That’s the question put forth by Verizon, a company currently exempt from paying property taxes on its telephone poles.
AS MASSACHUSETTS wrestles with its fiscal crisis, Beacon Hill is working hard to find ways to balance next year’s budget. At the same time, the state languishes 49th in the nation in job growth and its population is decreasing. Should taxes be raised to plug budget gaps? Can spending be cut? How do we grow jobs? What’s the right answer for Massachusetts?
Payroll and sales taxes make up the bulk of the state’s revenues. The state’s course can’t be reversed without economic and job growth.
One proposal that is counterproductive is the repeal of an investment exemption for telecommunications companies. It works like this: Certain communications network investments are exempt from property taxes in order to stimulate more investment in Massachusetts, and the state gets to collect taxes on business profits. (Banks and manufacturers enjoy the same property tax exemptions, and software companies were added last year.)
What are readers’ answers?
Source: State tax loophole or smart policy? – By Donna C. Cupelo, Regional Vice President, Verizon, in The Boston Globe