CITIZENS   FOR  LIMITED  TAXATION
and the
Citizens Economic Research Foundation

 

NEWS RELEASE
Wednesday, October 8, 2003

CLT Memo to the Legislature
Governor Romney’s veto of
the Cambridge Graduated Property Tax Hike


– MEMO –

To:   Members of the General Court
          October 7, 2003
 Re:  Governor Romney’s veto of
          the Cambridge Graduated Property Tax Hike


Citizens for Limited Taxation thanks Governor Romney for his veto, and asks the Legislature to stop this latest attempt at class warfare.

We have heard all the “soak the rich” arguments during five graduated income tax ballot campaigns, but they were rejected by voters so let’s set them aside. Even if the argument worked, it would not apply to the property tax, which isn’t necessarily connected to ability to pay. Home values reflect market forces that often have little connection to personal finances. None of us know what extraordinary expenses (health care, family-care, charitable commitment) a taxpayer has to offset his income or property value.

Some people with more modest homes have no mortgages, or child-related costs, or education payments. So why transfer their share of the tax burden to people who might have less disposable income? Also, many Cambridge residents are renters who cover their landlord’s higher taxes.

The original residential exemption became law in only a few liberal communities like Cambridge. But then it began to spread, to communities like Watertown, Waltham, Somerville, Chelsea and Boston. And now the amount of the higher-tax spread is attempting to expand in Cambridge, which did vote against the graduated income tax in 1994 and may finally understand that the concept isn’t fair.

If it were possible, we would support increasing taxes on rich liberals who support tax increases on the rest of us who can ill afford them, but the only way to do this is to ask for voluntary extra payments. By all means, let liberals pay more for their beloved governments and to make themselves feel good. But don’t assume that everyone who owns a home with high value deserves to pay more than those of us with lower value.

We recommend that the Governor’s veto be sustained, and that Cambridge officials begin a campaign to encourage Cambridge liberals to voluntarily contribute more in property taxes to their city government. Publicly recognize them. Award them a little medal. Then let the rest of Cambridge’s taxpayers pay their own fair share -- the tax rate times their property value. If it’s too much, get control over city spending; if it’s too little, have a Prop 2½ override like the rest of us.

But if you override the veto then you will be encouraging similar requests from other communities. You could find yourself as a legislator in the middle of misguided class warfare in your own city or town, torn among senior citizens, young homeowners with small children, and owners of some of the old showplace homes that your community may want to preserve.

And if this catches on, there’ll be even more reason for productive overburdened taxpayers to find another place to live.


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