labor costs are skyrocketing. In short, employers need relief from the high cost of operating a business in Massachusetts,” Carlozzi said. He noted that while businesses deal with these challenges, “the state budget has ballooned by more than 50% in the last seven years.”
NFIB plans to keep business owners informed about House Bill Nos. 5006 and 5007 as both income tax-related ballot questions continue through legislative review.
