GOP Proposal to Repeal Combined Reporting Provisions Draws Strong Support at Hearing

Legislation filed jointly by House and Senate Republicans to repeal the combined reporting provisions of the state’s corporate tax laws drew strong support at a legislative hearing earlier this week. The Boston Herald noted that representatives from Stop & Shop, Nestle and other companies affected by the new law were “out in force” to let members of the Joint Committee on Revenue know that combined reporting “unfairly punishes” foreign-owned companies that operate in Massachusetts.

Even before the combined reporting law went into effect in January, the Organization for International Investment was advising its members not to invest in Massachusetts or expand its operations here as long as the law remains on the books. That’s not exactly the type of message you want to hear when your state is hemorrhaging jobs in the middle of one of the worst global recessions ever. But until combined reporting is repealed – or at least amended to address the concerns of the business community – the Commonwealth will continue to lose out on vital investments by foreign-based firms, and to see more job losses as companies relocate to states with a more favorable business climate.

Patrick Bypasses State Office on D.C. Trip

Looking at the governor’s recent schedule, we couldn’t help but notice that Deval Patrick has been spending a lot of time in Washington, D.C. over the last couple of days. What’s surprising is that, although his two-day itinerary included meetings throughout the Capitol, no official business was scheduled to take place in the state’s D.C. office, located in Suite 208 at 444 North Capitol Street (pictured above).

Both the House and Senate declined to fund the D.C. office as a separate line item in the Fiscal Year 2010 state budget. With the state facing multi-billion dollar revenue shortfalls, and countless programs falling under the budget ax, legislators wisely concluded that the D.C. office is an expendable luxury the state can do without.

But in an act of defiance, Governor Patrick last week re-inserted $400,000 in funding for the office in a supplemental budget, which is now before the House Ways and Means Committee. Given how ferociously he has defended the D.C. office, you would think that Patrick would at least spend some time there when he’s in town.

If Patrick is so insistent on keeping the D.C. office open, he should do what his predecessors did: pay for it out of his own administrative account. Better still, he should use the $400,000 to restore services that have been cut for some of the state’s most vulnerable residents.

It’s Official: Baker’s In

Harvard Pilgrim CEO Charlie Baker promised Boston Herald columnist Wayne Woodlief that he would announce sometime in July whether or not he would be a candidate for Governor in 2010. And true to his word, multiple sources have confirmed that Baker is indeed in the race and planning to open a campaign committee on July 28 as he attempts to gain the Republican nomination and unseat incumbent Deval Patrick.

According to the Boston Globe, Baker has already notified his staff at Harvard Pilgrim that his last day on the job will be July 17. In an internal memo, Baker cited the “terrible financial and operational strain” facing state and local government, and indicated he “can bring ideas, energy and leadership to the tasks that face state government in the years ahead.”

A source close to Baker told the Boston Herald that State Treasurer Tim Cahill’s announcement that he would be leaving the Democratic Party and switching to unenrolled status for a possible gubernatorial run did not factor into the timing of Baker’s announcement.

Senate Minority Leader Richard R. Tisei welcomed Baker’s entry into the race, telling the Globe that “Charlie is the perfect person to explain why we need to change directions” after two-and-a-half years of Democratic leadership under Deval Patrick.

Baker is expected to hold a press conference later this afternoon.

HAPPY FOURTH OF JULY

As Americans everywhere celebrate our nation's independence, Scaling the Hill would like to wish everyone a very Happy Fourth of July.

“This Feels Like 1990 All Over Again”

Wayne Woodlief has an interesting column in today’s Boston Herald about the upcoming 2010 gubernatorial election and Deval Patrick’s chances of being returned to the Corner Office for another four-year term.

With the governor’s approval ratings plummeting, and several potential challengers emerging, Senate Minority Leader Richard R. Tisei thinks it “feels like 1990 all over again”. That was the year, of course, that an embattled Democratic incumbent (Michael Dukakis) wisely decided not to seek re-election and the party’s nominee (John Silber) lost to a popular Republican candidate (Bill Weld), ushering in 16 years of GOP control of the Corner Office.

If you haven’t seen it yet, be sure to check out Woodlief’s thoughts on the “Recipe for GOP Rebirth” – a recipe that he says includes Harvard Pilgrim CEO Charlie Baker “in the mix”.

ON THE AIR: Senator Tarr to Appear on Fox25 Morning News Tomorrow

Assistant Senate Minority Leader Bruce E. Tarr will be appearing in-studio on tomorrow’s Fox 25 Morning News, along with former State Senator Warren Tolman, who now practices law in the Government and Real Estate Departments of Holland & Knight. The two will be answering questions posed by former State Treasurer Joe Malone covering such diverse topics as transparency in state spending, the budget, health care reform and elderly driver re-testing. The segment is scheduled to air live on Thursday at 7:15 a.m

Fallout Continues on Film Tax ‘Flip-Flop’

Governor Patrick’s decision to restore $20 million in funding for a controversial film tax credit is coming under further scrutiny. As the Boston Herald reported yesterday, Patrick signed the Fiscal Year 2010 budget on Monday without vetoing the section that reduced funding for the tax credit. He then proceeded to sign a supplemental budget that restored the very same funding that had been taken out of the budget.

Commonwealth Magazine Editor Bruce Mohl has an interesting piece posted on his magazine’s blog – CWUnbound – about the governor’s about-face on this issue. Mohl claims the governor “flip-flopped” due to fears that actor Tom Cruise might film his upcoming movie in Georgia instead of Massachusetts.

Regardless of the reasoning behind the governor’s decision, the fact remains that the taxpayers of the Commonwealth are about to get hit with over a billion dollars in new taxes and fees, while millionaires like Tom Cruise continue to enjoy a taxpayer-subsidized tax giveaway.

ON THE AIR: Senator Tarr Discusses Elderly Driver Re-testing with Michele McPhee

Assistant Senate Minority Leader Bruce E. Tarr was a guest on Michele McPhee’s show on WTKK radio last night to discuss pending legislation to re-test elderly drivers. In case you missed it, you can listen to the interview here.

More Misplaced Priorities: Taxpayers Lose Out to Hollywood $tar$

It looks like Hollywood stars will continue to get a year-round “tax holiday”, but our own Massachusetts taxpayers won’t be able to get even a weekend’s worth of tax relief this year.

During yesterday’s press conference marking the signing of the Fiscal Year 2010 state budget, Governor Patrick shot down the prospect of another Massachusetts sales tax holiday this summer. According to the State House News Service, “Patrick told reporters a sales tax holiday, which became somewhat of a summer tradition for retailers in recent years, was unlikely given the fiscal climate.”

But as the Boston Herald is reporting today, concerns about the current “fiscal climate” didn’t stop the Governor from giving a thumb’s up to restoring a controversial film tax credit that subsidizes wealthy Hollywood bigwigs.

So, let’s get this straight: even with more than a billion dollars in new taxes and fees included in the budget, the state can’t offer overburdened taxpayers a temporary tax reprieve, yet we can still roll out the red carpet for highly-paid Hollywood actors, directors and producers? This is just another example of the Governor’s misplaced priorities.

Patrick Polls Poorly

Governor Patrick, reportedly gearing up for a 2010 re-election campaign, can’t be too happy with the latest poll conducted by Rasmussen Reports, which places him in a dead heat with 2006 gubernatorial candidate Christy Mihos, and only five percentage points ahead of Harvard Pilgrim CEO Charlie Baker, who isn’t even an official candidate – at least not yet.

In a poll of 500 likely voters conducted on June 24, participants were asked to consider a hypothetical election run-off between Patrick and Mihos. In a head-to-head matchup, the poll showed that 41 percent would vote for Patrick but 40 percent would cast a ballot for Mihos. Ten percent said they would vote for “some other candidate” and 9 percent were “not sure”.

When matched against Baker, Patrick again was the choice of 41 percent of the participants, with Baker earning 36 percent of the vote. Although Baker did not secure as much support as Mihos, the numbers are not that far off from the margin of error of plus-or-minus 4.5 percent.

The poll also included questions on Patrick’s job performance, and asked voters to rank the favorable/unfavorable ratings of the three potential candidates.

When asked about Patrick’s job performance, only 11 percent said they “strongly approve” of the job he’s doing, while 31 percent said they “somewhat approve” of his performance. More than half of those polled, however, had a negative opinion of the governor’s work in the corner office, with 25 percent saying they “somewhat disapprove” of his job performance and another 32 percent saying they “strongly disapprove” of the work he’s done. Just 1 percent of respondents were undecided.

Patrick is also dealing with low favorability ratings. Although 31 percent of voters view him “somewhat favorably”, more than half (51 percent) view him in a negative light, including 27 percent who give him a “somewhat unfavorable” rating and 24 percent who give him a “very unfavorable” rating. Only 17 percent view him in a “very favorable” light, while 1 percent are undecided.

In contrast, both Mihos and Baker are seen in a more favorable light, although a number of voters are still undecided about the two. Mihos’s favorable/unfavorable rating is 46/35, while Baker’s is 37/27. Nineteen percent of voters are “not sure” how to rate Mihos, while 35 percent are “not sure” about Baker.

Senator Tarr Talks Taxes

Assistant Senate Minority Leader Bruce E. Tarr was interviewed by NECN reporter Scot Yount about the more than $1 billion in new taxes and fees that are included in the Fiscal Year 2010 state budget approved yesterday by Governor Patrick. Tarr expressed concerns that the tax increases – particularly the 25 percent sales tax increase due to take effect on August 1 – will make Massachusetts less competitive at a time when the state is struggling to create and retain the jobs that will be needed to help sustain an economic recovery. To see the NECN report, click here.

GOP Leaders: Patrick Just Doesn't Get It

House Minority Leader Bradley H. Jones, Jr. and Senate Minority Leader Richard R. Tisei issued the following statement in reaction to various components in Governor Patrick’s recently filed supplemental budget:

The ink isn’t even dry on the Fiscal Year 2010 budget, and already Governor Patrick is proving once again that not only are his priorities incredibly misplaced, but his words don’t match his actions.

Families and businesses across the Commonwealth are struggling, teachers and police are facing layoffs, but don’t worry, the Governor plans to restore funding to his Washington, D.C. office. In addition to wasting $400,000 of taxpayer money on this luxury, Governor Patrick also plans to renew a controversial tax credit that is used as an incentive to attract Hollywood filmmakers. This is just another example in the laundry list of misplaced priorities in the Governor’s agenda. He has no problem signing a dramatic 25% increase to the state’s sales tax which will not only harm hardworking families, but will also drive businesses out of the Commonwealth at the cost of thousands of jobs.

And just to add insult to injury, Governor Patrick has hinted that a gas tax may be “necessary” to continue funding essential services to the Bay State’s residents. The Republican Caucus offered hundreds of millions of dollars in cost savings this budget season, most of which were rejected by our Democratic colleagues. We will not allow the public to be fooled by all of the reform talk coming out of the corner office. Yes, some reforms have been accomplished, but we still have a long way to go.