Mass. Businesses Find Friend in Lawmaker

DiMasi told them he supports an annual sales tax holiday and eliminating the requirement that they put a pricetag on every item on their shelves, which retailers say is time consuming and expensive.

They're just the latest initiatives that have made DiMasi, a gay marriage-supporting liberal Democrat, a reliable ally of the business community.

"He's becoming a real statesmen," said Brian Gilmore, executive vice president of the Associated Industries of Massachusetts, which represents 7,000 businesses and employers. "He's not wed to any one ideology."

DiMasi has been businesses' go-to guy on taxes. When Gov. Deval Patrick, the state's first Democratic governor in 16 years, proposed raising hundreds of millions of dollars by closing what he called "corporate tax loopholes," DiMasi blocked it, saying it's a "catalyst to reduce jobs."

The speaker did agree to create a tax commission, comprised of administration and legislative representatives, to study Patrick's plan. But the commission for months has been split on what to recommend, with DiMasi's appointees pushing for an outcome that won't raise taxes. A final report is due next month.

DiMasi, installed as speaker in 2004 to succeed Tom Finneran, has also resisted Patrick's bid to allow cities and towns to raise meals and lodging taxes -- adding that to the study commission's agenda.

"The speaker's first instinct is to look for savings, not tax increases," spokesman David Guarino said. "He has always been a fiscal conservative."

Along with Patrick and Senate President Therese Murray, DiMasi supported passage of a film tax credit that has lured more moviemakers to Massachusetts. Murray and DiMasi are on board with Patrick's $1 billion life science bill, creating a stem cell bank to attract businesses.

But DiMasi is the key roadblock for Patrick's casino legislation. The governor says three resort casinos would generate 20,000 permanent jobs and $400 million in annual tax revenue, while DiMasi says he's not sold on those estimates, and is concerned about bringing the "casino culture" to Massachusetts.

Michael Widmer, president of the business-backed Massachusetts Taxpayers Foundation, said DiMasi "has come to understand the fragility of the Massachusetts economy." Widmer also is skeptical of the governor's casino projections, and favors initiatives such as last year's economic stimulus package, which creates tax incentives for businesses to expand in Massachusetts.

"Job creation is key to generating increasing revenues for state programs," he said.

Patrick agrees, saying his casino measure would do just that. As part of his pledge to create 100,000 jobs in his first term, he's also been crisscrossing the state, trumpeting the work of his administration in persuading businesses to expand locally. Evergreen Solar Inc., for example, announced plans to build a $150 million manufacturing plant in Westborough, adding about 350 new jobs. The Marlborough solar energy products manufacturer rejected offers from other states.

Despite their differences DiMasi and Patrick have been able to work well together on a variety of initiatives, among them the life science bill, and energy legislation.

On Thursday, the 62-year-old DiMasi even interjected some humor into the casino debate, at an unrelated news conference. Standing beside Patrick after a bill signing event, DiMasi said the House won't act on the casino bill until 2009. He then corrected himself, saying he meant to say 2008.

"Did I say 2009? That was a Freudian slip. I meant 2008," he said, pausing a moment and adding, "It could be 2009."

But organized labor wasn't laughing after DiMasi asked retailers to call up lawmakers in support of a bill that would gut the state's "item pricing" law.

"You're going to see some jobs be eliminated," Peter Derouen, spokesman for the United Food and Commercial Workers union, Local 791, which represents 6,000 supermarket workers and others in Massachusetts and Rhode Island.

Derouen, who says consumers would lose as well, estimates about five jobs per large supermarket would be lost. It also could hurt part-time workers, he said, who may lose hours and subsequently lose health insurance and pension benefits.

"It's very possible the speaker doesn't have some information that could enlighten him," he said. "Once he gets all the information on this system, from the consumers and the unions, it's very possible he may take another look at that."

Guarino said there are protections in the bill to prevent job losses.

Historically, Derouen said, DiMasi has been "pretty supportive of labor. Not every legislator is always with you on issues."

Massachusetts and Michigan are the only states requiring food retailers to individually price each product on their shelves, with some exceptions, such as loose fruits.

Speaking to the Retailers Association of Massachusetts, DiMasi called the law "antiquated" and said it should be amended. He supports changing the law to require price scanners in food stores, allowing customers to check the price of items.