Following is adapted from press release issued by Neighbor to Neighbor, which describes its mission as "Organizing for Working Families & Grassroots Democracy":

In the midst of a coming revenue crisis, the Speaker of the House has announced he will push measures to close corporate tax loopholes alongside a drastic cut to the business tax rate from 9.4 percent to 7 percent.

Speaker DiMasi's announcement follows Gov. Deval Patrick's proposal two weeks ago in which the governor proposed instituting the same measures to close corporate tax loopholes paired with a much smaller and more gradual reduction in the business tax rate.

Members of Neighbor to Neighbor Massachusetts (N2N-MA) applaud DiMasi's move to raise revenue by closing corporate tax loopholes, but they are decrying the proposed tax giveaway to big business.

"It is a huge mistake to take revenue raised from closing corporate loopholes, and then turn around and give it away in tax breaks to big business. We are facing hundreds of millions of dollars in cuts to essential social programs, and we are trying to sustain historic health care reform. Rather than give huge tax breaks to a few, we should invest in our economy and create tax fairness for all," commented Erin O'Leary, a campaign organizer for N2N-MA.

The measures to close corporate tax loopholes include "Combined Reporting" and "Check the Box." Combined Reporting would stop businesses from shifting income to out-of-state subsidiaries to avoid paying state taxes. "Check the Box" would prevent corporations from lowering their tax burdens by claiming one status on their state tax returns and another status on their federal returns.

"We applaud DiMasi for closing two of the largest corporate tax loopholes that have been bleeding badly needed revenue from the state budget for years. But it is unconscionable to propose a tax giveaway to corporations while working families continue to struggle. We need to invest in education, health care and the infrastructure that keeps our economy strong," added Lynn Norris, a Neighbor to Neighbor member from Worcester.

Carl Nilsson, N2N-MA's campaigns director, cited research by the Massachusetts Budget and Policy Center, which in a January 2008 report made the following points:

r "As the data show, when overall business taxes and more meaningful time periods are examined, two trends are clear: Overall business taxes in Massachusetts are lower than business taxes in most states, and business tax levels fluctuate with economic cycles, but have trended down."

r "When all business taxes are examined together, Massachusetts business taxes are the 40th highest in the nation."

"Closing corporate tax loopholes — which would generate $290 million in this fiscal year alone — should be a long-term solution to how we pay for government. But DiMasi's proposal turns it into a short-term fix," according to Nilsson.