Lawmakers Hear Competing Views on Bill to Capture Offshore Profits; Supporters Say It Could Raise ~$400M

The Joint Committee on Revenue heard several hours of testimony on an act to combat offshore tax avoidance and proposals to increase the portion of global intangible low-taxed income (GILTI) included in Massachusetts corporate taxable income.

Supporters said the change would recover substantial revenue that could shore up education, food-assistance and other state programs, while opponents said some draft language — notably a proposed “tax-haven blacklist” — would unfairly reach legitimate foreign subsidiaries and risk double taxation.

Advocates emphasized revenue and service impacts. Don Griswold, who said he now works at the Center on Budget and Policy Priorities, described how multinational firms move intangible assets offshore to shift profits and said federal law “claws back 50 of those shifted profits” while Massachusetts currently recovers only 5 percent. “The bill in front of you remedies that by restoring the 50% clawback of GILTI,” Griswold said. Several witnesses, including policy analysts and education and labor groups, cited an estimated $400,000,000 in potential annual revenue for the Commonwealth if the state increases its GILTI inclusion.

Keith Michon, president of the…