Wal-Mart Attempts To Keep Corporate Tax Loophole In Massachusetts

Sprawl-Busters founder Al Norman broke this story on the Huffington Post over the weekend. Now, the Boston Herald examines Wal-Mart’s attempts to prevent Massachusetts from closing the tax loopholes the company is currently disputing in North Carolina. The company’s lobbying efforts show that Wal-Mart isn’t satisfied to just abide by the law: it takes an active role in shaping it. This is a big part of why some consider Wal-Mart to have an unfair advantage. If small businesses had even a fraction of the lobbying power Wal-Mart commands, the American economy would be much, much different.

Wal-Mart ups lobbying [Boston Herald]

Wal-Mart, while pushing to open more stores in Massachusetts, is also pumping more money into Beacon Hill lobbying.

The nation’s largest retailer has increased its spending on lobbyists in the state nearly five-fold since 2006, when it spent $43,220.

Wal-Mart forked over $208,678 to a pair of firms last year, state records show.

The retailer’s State House drive comes as Gov. Deval Patrick pushes plans to plug corporate “tax loopholes” that allow companies to avoid some local taxes by shipping income out of state.

Wal-Mart finds itself at the center of that debate. The chain has stores across the country paying rent to a separate real estate investment trust controlled by company executives, The Wall Street Journal has reported.

The practice, and the company’s lobbying expenditures, have drawn fire from one of Wal-Mart’s top critics, Greenfield-based anti-sprawl campaigner Al Norman. The activist has been sparring with Wal-Mart for years over the retailer’s drive to expand in Massachusetts, where it now has 48 stores.

“This is a major loophole Wal-Mart doesn’t want closed,” said Norman, founder of Sprawl-Busters.

However, a Wal-Mart executive argued against reading too much into its lobbying expenditures.

“Wal-Mart has not lobbied against the governor’s tax proposal nor does Wal-Mart have any plans to do so,” said Chris Buchanan, the retailer’s local public affairs manager, adding that Wal-Mart . . . “continues to monitor” various proposals and “follow the legislative process.”

But Norman contends Wal-Mart’s State House crew is listed in public records as having lobbied on the Patrick legislation.

“To suggest they are just watching it is absurd,” Norman said. “They are hired to kill bills, not to monitor them.”’

The company has previously claimed it pays more than $18 million in state and local taxes in Massachusetts.

Meanwhile, the giant retailer has put together a significant lobbying team as it pushes to ensure its voice is heard on Beacon Hill.

Wal-Mart has signed up at least two major lobbying firms, Bay State Strategies and Johnson Haley LLP, state records show. Separately, it has a public affairs manager who is registered to lobby lawmakers.

Lobbyists hired by Wal-Mart also weighed in on a bill that would prevent big box stores from selling cheap gas and on other legislation related to electronic identity theft and private check-cashing services, according to a review of state records by Norman’s group.

Posted by Alex Goldschmidt on Wednesday, February 06, 2008

Click Here for a Printer-Friendly Version