Recent NFIB/Massachusetts victories:
Reduced workers' comp rates, saving an average of 7 percent on premiums
In 2004, the insurance industry petitioned the state insurance board for an overall 10 percent workers' comp rate hike. NFIB/Massachusetts lobbied for a reduction in the rates, since the system was used less in 2003. The insurance board sided with NFIB and enacted a 4 percent reduction in overall rates from the 2003 rate structure. The predicted disaster did not occur in 2004 and the insurance commissioner approved an additional 3 percent reduction in 2005.
Supported 100 percent tax deduction of health insurance premiums, saving 5 percent on premiums
In 2004, the state adopted the federal code relating to income tax deduction of health insurance premiums for sole proprietors, partnerships and "S" corporations. The federal phase-in is now complete, so 100 percent of the premiums are deductible on both the state and federal income tax forms.
Secured workers' comp exemption, saving hundreds or thousands depending on the business
Successfully worked with both parties to restructure the workers' compensation laws so that corporate officers who own 25 percent or more of a closely-held firm are able to voluntarily exempt themselves from workers' compensation coverage. Conversely, sole proprietors who have traditionally been excluded from workers' comp coverage are now able to secure policies on themselves. This is particularly important for non-incorporated building contractors who are often required to carry workers' comp in order to qualify for building permits and construction projects.
Reduced state income tax by more than 10 percent
NFIB/Massachusetts was heavily involved in the grassroots promotion of the economic benefits of rolling back the income tax and won a decisive victory to phase in the income tax reduction. While the income tax currently stands at 5.3 percent, this is still a significant reduction from the 5.95 percent percent level of the late 1990s. When another budget crisis occurred in 2002, the legislature froze the income tax rate at 5.3 percent and has continued to block the final reduction to 5 percent from taking effect.
Eliminated retroactive capital gains tax
After a Supreme Court ruling that the legislature could not legally change the capital gains tax rate in mid-2002, the Legislature -- under pressure from affected taxpayers and NFIB -- finally agreed to make the new higher rate effective Jan. 1, 2003. Everyone in the state who paid capital gains taxes in 2002 received either a refund of taxes paid or a reprieve from payment for gains realized four years previously.
VICTORY: NFIB/Massachusetts-sponsored legislation making workers' compensation optional for owners of closely held corporations was enacted, giving owners of at least 25 percent of their business the option to decline workers' compensation coverage for themselves. The new law also requires guarantees sole proprietors and partners access to workers' compensation coverage.
VICTORY: NFIB/Massachusetts successfully blocked 80 percent of the mandated health benefits proposed last year and a law was passed implementing a cost-benefit analysis for all proposed future mandates. Mandates account for 15 to 20 percent of the premiums in Massachusetts, which already has more mandates than any other state.
VICTORY: NFIB was one of only three statewide business groups supporting an initiative on the November ballot to rollback the personal income tax to five percent. Most NFIB members in Massachusetts are not incorporated and therefore, as business owners, pay the personal income tax just like their employees. Question 4 passed with 60 percent of the vote in favor of this tax cut.
VICTORY: NFIB opposed an initiative on the November ballot, which attempted to create a universal health care system in Massachusetts. NFIB opposed this reform due to the lack of specifics on how to create the system and who would pay for these very costly changes. Question 5 was defeated by a 53 percent to 47 percent margin.
2000:
Delayed implementation of Mental Health parity until 2002
Supported successful ballot initiative to roll back income tax to 5 percent
Defeated ballot initiative to create a universal health care system in Massachusetts
Passed a unemployment insurance rate freeze
Defeated increase in capital gains tax
1999:
Passed unemployment insurance rate freeze
Repealed Pay to play provision at DOR
Managed care reform stalled
Preserved 0 percent tax on capital gains
Workers' compensation 20.3 percent rate reduction. Workers' compensation rates have come down by over 50 percent, since the passage of the 1991 reforms began taking affect in 1994, passed with the help of NFIB/Massachusetts.
1998:
Passed unemployment insurance tax reduction
Passed investment tax reduction
Defeated minimum wage increase
Stalled Managed care reform
Reinstated appeals process in unemployment insurance notification
1997:
Passed unemployment insurance rate reduction
Passed utility restructuring law
Stalled bill requiring onerous product labeling
Successful in getting investment tax reduction on the statewide ballot
1996:
Repealed employer mandate on health insurance
Passed reforms to small group law
Passed non-group health insurance
Removed employer training mandate from Harassment bill
1995:
Passed unemployment insurance rate freeze
Delayed health insurance mandate
Stalled family leave expansion
