Unsurprisingly, the less state income taxes you are forced to pay, the more money you have to reinvest in your small business. NFIB Massachusetts State Director Christopher Carlozzi testified before the Special Joint Committee on Initiative Petitions explaining what income tax relief means for Main Street businesses.

In his testimony Carlozzi explained what a pass-through business is and how their profit is reinvested in the small business. He made the case that if the state income tax is reduced by 20% to 4%, it will mean business owners will have more money to purchase new equipment and land, upgrade their facilities, offer stronger benefits for their workers, and create new jobs to strengthen the Massachusetts economy.

Lawmakers pushed back on the attempt to reduce income taxes and trigger more 62F law refunds by saying the state needs the revenue for an ever-growing budget, especially to cover the rising cost of healthcare. Carlozzi stressed that small businesses are facing the very same problems. He argued that 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. Meanwhile, the state budget has ballooned by more than 50% in the last seven years.

NFIB will keep business owners updated on the progress of the two income tax-related ballot questions (House Bill Nos. 5006 and 5007) as they move through the legislative process.