The Massachusetts Office for Refugees and Immigrants last week launched the Financial Literacy for Newcomers Program

Business organizations that have resisted new or higher taxes to funnel more money into public transportation are hitting back at the advocacy group Raise Up Massachusetts and its call for an “economically progressive” revenue package, delivering a one-two punch as this week began.

The left-hand jab came from the Massachusetts High Technology Council, which took aim Sunday afternoon at Raise Up’s “increasingly aggressive stance” in favor of raising taxes on businesses, and the Associated Industries of Massachusetts followed up Monday morning with a right cross in the form of an open letter from President and CEO John Regan.

“Thousands of hard-working Massachusetts employers, from software startups to corner grocery stores, spend every day paying their fair share to the commonwealth by providing economic opportunity and prosperity from Boston to the Berkshires,” Regan wrote. “These employers understand the need to address intractable issues such as transportation and education, but they also understand that the recent examples provided by Connecticut and New Jersey prove that you cannot solve these problems by punitively taxing certain businesses or individuals.”

The business groups’ latest volley came in response to Raise Up’s own open letter to lawmakers last week in which the organization that has been behind the proposed 4 percent surtax on income over $1 million called on businesses to contribute more towards public transit and education. Meanwhile, state lawmakers are gearing up to debate a broad transportation financing package this fall, the details of which have not been released.

“Large, profitable corporations benefit greatly from a well-educated workforce and a reliable transportation system, and it’s time for them to contribute themselves to fund those investments, not just ask the rest of us to pay more,” Raise Up Massachusetts wrote in its letter. “The Massachusetts corporate community needs to explain just how businesses plan to do their part to fund our transportation and public education systems.”

Business groups have increasingly decried the Boston area’s public transportation woes as a hindrance to economic growth. Traffic and congestion on the roads make for long and frustrating commutes by car, and the unpredictable nature of public transportation frequently makes workers late to their jobs.

In a public policy update newsletter to supporters on Sunday, the High Tech Council dismissed Raise Up’s letter and its latest lobbying efforts by reiterating its long-held position that Massachusetts does not have a revenue problem thanks to tax collections rising faster than the rate of inflation for the last 10 years.

The differences in opinion come into play when discussing where that additional money should come from, Farnitano said. He said many business groups agree that more revenue is needed, but argue it should come in the form of higher user fees paid on each ride with a service like Lyft or Uber. Raise Up is “concerned about the impact of user fees on working people,” Farnitano said, and wants to have “a conversation” about higher corporate taxes.

If the High Tech Council was playing bad cop with its pointed language, AIM played the part of good cop Monday. Regan said he believes Raise Up’s letter last week was “a serious statement of position and concern, rather than a political stunt” because he got to know the organization well during the time AIM and Raise Up worked together to reach a compromise on a paid family and medical leave program.

“We spent too many hours sitting across the bargaining table from one another for me to question the fact that you believe that businesses do not pay their fair share,” Regan wrote. He later added, “I am delighted to engage in serious conversations with Raise Up and any other groups seeking to ensure the economic future of Massachusetts.”

Raise Up disagrees with AIM on many things, but the two organizations have worked together successfully in the past and will endeavor to do the same on this issue, Farnitano said.

Biz Groups Spar with Progressives as Transit Tax Debate Looms

by State House News Service time to read: 3 min
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