Avoiding Taxes -- Now to be Paid by Taxpayers?

President Bush's pick to be Deputy Attorney General has strong ties to a lobbyist now under investigation. Timothy Flanigan directed the lobbyist's work to help offshore companies avoid US taxes.

Mr. Flanigan has been a lawyer for Tyco International since 2002. Remember them -- former Tyco CEO L. Dennis Kozlowski and CFO Mark Swartz wound up with criminal convictions.

Testifying before the Senate Judiciary Committee this week, the President's pick to be America's number two law enforcement officer admitted to his role in helping companies avoid law enforcement.

He also talked about his supervising work for controversial lobbyist Jack Abramhoff -- who's tied up in the Rep Tom DeLay (R-TX) ethics probe. Mr Flanigan said Mr Abramhoff lobbied on behalf of Tyco to stop the Corporate Patriot Enforcement Act. The Los Angeles Times cites the bill's history:

Bills filed in 2002 and 2003 by Rep. Richard E. Neal (D-Mass.) and Rep. James H. Maloney (D-Conn.) would have imposed tax penalties on such companies as Tyco. Other legislative proposals would have barred companies with offshore headquarters from getting government contracts.

The various proposals — all opposed by Tyco and other offshore companies — were widely referred to by supporters and foes as "the Benedict Arnold bills."

By moving their business off shore, Mr Flanigan's employer was able to avoid $400 million in taxes every year. (LAT)