CITIZENS   FOR  LIMITED  TAXATION
and the
Citizens Economic Research Foundation

 

CLT UPDATE
Wednesday, March 5, 2003

Tax hikes, "fee" increases and the Blue Wall


Legislative leaders are warning cities and towns to brace for local aid cuts as high as 20 percent - a move that sent mayors scrambling and drew sharp protest from Gov. Mitt Romney, who had proposed trimming one-fourth that amount....

Rogers' mention of cutting education money sent shockwaves through the school community - with the Massachusetts Teachers Association pledging to push tax hikes as an alternative.

"This is not protecting education," said MTA President Cathy Boudreau. "This is going backwards."

Senate President Robert E. Travaglini, who has pledged to protect human service programs, yesterday raised anew the possibility that the Senate would back tax hikes to ward off worst case cuts.

The Boston Herald
Mar. 4, 2003
Gov disputes lawmakers' doomsday budget warnings


The mayor stressed that the new charge on property fit carefully within the Romney administration's definition of a fee. "No one is required to own property in the city of Boston," Menino said. "It is entirely voluntary." ...

While the above is fiction ... the underlying notion is quite serious. The Romney budget really does contain $1.4 billion of what Kriss calls "revenue enhancements." And each of those enhancements will end up coming out of someone's pocket....

The Romney administration has looked askance at Menino's proposals to boost local revenues, decrying them as taxes. Boston's individual revenue-raising measures may or may not be smart public policy, but surely measures such as higher towing fees or surcharges on entertainment are no broader or more intrusive than the so-called fees the administration itself is planning.

If the state can do it, cities and towns must be wondering, why can't we?

The Boston Herald
Mar. 5, 2003
Semantics aside, you still pay for it
by Thomas Keane Jr.


"You should see the State House whenever a bill's pending that the (police) unions consider threatening," said anti-tax czarina Barbara Anderson. "The place fills up with policemen in uniform ... very big policemen."

"A sea of blue," says Michael Widmer, president of the Massachusetts Taxpayers Foundation. "In full regalia. And, by the way, they're armed."

"Are they all that big?" wonders Anderson. "Or do they just pick big ones for that day?" ...

"It's really something to see," said Anderson. "I'm talking about so many (police) up there you can't elbow your way through the State House ... They're everywhere. Very big. In uniforms."

And where oh where do these hundreds park? Said Anderson, "Wherever they want."

The Boston Herald
Mar. 4, 2003
A wall of blue blocks attempts to gut Quinn bill
by Margery Eagan


Chip Ford's CLT Commentary

State Rep. John Rogers, chairman of the House Ways and Means Committee, is off and running again. He's using the same strategy as he did last year to get his huge tax increase. First, deny there's any tax hike in the works; next, wind up all the powerful Gimme Lobby special interests with threats of massive funding cuts; and finally, just set them loose.

Last year's "Biggest Tax Increase in State History" took another $1.2 billion from our pockets. Gov. Romney's budget includes $1.4 billion in additional "revenue enhancements," fees, whatever he wants to call the huge pile of money coming from us and going into the state's coffers, instead of calling them taxes.

Boston Herald columnist Tom Keane picked up on the theme that if these are fees then we can just do away with taxes entirely and just keep creating and raising "fees."

Last Thursday, I suggested we just repeal the state income tax and instead institute "user fees" on jobs -- after all, working is voluntary too. Tom Keane today suggests the property tax be replaced by a property "fee" - "No one is required to own property in the city of Boston," his satirical Menino character explained. "It is entirely voluntary."

Many of Gov. Romney's proposed and increased fees are truly fees and arguably should or could be legitimately increased ... but too many are questionable or outright taxes disguised as "fees." This remains a concern for us ... and apparently for others as well.

If this disingenuous ploy stands, there will be no end to the use of "divide-and-conquer" targeted "fee" increases and creations. They'll soon nickel and dime us to the death of a thousand cuts ... or should I say increases.

There's been a lot written lately about Gov. Romney taking a pass on the Quinn Bill and paid police details ... but there's a long history of fear and intimidation surrounding any tinkering even around the edges of law enforcement perks and privileges. Margery Eagan, Boston Herald columnist and talk show host, captured the climate of fear and intimidation best.

Don't look for anything to change with that $100 million "core service" or Massachusetts being the only state in the nation with paid police details - there are no profiles in courage on Beacon Hill.

Chip Ford


The Boston Herald
Tuesday, March 4, 2003

Gov disputes lawmakers' doomsday budget warnings
by Elisabeth J. Beardsley

Legislative leaders are warning cities and towns to brace for local aid cuts as high as 20 percent - a move that sent mayors scrambling and drew sharp protest from Gov. Mitt Romney, who had proposed trimming one-fourth that amount.

Sen. Therese Murray, the Senate's budget chief, said she was "surprised" that Romney's budget proposal only nicked $232 million out of the $5.2 billion local aid account - a 5 percent reduction.

But facing a $3 billion deficit, Murray (D-Plymouth) said lawmakers have been warning local leaders "for the last four months" that local aid would be slashed between 10 percent and 20 percent.

"I think unfortunately that's true," Murray said.

The deepest local aid cuts seen in a decade will be outlined first in the House budget proposal, slated for release next month.

Where Romney's lesser cut had offered hope to cash-strapped mayors, House Ways and Means Chairman John Rogers warned "prudent" local planners of a 20 percent raid - and said he's looking to slash into previously protected education money.

"Things are that bad," Rogers said. "Clearly, we can no longer hold local aid harmless. We're talking about Chapter 70 as well."

Romney, who had tried to minimize his own local aid cuts after mayors protested, immediately recoiled from the legislative salvo.

"I do not want to see local aid cuts go deeper than those we proposed," Romney said. "Cities and towns just can't afford a bigger reduction."

Mayors statewide, who will meet with Romney at the State House today, were appalled at cuts that could force teacher and police layoffs.

Springfield Mayor Michael Albano said recent cuts have already forced him to lay off 330 city workers - including 76 police officers and 54 firefighters.

"This situation is getting dangerous," Albano said. "We'd be cutting into the bone marrow ... It really would be fatal in a lot of ways."

Rogers' mention of cutting education money sent shockwaves through the school community - with the Massachusetts Teachers Association pledging to push tax hikes as an alternative.

"This is not protecting education," said MTA President Cathy Boudreau. "This is going backwards."

Senate President Robert E. Travaglini, who has pledged to protect human service programs, yesterday raised anew the possibility that the Senate would back tax hikes to ward off worst case cuts.

"That is not right now a preferred route of travel, but everything is still on the table," Travaglini said.

While the Senate has traditionally leaned toward taxes, House leaders said rank-and-file lawmakers aren't interested in a repeat of last year's $1.2 billion package. "You need 81 votes," Rogers said. "I don't think they're there."

Legislative leaders tried to cast doubt on Romney's claim that he saved $2 billion through restructuring - arguing that the numbers only add up to $233 million. "It's not truthful," Rogers said.

Romney dismissed the criticism. "I have no question about the fact that the numbers do add up," he said. "This is not an issue that will be solved by semantics."

Meanwhile, February tax collections came in $38 million, or 4.7 percent higher than last year, and $4 million higher than officials had expected - meaning the budget woes didn't worsen last month.

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The Boston Herald
Wednesday, March 5, 2003

Semantics aside, you still pay for it
by Thomas Keane Jr.

Imagine this news story:

In a bold move, the city of Boston announced it plans to abolish all taxes.

All major thoroughfares into the city will now bear signs, "Welcome to tax-free Boston," declared the city's mayor, Thomas Menino.

Beside each sign will be a city official collecting a new $25 entrance fee into Boston.

The city's move came after a declaration by Gov. Mitt Romney's administration that while it is not acceptable to raise taxes, increased fees for various services are fine.

"Taxes are very distinguishable from fees," said Eric Kriss, Romney's chief of administration and finance. Fees are for items that are "generally considered voluntary."

As an example, the Romney administration cited its plan to expand the state's bottle bill from just carbonated beverages to include all drinks. Choosing to drink water or juice, of course, is entirely voluntary.

In response, Menino made his historic announcement.

"The property tax is no more," proclaimed the mayor, standing in front of historic Faneuil Hall. With a giant pair of scissors, Menino symbolically cut in half a large piece of paper bearing the words "Tax Bill."

In a later announcement, the city unveiled plans for what it described as a "property fee." The new charge, which officials say will not fall under the state's Proposition 2½ restrictions because it is not a tax, will be assessed as a percentage of a property's value.

"We expect that Boston will raise more through these new property fees than it ever did with the property tax," Menino said.

The mayor stressed that the new charge on property fit carefully within the Romney administration's definition of a fee. "No one is required to own property in the city of Boston," Menino said. "It is entirely voluntary."

Menino, once emblematic of the tax-and-spend wing of the Democratic Party, said he had turned over a new leaf. "No more taxing for me," he said. "It's all fees from now on."

The tax/fee distinction has given new life to long-standing city proposals to raise revenues by increasing the charge for towing vehicles, imposing a surcharge on entertainment (such as movie and theater tickets), and collecting an additional 1 percent on meals at city restaurants.

"We were such fools," said one Boston official. "We presented all of these as if they were new taxes. Now we're going to have to submit a whole new package to Beacon Hill, labeling everything a fee. That's the problem with being a city worker. You just don't have the sophisticated understanding of the language that guys like Mitt Romney have."

Under Romney's proposed budget, $1.4 billion will be raised from various revenue measures, according to an analysis prepared by the Massachusetts Taxpayer's Foundation.

"I don't think Shannon O'Brien would have understood the tax/fee difference either," admitted a spokesman for the state's Democratic Party. "Maybe it's that we're Democrats and we think everything should be taxed. Thank God a Republican won. Otherwise, we'd have been raising taxes instead of fees to cover the state's budget deficit."

I trust the point is clear: The wisdom of various revenue-raising measures should not rest upon semantics.

While the above is fiction (although all quotes from the Romney administration are real), the underlying notion is quite serious. The Romney budget really does contain $1.4 billion of what Kriss calls "revenue enhancements." And each of those enhancements will end up coming out of someone's pocket.

Government fees, taxes or whatever you wish to call them amount to unwanted impositions on citizens. Some of those charges - say, for space at a state parking garage - are so narrowly drawn and so directly related to what's provided that we might view them in the same way we view charges for goods and services from the private sector.

But others are broadly based and touch virtually everyone. That's certainly true of an expansion of the bottle bill. It is also true of a host of other items in the administration's budget: increases in college tuitions (projected to fetch $50 million annually), new charges on the sale of used cars ($10 million) and higher fees at registries of deeds ($230 million). Education, automobiles, real estate. All three touch the lives of most everybody.

And localities such as Boston also have to be puzzled by the administration's word games.

The Romney administration has looked askance at Menino's proposals to boost local revenues, decrying them as taxes. Boston's individual revenue-raising measures may or may not be smart public policy, but surely measures such as higher towing fees or surcharges on entertainment are no broader or more intrusive than the so-called fees the administration itself is planning.

If the state can do it, cities and towns must be wondering, why can't we?

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The Boston Herald
Tuesday, March 4, 2003

A wall of blue blocks attempts to gut Quinn bill
by Margery Eagan

We can fume and fuss forever.

Neither Mitt Romney nor our esteemed legislators will ever rein in the out-of-control Quinn bill, now awarding $100 million and counting in pay hikes to police officers with degrees. They won't curb paid police detail deals, either. Here's why.

"You should see the State House whenever a bill's pending that the (police) unions consider threatening," said anti-tax czarina Barbara Anderson. "The place fills up with policemen in uniform ... very big policemen."

"A sea of blue," says Michael Widmer, president of the Massachusetts Taxpayers Foundation. "In full regalia. And, by the way, they're armed."

"Are they all that big?" wonders Anderson. "Or do they just pick big ones for that day?"

"All teddy bears," says Thomas Nee of the Boston Police Patrolmen's Association. "Really."

Here's how news stories typically read after the commonwealth's finest shows Beacon Hill its "considerable muscle," as the cops' tour de force is generally called:

"After intense lobbying by police interests, legislators quietly shelved plans for their ambitious overhaul of the Quinn bill, long criticized as a 'cash cow' and 'boondoggle' riddled with abuse and skyward spiraling costs ..."

Whereupon Nee deftly understates, "We lobbied heavily ... We vocalized our concerns."

Yet here's the rub: Clearly, one man's "vocalizing" is another man's meltdown.

"Many years later, I still remember (the scene)," said Widmer. "I found it ... breathtaking."

Widmer was speaking of the last time legislators quietly shelved ambitious plans to overhaul a sacrosanct police bonanza. That time, Bill Weld tried to eliminate paid police details, also long criticized as a "cash cow" and "boondoggle" riddled with abuse and skyward spiraling costs.

"The legislative committee?" said Widmer. "If they had any intention to look at (details) seriously, within about five seconds, it evaporated. (Legislators) became obsequious. They were grateful the police were coming to express their point of view. They were grateful for all the good work police do. It quickly became a major love-in."

Where was Weld? "I think it was a good one to delegate," quipped Widmer.

"I send my staff, too," said Geoffrey Beckwith of Massachusetts Municipal Association about his own group's efforts to thwart police cash cows and boondoggles riddled with abuse and skyward spiraling costs. But he was joking as well. Or so he said. And it must be so. He called the Quinn bill a "low hanging fruit ... ripe for the picking."

Not that anyone should expect a pluck.

While Romney diced through about everything else in the budget last week, police details, amazingly, emerged unscathed. And after Romney supported the Quinn bill throughout the campaign, the State Police Association of Massachusetts and the Massachusetts Chiefs of Police Association, in turn, supported him.

Remember Romney's all-American photo with police, his magnificent mane barely visible in a blue and black tapestry of stripes and holsters and shimmering boots and great big guns, all spit 'n' polish? Wouldn't you want those great big guns on your side, too?

Now don't get me wrong. I love police officers. Most everybody loves police officers in this post-9/11 world. Can't get enough of them. On the street, at the airport, hanging around the bus station. In this post-9/11 world, George W. Bush should give them and firefighters the $3.5 billion he promised, but hasn't delivered.

It's just, you know, the cash cows and boondoggles riddled with abuse and skyward spiraling costs - they're the problem.

As for the Legislature, well, as the patrolmen's Nee points out, any effort to cut back on Quinn will be hard fought where it always is, at the State House. "We're very sensitive," he said. And then, as always, our fearless leaders will dive under their desks.

"It's really something to see," said Anderson. "I'm talking about so many (police) up there you can't elbow your way through the State House ... They're everywhere. Very big. In uniforms."

And where oh where do these hundreds park? Said Anderson, "Wherever they want."

Margery Eagan's radio show airs noon to 1 p.m. weekdays and 9 a.m. to noon Saturdays on 96.9 FM-Talk.

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