A top aide to former Senate President Thomas F. Birmingham is leading the
charge on Beacon Hill for higher taxes despite a state law limiting lobbying
by ex-state employees....
As a former legislative employee, Berger is required to take a yearlong "cooling
off" period from promoting, opposing or influencing legislation.
But Berger has been back on Beacon Hill in recent weeks, meeting with aides to
House Speaker Thomas M. Finneran and Senate President Robert E. Travaglini.
And he is scheduled to talk to lawmakers next week about the state budget during a forum sponsored by
Finneran and liberal Democrats in the House....
In general, [Secretary of State William] Galvin said, "if you accept money to try
to influence public policy, you need to register as a lobbyist." Galvin added that
someone who is being paid to meet with legislators or their aides to talk about
current public policy, "is most likely a lobbyist or at least acting like one." ...
"What I've been doing, A, is not lobbying and, B, to extent that it is ..." Berger
said...
The Boston Herald
Mar. 11, 2003
Birmingham former aide stretches lobby law
Budget Forum Date - Correction: A budget forum organized by the Progressive
Legislators Group and House Speaker Thomas Finneran will occur at 1 pm Tuesday, March 18 in Room A-2. Noah Berger of the
Massachusetts Center for Budget & Policy and Michael Widmer of the Massachusetts Taxpayers
Foundation will be the featured speakers at the forum on the fiscal realities of
the state budget. The News Service incorrectly reported the date of the forum
in Friday's Advances.
State House News Service
Correction - Mar. 10, 2003
A new law, shepherded through the Legislature by Gov. Mitt Romney as part
of a wider budget-cutting bill, allows the state to recapture $140 million in
tax revenue, and in the process close the loophole, in which banks created real
estate investment trusts to reduce what they owe....
State officials say there are between 50 and 60
REITs. State Street Corp., which could be hardest hit by the new law, said last week it would reduce its
earnings by $25 million. Smaller banks would also be affected....
Business groups fear the new law could resurrect the
state's "taxachusetts" nickname.
Associated Press
Tuesday, March 11, 2003
Banks to challenge state's bid to close 'loophole'
Chip Ford's CLT Commentary
Noah Berger, Jimmy St. George's recent replacement at TEAM
(Tax Everything And More) -- which also recently disguised itself with a name change to the "Massachusetts
Budget and Policy Center" - isn't a lobbyist for higher taxes and doesn't
need to be registered as one, he asserts. "What I've been doing, A, is not lobbying and, B, to extent
that it is, it is well under the 50-hour limit."
What? What he's been doing isn't lobbying, "but to the extent that it is..."? The first
question is, is it lobbying or isn't it -- or does that depend on what the definition of "is"
is?
And his response doesn't address the fact that, as a former
legislative aide to former senate President Tom Birmingham, he is legally prohibited from lobbying whatsoever for a
year ... regardless of the "extent."
Aren't laws supposed to apply to everyone equally?
Noah Berger is simply following in the long tradition of
Massachusetts Taxpayers Foundation president Michael Widmer. MTF, as a 501(c)3 non-profit, tax-exempt
corporation, is not allowed to lobby. But "Mickey W" will tell you that he isn't
lobbying either for higher taxes on average taxpayers, that he never has.
Mickey W. too is just "providing information, education" --
certainly not trying to influence legislation -- like the MTF "rollback alternative" he advocated that House Speaker
Finneran adopted in 2000, trying to derail our ballot question; and like
those TV ads he did last November while leading the opposition against
Question 1, the proposed abolition of the state income tax.
Noah and Mickey W. will be the featured speakers next week
at a forum sponsored by the Progressive Legislators Group -- just casually "informing and educating," I guess. The
group formerly known as TEAM -- which has actively opposed every tax reduction we've
put on the ballot since 1990 -- and the "nonpartisan" MTF -- which doesn't have a much
different track record -- will not be trying to "influence legislation," we're
supposed to believe.
This is the same MTF that will be holding its annual meeting
at State Street Bank tomorrow. And that's the same State Street Bank "which could be hardest hit" by a new
law that closes a tax loophole it's been taking advantage of for years, that
"would reduce its earnings by $25 million." It's fighting the law, ready to go to court to avoid paying its "fair
share."
Oh yeah -- coincidentally no doubt -- Karen Kruck, Senior
Vice President of the State Street Corporation, is on MTF's Executive Committee and Board of Trustees.
Maybe Mickey W. should strongly advise her to drop the bank's opposition to paying its
fair share -- after all, he has informed and educated everyone else that "revenues have to
be a part of the budget solution."
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Chip Ford |
The Boston Herald
Tuesday, March 11, 2003
Birmingham former aide stretches lobby law
by Elizabeth W. Crowley
A top aide to former Senate President Thomas F. Birmingham
is leading the charge on Beacon Hill for higher taxes despite a state law limiting lobbying by
ex-state employees.
Noah Berger took a new job as executive director of the
Massachusetts Budget and Policy Center soon after Birmingham left office in early January.
As a former legislative employee, Berger is required to take
a yearlong "cooling off" period from promoting, opposing or influencing legislation.
But Berger has been back on Beacon Hill in recent weeks,
meeting with aides to House Speaker Thomas M. Finneran and Senate President Robert E.
Travaglini. And he is scheduled to talk to lawmakers next week about the state
budget during a forum sponsored by Finneran and liberal Democrats in the
House.
Secretary of State William F. Galvin said the distinction
between being paid to advocate a viewpoint on public policy at the State House and simply providing
information can be a difficult one to draw.
In general, Galvin said, "if you accept money to try to
influence public policy, you need to register as a lobbyist." Galvin added that someone who is being
paid to meet with legislators or their aides to talk about current public policy,
"is most likely a lobbyist or at least acting like one."
Berger, a lawyer, said he has been careful, "to try and
avoid doing anything even close to lobbying." Instead, he said, time spent with legislative aides has
been about educating them with research and reports from his think tank
group.
"What I've been doing, A, is not lobbying and, B, to extent
that it is, it is well under the 50-hour limit," Berger said, referring to a state law that exempts
anyone whose lobbying is an "incidental" part of the job - it adds up to less than
50 hours in a six-month period or less than $5,000 of a worker's pay - from
having to register as a lobbyist.
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Associated Press
Tuesday, March 11, 2003
Banks to challenge state's bid to close 'loophole'
By Ken Maguire
The courts may have to decide whether it's legal for the
state to retroactively tax banks for the money they saved by capitalizing on a lucrative tax loophole.
A new law, shepherded through the Legislature by Gov. Mitt
Romney as part of a wider budget-cutting bill, allows the state to recapture $140 million in tax
revenue, and in the process close the loophole, in which banks created real
estate investment trusts to reduce what they owe.
Massachusetts banks say they'll challenge the law before the
state's Appellate Tax Board, and if necessary, in court. They claim it's unfair, even
unconstitutional, for the state to charge them for tax savings dating back
several years.
Romney and the Legislature are counting on the influx to
help balance the budget for the fiscal year ending June 30. But appellate hearings and lawsuits
could delay payments and leave the state scrambling for other revenue sources.
"The administration is confident that the banks will abide
by the law and pay the taxes due to the Commonwealth," Romney spokeswoman Nicole St. Peter
said. "We expect them to comply."
But the banks say the rules shouldn't be changed after the
fact.
"The legislation was a surprise to the industry," Massachusetts Bankers
Association spokesman Bruce Spitzer said. "The bankers do not object to the
change going forward. It's the retroactivity that's not making it a level playing
field."
The Department of Revenue says banks created real estate
investment trusts around 1999 as subsidiaries to hold mortgages. Parent banks receive dividend
income from the trusts and take advantage of deductions that lower their state
taxes.
Auditors examining 1999 returns last spring (there's a
two-year window on audits) noticed the trusts and informed banks that taxes are owed, DOR
spokesman Tim Connolly said. Budget officials asked Romney, who was proposing legislation to
close two other tax loopholes, to include "REITs."
"We were looking for a reinforcement of the legislative
intent," Connolly said. "(Romney) agreed with us and now the Legislature agrees with us as well."
The loophole measure was signed into law last week.
Officials estimate up to $170 million in revenue this fiscal year, followed by $100 million annually by
closing the three loopholes.
"We think we have a good argument for the tax being owed and
we're prepared to defend it," Connolly said.
They may have to.
The law firm of Goodwin & Procter, which represents many of
the affected banks, plans to argue that the change is unconstitutional. Lynne Barr, a partner
in the firm, would not discuss whether litigation is likely.
"The principle issue, now that the legislature has acted, is
the issue of retroactivity," Barr said. "We're in the process of assessing our options with our
clients."
State officials say there are between 50 and 60 REITs. State
Street Corp., which could be hardest hit by the new law, said last week it would reduce its
earnings by $25 million. Smaller banks would also be affected.
Most banks issued statements vowing to vigorously fight the
retroactivity. Several contacted Monday deferred comment to the Massachusetts Bankers
Association, which lobbies but does not represent them legally.
"The money might have been held up regardless of the
loophole legislation," Connolly said, noting that banks were contacted last year. "The banks weren't
exactly opening their wallets. If they continue to contest it, obviously it would
take some time."
Business groups fear the new law could resurrect the state's
"taxachusetts" nickname.
"We all need a predictable tax environment," said Brian
Gilmore, spokesman for the Associated Industries of Massachusetts. "The number one rule in
economic development is retain your existing employment base, provide an
environment that appreciates them, and provide incentives to help them
expand."
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