BOSTON — The Capitol Hill debate over how to create jobs has come to Beacon Hill, with local Republican lawmakers backing their party's philosophy that cuts in taxes and regulations are the best ways to get businesses to stay and grow in Massachusetts.
Republican legislators unveiled their jobs plan at a Statehouse news conference last week, detailing a series of proposals aimed at cutting business costs in taxes, fees, energy and health care.
"We need to look at the way businesses are taxed here," state Rep. Bradford Hill, R-Ipswich, said after the Republican caucus unveiled its 25-bill proposal of tax cuts and fee reductions.
Senate Minority Leader Bruce Tarr, R-Gloucester, speaking at the Wednesday news conference, said that although the Massachusetts economy has shown signs of improvement, more action was needed to secure "a path toward sustainable economic growth."
"This is a comprehensive package that will help people looking for a job and for employers hoping to move from an uncertain economic time to one of prosperity and stability," he said.
The proposal to both the House and Senate includes five packages of policy priorities and 25 bills the sponsors say will simplify or eliminate corporate fees and taxes, such as the $456-a-year minimum corporate income tax payment and a $500 incorporation fee. Republicans say this fee elimination would encourage business creation.
"They're 'fee-ed' to death," Hill said.
The Republican plan would also lower the rates for unemployment insurance for companies whose employees rarely use the state's Unemployment Insurance Trust Fund, while increasing the rates for companies whose layoffs have cost the state more. Hill said Massachusetts has one of the highest rates in the nation.
Hill said another important issue was reducing the commercial vehicle registration fee to entice business owners to register their vehicles in Massachusetts rather than other states.
To do that, the Republicans would cap fee increases for commercial vehicle registrations at 2.5 percent a year and offer a 10 percent discount to businesses registering five or more commercial units.
A major section of the GOP plan would spare smaller businesses from a mandate to provide health insurance to employees.
"Massachusetts employers are required to insure out-of-state residents if they are working in their businesses. That isn't what we ever intended, nor is it what we should intend," Tarr said. "We are suggesting that the fair share contribution requirement not include out-of-state employees."
Tarr also said the proposal would increase the full-time equivalent threshold, which requires businesses employing 10 or more workers to give employees health insurance. Tarr said the proposal brings the threshold to 50 workers.
"Here's an incentive to small businesses to grow and hire more employees," Tarr said. "When they get to 50 workers, then we'll impose the requirements of mandated health care coverage."
The legislation, which Tarr said he intended to file in the Senate in two weeks, also calls for better coordination among community colleges and vocational schools. The plan also requires competitive bidding for renewable energy contracts to bring down the cost of electricity.
The Republican effort faces a difficult task of gathering support from within the Democratic majority in the House and Senate. Several Democrats, including Sen. James Eldridge, D-Acton, have criticized the Republican approach of cutting taxes on businesses.
But one local Democrat is pleased with some of the legislation that the Republicans are proposing.
Rep. Lori Ehrlich, D-Marblehead, said that she hasn't seen the whole proposal, but she welcomes the legislation about fees and taxes.
"They say that imitation is the sincerest form of flattery," Ehrlich said. "I have three bills that address minimum corporate filing fees for small businesses. I'm delighted the bills have the endorsement of the Republican caucus."
Police: Man Arrested in Etan Patz Disappearance
Hurricane Forecast: 15 Named Storms Expected
NYC Protests: the Revolution Will Be Scripted
Chicago U.S. Attorney Fitzgerald Resigns
Neighbors of Etan Patz's Suspect: It's Shocking
Search Intensifies for Missing Louisiana Woman
Bloomberg: Man Implicates Self in Etan Patz Case
NYPD: Person Implicated in Etan Patz Death
Raw Video: Fire on Nuke-powered Sub in Maine
Illegal Burn Suspected in Nevada Fire
Obama: 'We've Got More Work to Do'
Astrologers Predict Outcome of Presidential Race
Gulf Fishermen Reel From Seafood Troubles
Stuntman Makes Skydive Without Parachute in UK
FAMU Bandmates: Victim Volunteered to Be Hazed
Raw Video: Bride Who Faked Cancer Released
Raw Video: Tornado Appears During Wedding
Raw Video: Passed Out Man Robbed
Inquiry Hears Wider Secret Service Misbehavior
HP to Cut 27,000 Jobs, Save Up to $3.5B
