'Tis Pity He's a Whore: Rep. Dan Bosely Shills for Corporations?

We shall have time

To talk at large of all:

Of one so young, so rich in nature's store,

Who could not say, 'TIS PITY HE'S A WHORE?

--With apologies to John Ford

It's one of the oldest tricks in legislation: the poison pill. An unacceptable amendment or provision tacked on to a bill in hopes of killing it. Whether Rep. Dan Bosley was trying to kill the governor's bill to close corporate tax loopholes or just offset any losses businesses might incur due to the new legislation remains a half-open question. There was no time for legislators to study the amendment and it was passed by voice vote, so no one could trace support back to individual legislators. Either way, Bosley threw a monkey wrench into corporate tax reform by tacking a highly technical amendment to the bill at the last minute. The Globe reports:

Governor Deval Patrick's quest to tighten corporate tax laws and reap hundreds of millions of dollars in new revenue might be undermined by a last-minute amendment providing new offshore tax breaks that was tacked onto the legislation by the House, according to state officials.

The complex amendment was backed by the House leadership and approved with little debate during mid-evening voting two weeks ago as representatives were adopting the overall tax package. Several lawmakers said they were unaware of the details of the provision, which was sought by the state's largest business lobbying group.

The provision would permit large corporations to avoid up to $200 million in state taxes a year if they maintain large portions of their business operations overseas, according to an estimate by the state Department of Revenue. The tax-shelter strategy has proved controversial in other states.

Administration officials say the maneuver could essentially make a wash of the revenue raised by corporate tax reform, a cornerstone of Patrick's agenda that was expected to bring in $217 million in the first six months of 2009.

"It would allow companies to shift money overseas and avoid taxes in Massachusetts," Navjeet K. Bal, the state's revenue commissioner, said in an interview yesterday. "This is a real concern for us."

The offshore tax break still must be considered by the Senate, along with the rest of the tax bill, before reaching Patrick's desk. Through a spokesman, Patrick said the administration will lobby senators to change the plan.

"We look forward to continuing to work with the House and the Senate to craft a final loopholes plan that will ensure tax fairness and provide much needed revenue," said the governor's spokesman, Kyle Sullivan.

The state Department of Revenue is not identifying companies that could benefit from the provision, but it points to a lawsuit by Illinois against Wal-Mart and other large corporations that have employed similar offshore tax shelter strategies.

When asked about the DOR's finding, Bosely responded:

"I just don't trust their figures," Bosley said of the department. "It's a ridiculous estimate. They're just bad at numbers."

The amendment was sought by the Associated Industries of Massachusetts, according to officials at the organization, which advocates on behalf of the state's business community.

Methinks he doth protest too much.

--Mb