Legislative Letter on Telecom Tax Exemption
Jewish Alliance for Law and Social Action
July 25, 2007
RE: In support of closing the Telecom Tax Loophole
Dear Legislator:
JALSA is part of a coalition of civic, educational, labor, and human services organizations working to close the Telecom Property Tax Loophole because we believe that a tax system that is fair increases public confidence in government and benefits our citizens.
With local cities and towns struggling for years to meet the increased financial burdens of employee health care, energy costs, and school transportation costs, it is not equitable that some corporations should profit from unfair tax exemptions. When everyone pays its fair share, the burden is more appropriately distributed.
Why should Massachusetts local phone carriers pay only 1.1- 1.3% in local taxes (2006) when the U.S. average for local exchange carriers is 3.6% and carriers in Rhode Island and New York pay 8.2% and 7.9%
If the amount of taxes were directly related to benefits received, such a tax loophole might be more understandable. But, the evidence suggests the opposite conclusion. Massachusetts phone companies pay next to the lowest taxes as a share of revenue, but have the eighth from highest average monthly residential rate. Figures from the Massachusetts Budget and Policy Center tell us that FCC figures reveal no significant relationship between the amount of state taxes and the average monthly rate for residential phone service.
The current tax exemption does not provide any carrot and stick incentive for local investment. It is simply a vast “giveaway” to the phone companies.
JALSA urges the closing of the Telecom Tax Loophole. We ask you to urge the Speaker to bring this legislation to the floor.
Sincerely,
Sheila Decter
Executive Director
July 25, 2007
RE: In support of closing the Telecom Tax Loophole
Dear Legislator:
JALSA is part of a coalition of civic, educational, labor, and human services organizations working to close the Telecom Property Tax Loophole because we believe that a tax system that is fair increases public confidence in government and benefits our citizens.
With local cities and towns struggling for years to meet the increased financial burdens of employee health care, energy costs, and school transportation costs, it is not equitable that some corporations should profit from unfair tax exemptions. When everyone pays its fair share, the burden is more appropriately distributed.
Why should Massachusetts local phone carriers pay only 1.1- 1.3% in local taxes (2006) when the U.S. average for local exchange carriers is 3.6% and carriers in Rhode Island and New York pay 8.2% and 7.9%
If the amount of taxes were directly related to benefits received, such a tax loophole might be more understandable. But, the evidence suggests the opposite conclusion. Massachusetts phone companies pay next to the lowest taxes as a share of revenue, but have the eighth from highest average monthly residential rate. Figures from the Massachusetts Budget and Policy Center tell us that FCC figures reveal no significant relationship between the amount of state taxes and the average monthly rate for residential phone service.
The current tax exemption does not provide any carrot and stick incentive for local investment. It is simply a vast “giveaway” to the phone companies.
JALSA urges the closing of the Telecom Tax Loophole. We ask you to urge the Speaker to bring this legislation to the floor.
Sincerely,
Sheila Decter
Executive Director
Labels: Corporate Tax Loopholes
posted by JALSA at 12:33 PM
0 comments
