these fees increases as a tax increase in disguise after having promised he would not raise taxes. Romney said that the fees were distinct from taxes because fees were charged for particular services provided whereas taxes were assessed more broadly, without expectation of any specific services — although critics noted that this explanation applied to only some of the fees Romney proposed. Business tax collection increases Having vowed not to raise taxes, Romney found he could not completely close the budget deficits by cutting spending and raising fees alone. He sought additional revenue by pursuing changes in the business tax code to prevent businesses from evading payment of taxes. Businesses called these changes tax increases, but Romney defended them as the elimination of "loopholes." Examples of specific changes and 'loophole' closures included blocking corporations from transferring intellectual property assets to shell companies in states with lower corporate tax rates, preventing banks and some corporations from avoiding taxes through paper restructurings, eliminating tax breaks for direct mail advertising, and taxing sales of software downloaded over the internet (which had previously gone untaxed) the same as identical software purchased in brick-and-mortar stores. The Romney administration even sought an exemption to avoid having to comply with a federal law passed in 2004 that mandated that states like Massachusetts lower their corporate tax rates. Romney's fee increases generated an estimated $350–375 million per year in additional revenue for the state, and the business tax "loophole closures" brought in another $350–375 million per year. Attempts to cut taxes The additional revenue from the tax increase that had been enacted prior to Romney's taking office (and which Romney had opposed during his campaign for the governorship) reduced the deficit, previously projected to be $3 billion, by $1.3 billion. Unanticipated federal funds reduced the budget gap further still; and in combination with funding cuts, fee increases, collection of more business tax revenue, and reliance on funds in the state's "rainy day fund" (more formally known as the Stabilization Fund), Romney and the legislature were able to balance the 2004 budget. Reflecting on his administration's response to the fiscal crisis, Romney would declare, "We have successfully closed the largest deficit in our state's history without raising taxes." Some have called that statement disingenuous, citing the large increases in fees and business tax revenues Romney had produced, as well as the increases in fees and taxes levied by local