Slowly but surely, states are beginning to realize that corporate income tax can do a lot more good for their citizens if its actually remaining in the state, and not being funnelled through some loophole or tax-avoidance scheme. Montana is the next on the list to attack the problem, after state Sen. Ron Erickson introduced Senate Bill 36 yesterday, which “is aimed at stopping efforts by large corporations that have found complex ways by setting up foreign offices to avoid or lower the amount of taxes they pay in this country.”
How did this legislation come about? Why, Wal-Mart, of course. In fact, Erickson passed out copies of a 2007 Wall Street Journal article to the Senate Taxation Committee, an article that detailed how Wal-Mart had opened an office in Florence, Italy, specifically for the purpose of evading taxes. According to the Journal, Wal-Mart’s office in Italy was its only operating unit of a real estate subsidiary that controls billions of dollars of its property in U.S. states and was able to avoid U.S. taxes.
Erickson said he shops at a market in Missoula on southwest Higgins Avenue owned by a man named Jim Edwards, whose store competes against Wal-Mart. “Jim Edwards does not have a back pocket in Florence, Italy,” Erickson said. “If we want to be fair to the Jim Edwardses of Missoula, we have to make sure everyone’s paying their fair share.”
We’ve documented Wal-Mart’s state tax avoidance attempts before, and closing the loophole in Montana appears would save the state about $2.5 million per year. It doesn’t sound like a huge sum, but then again Montana’s budget isn’t going to compare to California or Illinois or New York anyway. As the Wall Street Journal noted then:
The Illinois Department of Revenue objected to the Italian tax maneuver, demanding $26.4 million in back taxes, interest and penalties. Wal-Mart paid the amount in dispute and then sued the state for a refund, according to a complaint filed in May in Illinois Circuit Court in Springfield.
The Illinois case is ongoing.
Missoula senator seeks to raise corporate taxes by closing loopholes [Missoulian]
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Posted by Corey Himrod | Permalink
Adding to what we discussed might happen in West Virginia, with that state lowering its corporate income tax rate, here are a couple additional nuggets we’ve found for your reading pleasure.
First, in Kentucky, State Reps. Bill Farmer of Lexington and David Floyd of Bardstown are suggesting that now is the time to eliminate the state’s corporate and individual income taxes. Its a funny suggestion on its surface, since, well, lots of states are having a hard time paying for much of anything these days. But there is a method to the madness, and here it is:
The legislation drafted by Reps. Bill Farmer of Lexington and David Floyd of Bardstown would replace the income tax by spreading the sales tax to a host of services that are currently exempt, including plumbing, roofing and other contracting work, and some consulting work. Another huge chunk of change would roll into the state’s bank account by charging 5 percent tax on rent paid for commercial — but not residential — real estate space, according to the 66-page bill.
Since Wal-Mart rents a lot of its properties to...wait for it...itself, could this mean Wal-Mart could potentially be taxed on its own rental fees? Possible, but there would be one sure tax Wal-Mart would have to worry about - under the proposal, Kentucky would collect taxes on charges that stores such as Kroger and Wal-Mart impose on product makers to have special displays at the end of their aisles. The legislation in question is viewed as unlikely to pass this session, but even Democrats in Kentucky have admitted the proposals are something to consider.
House Republicans draft tax reform proposal [Lexington Herald-Leader]
In North Dakota, Wal-Mart is lobbying hard for a bill to repeal a law that requires, with few exceptions, pharmacies be owned at least 51 percent by pharmacists. A repeal of that law would of course open the door for Wal-Mart and other chain pharmacies to waltz right in and start peeling off local drug stores.
Pharmacists and others called “North Dakotans for Prescription Facts” want the law retained, saying it will kill small town pharmacies and hurt personalized service. “North Dakotans for Affordable Health Care,” funded in large part by Wal-Mart and Walgreen’s, wants the law repealed.
N.D. legislative session will have plenty of bread-and-butter issues [Grand Forks Herald]
Posted by Corey Himrod | Permalink
Come holiday season, what do you get the company that seemingly has everything? How about a settlement to its seemingly endless chain of wage and overtime suits.
We ring in the new year with this news, that Wal-Mart has chosen to settle a massive number of wage/hour and overtime class actions. The terms of the settlement could eventually cost Wal-Mart up to $640 million to settle 63 of the nearly 80 such lawsuits out there. So why, after years of fighting these suits tooth and nail (winning some while others have ended in rather large judgments against the company), has Wal-Mart finally decided to settle? At least one law professor quoted in the Wall Street Journal has an idea:
Paul M. Secunda, an associate professor at Marquette University Law School, suggested Wal-Mart wanted to settle the lawsuits not just to avoid potentially more costly defeats in the courtroom, but to resolve issues that might be used to argue for passage of the Employee Free Choice Act. The legislation, expected to be considered by Congress next year, is fiercely opposed by Wal-Mart because the company worries it will make it easier for workers to unionize. Secunda said: “This is part of their overall strategy to get their labor house in order, and compared to what unionization might cost them, I think they probably realized it was a small price to pay.”
A small price to pay indeed. Wal-Mart has prevailed in getting class actions such as these decertified more times than the company has lost, though when it has and Wal-Mart has gone to trial, the judgments in just a handful of cases have totalled over $300 million. Settling 63 for just over $10 million each might not be so bad, especially if it earns the company some good street cred. Could a settlement in Dukes v. Wal-Mart be next??
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Posted by Corey Himrod | Permalink
Just catching up on more stories from the holiday season. This from West Virginia - a whole gaggle of new tax laws will be taking effect in the new year are designed to save businesses money and create jobs? Sounds like there must be a catch, right?
According to State Tax Commissioner Christopher Morris, both the business franchise tax and the corporate net income tax rates are being lowered under the changes. In addition, businesses can get tax credits for creating jobs that are full-time, pay at least $32,000 and offer health benefits. Companies are limited in the number of created jobs they can can receive tax credits for, but every little bit helps, right? C’mon Wal-Mart...we know West Virginia is now a combined reporting state, so you can’t pull your little tax shenanigans there anymore, so why not create a few new full-time jobs, throw in some benefits, and save a little money in the process?
W.Va. Businesses Expected to Save Money Under New Tax Laws [WSAZ NewsChannel 3]
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Posted by Corey Himrod | Permalink
Check out this week’s issue of the Wal-Mart Watch Weekly Update for Elected Officials – a compilation of Wal-Mart news from across the country and beyond.
This week’s issue begins with a Bloomberg report of Wal-Mart being placed on a list of most controversial companies. Also named - the company responsible for producing melamine-tainted milk in China. The list includes companies criticized for producing negative impacts on communities, health, and the environment, and was based on a study by RepRisk, a consulting firm that analyzes companies’ exposure to controversial issues and news.
You’ll also find stories from BusinessWeek and the Financial Times on how corporate giants like Wal-Mart are gearing up to battle potential pro-labor legislation in 2009. With President-Elect Barack Obama and the Democrats taking over next year, retailers are bracing to fight the Employee Free Choice Act – or EFCA – which could make it easier to organize unions in the workplace.
In addition to EFCA, you’ll find stories on Wal-Mart and the economy. And from the legal front, read about a $19 million discrimination lawsuit filed against Wal-Mart and Pepsi in West Virginia. Plus, in the world of product safety, read more about questions raised by the controversial chemical BPA, as well how Wal-Mart has been selling lead-tainted face paint for kids…a no-no anytime, and especially around Halloween.
And finally, check out our “Stateside” and “Wal-Mart International” sections to find out what’s going on with Wal-Mart around the country and across the globe. Chicago city aldermen have a wish list for an Obama presidency; the fight continues over whether Wal-Mart can build near a Civil War battlefield in Virginia; and towns in California and Nevada deny Wal-Mart the ability to sell alcohol on its store shelves.
Wal-Mart Watch Weekly Update for Elected Officials [November 12, 2008]
Posted by Corey Himrod | Permalink
Check out this week’s issue of the Wal-Mart Watch Weekly Update for Elected Officials – a compilation of Wal-Mart news from across the country and beyond.
This week’s issue centers on a new website launched by Wal-Mart Watch which details the retailer’s political contributions, positions on specific legislation, and spending on lobbyists and industry trade groups. The website, Walton Influence, also includes similar information on the Walton family and the family’s related enterprises.
In addition, you’ll read about a number of legal issues, the most important of which could be affecting the health of millions of Americans. Bloomberg News and the San Francisco Chronicle, among others, are reporting on how tests of several of the best-selling brands of bottled water (including Wal-Mart and Sam’s Club private label brands) have been found to contain mixtures of at least 38 different pollutants, including bacteria, fertilizer, and industrial chemicals. These findings could result in a lawsuit against the retail giant.
And finally, check out our “Stateside” and “Wal-Mart International” sections to find out what’s going on with Wal-Mart around the country and across the globe. You’ll read about how Maryland’s closing of certain corporate tax loopholes has resulted in millions of dollars in increased state funds, and why employees in Illinois are protesting Wal-Mart’s electioneering activities.
Wal-Mart Watch Weekly Update for Elected Officials [October 16, 2008]
Posted by Corey Himrod | Permalink
In a press release distributed this morning, Wal-Mart has announced that it is “once again driving unnecessary health care costs out of the system and passing the savings along to its customers through the pharmacy aisles.”
How is it doing it this time? By offering exclusive-to-Wal-Mart diabetes management products for $9 each at all Wal-Mart pharmacies nationwide. That, might I say, is quite excellent actually. I myself don’t have - and don’t have immediate family members who have - diabetes. But I’ve known and worked with people who do, and one thing an individual with diabetes shouldn’t have to worry about is the cost of testing and treatment supplies, which I could imagine can get quite expensive.
No, the problem with this story isn’t in what Wal-Mart is announcing. It is, instead, the way in which Wal-Mart has treated its own employees who have diabetes. Helping the masses might seem a little nicer if the company treated its own diabetic employees with slightly more compassion and understanding.
The gold standard of what I’m talking about is the story of Stephen Orr. Orr worked as a pharmacist at a Nebraska Wal-Mart. Orr has Type 1 diabetes, a condition in which the body does not produce insulin, a hormone needed to convert sugar, starches and other food into the energy needed for daily life. As a result, Orr must administer insulin to himself several times each day. For a while, management allowed him to, you know, do the things he needed to do over the course of a day to stay alive...like actually take a lunch break. Eventually though, business and customer traffic forced Wal-Mart - instead of hiring an additional pharmacist - to inform Orr he could no longer take a break to eat and rest. In fact, he was told to eat behind the pharmacy counter if and when store traffic slowed. If you can’t guess what happened, I’ll tell you - Orr’s blood glucose levels dropped severely on multiple occasions, causing him to experience symptoms of hypoglycemia, which can include dizziness or lightheadedness, confusion, difficulty speaking, and feeling anxious or weak. Wal-Mart still refused to accommodate him, and his manager eventually fired him, explicitly telling him it was because of his diabetes.
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Posted by Corey Himrod | Permalink
The Associated Press recently released an examination of Wal-Mart’s lobbying disclosure form for last quarter. Over a three month span, Wal-Mart lobbying expenditures reached $1.4 million, fighting legislation relevant to labor issues, cargo security, and health care. Wal-Mart brazenly fought against the Employee Free Choice Act – a bill which would give employees more leverage in the quest for fair wages and affordable health care. Even more egregious may be its combativeness towards the ADA Restoration Act – a pending piece of legislation which would clarify the rights of peoples with disabilities. See the full article from the Associated Press:
Wal-Mart spent $1.4M lobbying government in 2Q [Associated Press via MSN Money]
Wal-Mart Stores Inc., the world’s largest retailer, spent nearly $1.4 million in the second quarter lobbying the federal government on union matters, cargo security and other issues, according to a recent disclosure form.
The Bentonville, Ark.-based company, which has 1.3 million domestic employees, lobbied on the Employee Retirement Income Security Act. Wal-Mart and the Retail Industry Leaders Association mounted a successful legal challenge to a Maryland law that required companies with more than 10,000 workers to devote at least 8 percent of its payroll to paying for employee health insurance. The judge ruled that ERISA pre-empted the state requirements.
The Employee Choice Act, over which Wal-Mart has drawn criticism for having politically partisan sessions with employees, was also listed, as was the Family Medical Leave Act and the American with Disabilities Restoration Act, according to the form filed July 21 with the House clerk’s office.
Wal-Mart Vice President of Corporate Affairs Raymond Bracy is listed on the reporting form as the company’s lobbyist. The form shows he also lobbied regarding a variety of tax issues and on legislation regarding Chinese imports and China’s currency.
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Posted by Tony Calero | Permalink
Iowa City Council weighs new Wal-Mart store [The Gazette (Iowa)]
The battle over Wal-Mart’s desired expansion in Iowa City will again come before the City Council.
The council will hold a public hearing Monday on the retail giant’s proposal to build a 180,000-square-foot supercenter on Highway 1 on a site that includes the current Wal-Mart.
The land has a conditional zoning agreement that says the property must be developed the way it exists right now. The council must OK an amendment to that agreement.
After some initial back and forth between Wal-Mart and the city on the store’s proposed design, the Planning and Zoning Commission voted 4-1 last month to recommend the council approve the amendment.
This is not the first time Wal-Mart has sought to expand in Iowa City. Its proposal in 2005 to build a 214,000-square-foot store was met with opposition by some residents who claimed the company ruins local businesses and treats its employees poorly.
Two lawsuits were filed to try to stop the supercenter from being built.
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Posted by Tony Calero | Permalink
Recall effort may be called off [Muskego Now (Wis.)]
Efforts to recall 7th District Alderman Noah Fiedler seem to be losing steam. The decision to give up may be made yet this week, Janet Napientek of the Muskego First group said Aug. 4.
Debra Prusinski, who filed the request for the recall, said she hasn’t been out seeking signatures on the petition in the past week and continued efforts are up to Napientek.
“I don’t think the recall effort will really do much good,” Prusinski said.
The deadline to turn in the papers with the required 426 signatures is Aug. 26. Napientek said this week she would take the next few days to think about whether or not she wants to continue the recall. She has 117 signatures on the petition and thought Prusinski had a maximum of about 50.
The recall was sparked by Fiedler’s Plan Commission vote in favor of approving the new Wal-Mart Supercenter.
Prusinski said in a July 31 phone call she is unhappy with the press coverage of the recall efforts. Fiedler questioned Prusinski’s 7th District residency and if she could legally file for the recall.
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Posted by Tony Calero | Permalink
Check out this week’s issue of the Wal-Mart Watch Weekly Update for Elected Officials – a compilation of Wal-Mart news from across the country and beyond.
This week’s issue focuses on the big story of the week - Wal-Mart’s efforts to mobilize its managers across the country to warn of a Democratic win in November. The company has been holding mandatory meetings for its store managers and department supervisors (possibly in violation of state and federal election law), who are being warned that if Democrats win in November it could lead to potential store unionization. The meetings focus on a piece of proposed legislation called the Employee Free Choice Act, which could make it easier for stores to unionize if it’s the wish of a simple majority of store employees. Read all the major stories on Wal-Mart’s efforts, plus reaction from Wal-Mart Watch Executive Director David Nassar.
Beyond the possible election law violations, the Washington Post and Chicago Tribune report on new toy safety legislation making its way through Congress. In addition, more legal problems for Wal-Mart - the first Salmonella-related lawsuit has been filed, and Wal-Mart is the defendant. Also, a new story in the Arkansas Business Journal describes how Wal-Mart knew of the existence of labor violations prior to the filing of the recent wage/hour class actions.
And finally, check out our “Stateside” and “Wal-Mart International” sections to find out what’s going on with Wal-Mart around the country and across the globe.
Wal-Mart Watch Weekly Update for Elected Officials
Posted by Corey Himrod | Permalink
The blogosphere has come out in full force in response to today’s Wall Street Journal story on Wal-Mart’s unconscionable, intimidating behavior towards its workers. Comments centered on both the egregious nature of Wal-Mart’s overt political posturing, as well as their fierce anti-union rhetoric. Following is a few of the insightful commentaries set forth by bloggers:
Wal-Mart to Employees: Don’t Vote for Democrats [AlterNet]
There’s a stunning story on the front page of today’s Wall Street Journal about how Wal-Mart is freaking out over the possibility of a Democratic win in the fall. So much so, in fact, that they’re calling mandatory propaganda meetings across the nation in which they’re indoctrinating workers about the alleged dangers of a Democratic takeover.
Wal-Mart vs. Their Workers [Political Animal]
This is par for the course. Few companies are as rabidly anti-union as Walmart, and there was never any doubt where their sympathies lie on this issue. They have a habit of firing workers who try to organize their stores, closing down stores that vote to organize anyway, and outsourcing entire departments when multiple stores vote to organize.
Why Are Democrats Taking Money From Wal-Mart? [Daily Kos]
To cut to the chase, Wal-Mart’s PAC spending is aimed at one thing: to make sure EFCA does not pass and, if it does pass, to make sure that the bill that reaches the president’s desk will be weakened (which, by the way, is what happened to labor law reform in the 1970s).
Fearing unions, Wal-Mart tells employees ‘how to vote’ [Carpetbagger Report]
At its core, these election-year efforts are targeting the Employee Free Choice Act, championed by unions and most Democratic lawmakers, which would likely boost union membership through a “card check” system.
Wal-Mart Warns Store Managers Of Democratic Party Win [The Moderate Voice]
The likely impact? It’ll become a big story on progressive talk radio (an increasingly hard-to-find entity in broadcasting) and most likely a huge issue on progressive blogs. And although Wal-Mart is unlikely to be seriously hurt by it, some who don’t want to see the GOP in power will decide their money might better be spent visiting a local Target store.
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Posted by Tony Calero | Permalink
Check out this week’s issue of the Wal-Mart Watch Weekly Update for Elected Officials – a compilation of Wal-Mart news from across the country and beyond.
This week’s issue focuses on the shortfalls facing state budgets across the country, and how Wal-Mart’s schemes to avoid state taxes have exacerbated those budget problems. You’ll be able to download our most recent tax report entitled: One Company’s Plan to – Save Money, Live Better: Wal-Mart’s Tax Avoidance Schemes. In addition, you’ll be able to download our most recent edition of the Wal-Mart Watch: In Depth newsletter, entitled Wal-Mart’s Great Tax Dodge.
Beyond the tax reports, you’ll: learn how one likely New York mayoral candidate plans to keep Wal-Mart out of New York City; read more about Wal-Mart’s lawsuit involving Adidas plus the lawsuit concerning the company’s 401(k) plan; and, find out how Wal-Mart’s seaports in Los Angeles and Long Beach are in fact the largest polluters in Southern California.
And finally, check out our “Stateside” and “Wal-Mart International” sections to find out what’s going on with Wal-Mart around the country and across the globe.
Wal-Mart Watch Weekly Update for Elected Officials
Posted by Corey Himrod | Permalink
City Council to consider “super store” ban [Contra Costa Times (Calif.)]
The proposal for a flat-out ban on having Kmart, Wal-Mart or other so-called “Super Stores” in Alameda now is set to go before the City Council after bouncing from the Planning Board to the Economic Development Commission.
The idea behind the ban would be to protect local merchants while sending a message to large retailers — which have come under fire for offering workers low wages and few benefits — that the city wants to promote good jobs.
“We don’t have any real prospect of dealing with a Wal-Mart or something like that,” Mayor Beverly Johnson said Thursday. “But I do think it’s good that we have something in place that will set out our policy.”
The proposal calls for amending the Alameda Municipal Code so that a retail store more than 90,000 square feet in size and with more than 10 percent of its floor dedicated to the sale of non-taxable items could not open here.
Oakland, Dublin, Martinez and other cities have similar bans.
The council is expected to consider the issue Aug. 19.
The Planning Board rejected the amendment when it looked at the proposal in June, maintaining the ban could send a message that the city frowns on business and saying officials should instead consider stores on a case-by-case basis.
The board voted unanimously to affirm a current policy that allows the city to nix any store larger than 30,000 square feet if officials think it would hurt the community.
The Economic Development Commission also rejected the ban earlier this month.
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Posted by Tony Calero | Permalink
Wal-Mart extends land agreement [Spooner Advocate (Wisc.)]
Wal-Mart was granted yet more land sale extensions, its seventh and eighth, on Tuesday, July 15, by the Washburn County Board of Supervisors, extending by a year the deadline for purchasing 35 acres of county land for a proposed 100,000-square-foot Supercenter at the northwest corner of the Cty. Hwy. H and Hwy. 53 intersection in Spooner.
The Fortune 100 retailer, the largest retailer in the world, will pay $30,000 for each of the two six-month extensions. Wal-Mart’s current agreement with the county will expire Aug. 12.
Wal-Mart has asked for the extensions to give it enough time to finalize a developers agreement with the city of Spooner and to acquire all the permits it needs from the city, Wisconsin Department of Transportation (DOT), and Wisconsin Department of Natural Resources (DNR). A broker working with Wal-Mart said the permits from the DOT could take another three to six months to obtain.
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Posted by Tony Calero | Permalink
City councilman wants voters’ say on Wal-Mart [San Luis Obispo Tribune (Calif.)]
An Atascadero councilman will ask the council Tuesday to consider putting a measure on the November ballot asking residents for their recommendation on whether to approve a proposed Wal-Mart Supercenter.
The controversial project proposed for the north end of town at Del Rio Road and El Camino Real has divided the community for more than two years.
“It is time we ask the question,” Councilman Jerry Clay said. “It has been over two years, and the public is well-educated and capable of making a decision on this.”
Under Clay’s pitch, the measure would simply ask residents their opinion. The City Council would make the decision on the project.
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Posted by Joel Nezianya | Permalink
Wal-Mart to talk Northgate Plaza plans [Greece Post via MPNnow.com]
Want to know more about Wal-Mart Stores’ plans for a supercenter at Northgate Plaza?
The company is holding a public session with engineers, designers and company representatives from 6 to 8 p.m. Tuesday, June 24. The meeting will be held at the Greece Marriott, 1890 W. Ridge Road, at the corner of Fetzner Road and Ridge. Refreshments will be offered.
The store is at the center of Widewaters Group’s plans for the plaza, which it manages. The project calls for a 146,000-square-foot general merchandise store, garden center and grocery, a new, free-standing McDonald’s restaurant and drive-through and two free-standing retail buildings.
Work at the plaza, which opened in the 1950s, has yet to begun. The Planning and Zoning boards’ approval of the project is being legally challenged for the second time by a group of residents who are against it.
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Posted by Joel Nezianya | Permalink
Village board approves new Wal-Mart [The Courier News (Ill.)]
Wal-Mart is coming to town.
The village board voted unanimously Monday night for the special use permits and variations which would allow the retailer to build a 186,000-square-foot super store on 27.5 acres off Huntley Road just north of Spring Hill Mall.
While residents have attended several public hearings and a special board committee of the whole meeting to protest the store and its location, there is little the village could do to prevent the retailer from locating here, said board member Norm Osth.
In fact, he said, West Dundee is getting a better building than the one originally proposed by the big-box retailer, and is the right thing for the village.
“If we said no, the reality is that Wal-Mart could and would apply for and would be issued building permits that comply with our current (zoning) codes,” Osth said in a prepared statement. “Should the permits be denied, the probable results would be a lawsuit that West Dundee would undoubtably lose.”
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Posted by Joel Nezianya | Permalink
Wal-Mart OMB hearing adjourned until August [The Lindsay Post (Canada)]
The wait will continue for those eager to find out if a development including Wal-Mart and Home Depot will be allowed to set up shop in west-end Lindsay.
A hearing in Toronto last week was not competed and adjourned until August, said City of Kawartha Lakes director of development services Richard Danziger.
August 6, 7, 8, 18 and 19 have been set aside for the completion of the hearing which is scheduled to take place in the Victoria Room at City Hall on Francis Street in Lindsay.
During the last term of council, the City of Kawartha Lakes adopted an official plan amendment and a zoning by-law amendment to allow Wal-Mart as part of a 310,000 sq.-foot development at the corner of Highway 35 and Colborne Street West in Lindsay to be built by Mason Homes.
But with appeals filed to both the city applications, the fate of the development rests in the hands of the OMB.
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Posted by Joel Nezianya | Permalink
Wal-Mart SuperCenter now back on the table [New Age Examiner (Penn.)]
Both the Wyoming County Planning Office, as well as Eaton Township supervisors have begun reviewing documents for a proposed Wal-Mart SuperCenter on 59 acres of land off Route 29 next to Skyhaven Airport.
County planner Paul Weilage says the planning commission is expected to review the documents at its June 18 meeting.
The retail giant is in a purchase agreement to buy land from Select Sires of Plain City, Ohio, Select Sires Chief Financial Officer Chris England said Thursday.
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Posted by Joel Nezianya | Permalink
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