CITIZENS   FOR  LIMITED  TAXATION
and the
Citizens Economic Research Foundation

CLT UPDATE
Tuesday, May 24, 2005

Senate Democrats dodge tax rollback budget debate


Democrats in the Senate thwarted Republican attempts to debate an income tax rate rollback as part of the budget yesterday, ruling out of order a GOP amendment for a rollback from 5.3 to 5 percent.

Minority Leader Brian P. Lees objected, but was unable to overcome a ruling from Senate President Robert E. Travaglini, D-Boston, that rejected the amendment because it failed to conform to rules requiring so-called "money items" be initiated in the House.

Mr. Lees called it "the most bizarre ruling I’ve ever heard of," and complained the ruling was "plucked out of the air" to avoid the debate. "To give up the ability to discuss a tax increase or tax cut in the budget is absolutely ridiculous."

The Telegram & Gazette
Tuesday, May 24, 2005
Tax amendment ruled out of order
Republican calls decision 'bizarre'


In an issue that sparked the biggest floor fight, Lees sought to lower the state's 5.3 percent income tax to 5 percent starting Jan. 1, 2007. Gov. W. Mitt Romney has also been pushing to cut the income tax to 5 percent....

But Senate President Robert E. Travaglini, D-Boston, said the state constitution requires money-related items to start in the House. Travaglini, citing an opinion from a Senate lawyer, refused to permit a vote on the amendment by Lees....

Lees said Travaglini's interpretation of the rules was the most bizarre he has encountered.

"It's very frustrating when rules are thrown out the window," Lees said during a break in Senate debate. "We will have another day."

Lees said he would file an amendment to cut the income tax when the Senate debates a bill for closing tax loopholes for corporations....

Senators are scheduled to complete debate on the budget today. Senate leaders are attempting to limit increases in the budget since the chamber's spending plan already is $230 million more than the budget approved in the House.

The Springfield Republican
Tuesday, May 24, 2005
Lees tax cut proposal blocked


Citizens for Limited Taxation has always been opposed to using outside sections of the state budget to make policy unrelated to the state budget. However, the issue of tax hikes and tax cuts does seem pertinent to the document in which tax revenues, either increased or decreased, are spent.

We also recognize that taxation issues must originate in the House. As Senator Brian Lees (R-East Longmeadow) noted in yesterday’s debate, the House budget contained language referring the income tax rollback to a study. The Republican amendment wanted to act on the same rollback now. Since the Senate is choosing to spend more tax money than the House, the amount of money available should be decided during the budget debate.

But we further recognize that the Senate, like the House, would rather spend the surplus created by the "temporary" tax hike of 1989, than follow the mandate of the voters in 2000 that the 5% income tax rate be restored. We recall the roaring ‘90s during which state spending doubled but the promised rollback was always deemed "unaffordable" by the Legislature; we hope this pattern will not be repeated. . . .

CLT News Release
Tuesday, May 24, 2005
Senate budget: the income tax rollback


It has never been clearer that the time is now to reduce the income tax to 5 percent. The state’s economy is soaring, the state budget is balanced, and the increasing number of working men and women of Massachusetts deserve a pay raise – in the form of a tax cut.

MassGOP Issue Alert
Tuesday, May 24, 2005
No More Excuses – Cut the Income Tax


Chip Ford's CLT Commentary

A victim of yet more Democrat treachery and trickery, yesterday the Senate Republicans' budget amendment to restore the voters' income tax rollback was deep-sixed, as it was in the House's budget.

During the Senate debate on whether to allow the rollback amendment, Senate President Travaglini said, "... it was the intent of the House that none of the actions they took at the time were to be taken seriously and none of the actions would take effect until further action by the DOR."

You will recall that the House doomed the tax rollback to "further study" instead of taking a recorded vote on restoring it. Now, even the Senate president admits that the House's dodge was never meant to "be taken seriously." Frankly, it never was.

Instead of again defying the will of the voters, now Democrats in the Legislature have simply ignored the voters' mandate as if the vote never happened and the voters don't even exist. In fact they don't in Massachusetts, until they're needed for legislators' virtually automatic reelection every two years.

In our "Memo to the Massachusetts Senate Regarding the Tax Rollback" (May 20), hand-delivered to each Senator on Friday, we wrote:

We hope that the Senate has more respect for the voters than the House showed in its FY’06 budget, which ignores the mandate to rollback the income tax rate to its traditional 5 percent.... Massachusetts faces many challenges as the economy changes, as the population ages. These challenges can be met only if there is respect and trust between the government and its constituents. The state can begin by keeping its word on the “temporary” income tax hike.

So much for hope that the Legislature will do "the right thing" or that trust can or will ever be restored between the governed and the governing, so long as the governing feel invincible.

Barbara the Optimist still feels that the rollback will eventually be brought up for a vote this year. She makes a good point that, if they wanted to kill it they had the votes to kill it. I the Cynic still believe that they've got our money ("It's MINE now and More Is Never Enough!") and they don't intend to ever return any more of it so long as they are in power. They have the numbers to avoid a vote that would become future campaign fodder, so they dodged the vote in both the House and Senate by whatever it took.

She sees what the House and Senate have done as perhaps buying time, waiting to see if the revenue continues to pour in, the surplus continues to mount, before ridding themselves of our persistent nagging. I see it as more of the same old arrogance that absolute power makes absolutely inevitable.

Time will tell, and our nagging that they so much detest will persist.

Chip Ford


The Telegram & Gazette
Tuesday, May 24, 2005

Tax amendment ruled out of order
Republican calls decision 'bizarre'
By John J. Monahan, Staff writer


Democrats in the Senate thwarted Republican attempts to debate an income tax rate rollback as part of the budget yesterday, ruling out of order a GOP amendment for a rollback from 5.3 to 5 percent.

Minority Leader Brian P. Lees objected, but was unable to overcome a ruling from Senate President Robert E. Travaglini, D-Boston, that rejected the amendment because it failed to conform to rules requiring so-called "money items" be initiated in the House.

Mr. Lees called it "the most bizarre ruling I’ve ever heard of," and complained the ruling was "plucked out of the air" to avoid the debate. "To give up the ability to discuss a tax increase or tax cut in the budget is absolutely ridiculous."

Meanwhile, bowing to a Senate goal of keeping "policy issues" out of the budget debate, Mr. Lees withdrew separate amendments proposing a shield law for journalists and restoration of the death penalty.

However, he vowed that the Senate would be forced to take a roll-call vote on the tax rollback later this year, and complained he had never seen such a narrow ruling on a tax issue.

"This is why the public becomes so cynical, when they see something like this," Mr. Lees said. The close rulings on the budget debate will stifle important issues he said, adding, "The budget debate is sometimes the only time a member can be heard on certain issues."

As for spending, the Senate remained largely frugal, rejecting most new spending proposals as it acted on about half of the more than 700 amendments filed over the Ways and Means Committee’s recommended $24 billion budget.

The Senate voted 27-11 against a proposal to set up a state witness protection program, despite arguments from Democrat and Republican supporters who said it is needed to protect witnesses in gang and domestic violence cases.

"Too often the witness protection services that could give witnesses the confidence to come forward are not there," said amendment sponsor Sen. Cynthia S. Creen, D-Newton. Mr. Lees called for a roll-call vote, saying Republicans would support the effort and that Lt. Gov. Kerry Healey has also called for establishing a witness protection program.

The Senate voted down amendments for $525,000 for the new George I. Alden Library at Quinsigamond Community College, and another $500,000 earmarked for overall funding for the Worcester campus.

Sen. Edward M. Augustus Jr., D-Worcester, saw the first piece of legislation he has sponsored approved. It was a budget amendment authorizing $100,000 in state funds for Centro Las Americas, a nonprofit social services agency in Worcester. Mr. Augustus said the funding measure, which matches the House budget, will mark the first time the 27-year-old organization has received state budget funds.

The Senate held for later consideration amendments seeking $500,000 to expand the number of amusement ride inspectors.

Sen. Stephen M. Brewer, D-Barre, sponsor of one of those amendments, said the money is essential to achieve "timely inspections" of amusement and carnival rides.

Mr. Lees told the Senate the inspections are needed to protect against accidents such as the one involving a Sizzler ride at a carnival in Shrewsbury last fall that killed 38-year-old Andrew R. Fohlin.

The amendment was held to allow further discussions with Ways and Means budget officials to determine if money could be found to support it.

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The Springfield Republican
Tuesday, May 24, 2005

Lees tax cut proposal blocked
By Dan Ring


The Senate president yesterday blocked a debate on a proposed cut in the state income tax, thwarting an attempt by a Western Massachusetts legislator to force a vote on the issue.

Senate Minority Leader Brian P. Lees, R-East Longmeadow, proposed the tax reduction as an amendment to the state budget for the fiscal year starting July 1. The Senate yesterday began debating some 700 amendments to the $23.98 billion state budget.

Senate Democratic leaders also effectively prevented debate yesterday on Lees' amendments to reinstate the death penalty in Massachusetts and to establish a shield law to allow journalists to keep their sources confidential in certain instances. Senate leaders said they didn't want to debate policy issues as part of the state budget, prompting Lees to withdraw the amendments.

In an issue that sparked the biggest floor fight, Lees sought to lower the state's 5.3 percent income tax to 5 percent starting Jan. 1, 2007. Gov. W. Mitt Romney has also been pushing to cut the income tax to 5 percent.

Under the amendment, the tax cut wouldn't take effect until a study was completed by the state Department of Revenue. The tax cut also wouldn't occur until further approval by House and Senate budget committees.

But Senate President Robert E. Travaglini, D-Boston, said the state constitution requires money-related items to start in the House. Travaglini, citing an opinion from a Senate lawyer, refused to permit a vote on the amendment by Lees.

The House of Representatives completed debate on the state budget last month. The House did approve an amendment identical to Lees' proposal, but Travaglini said Lees' amendment left out a provision that called for votes in the House and the Senate before the tax cut could be approved.

The proposed tax cut would cost about $587 million for a full year, said a spokesman for the state Department of Revenue. The reduction would save about $56 for a married couple earning $40,000 a year, renting a home and raising two children younger than 12.

Lees said Travaglini's interpretation of the rules was the most bizarre he has encountered.

"It's very frustrating when rules are thrown out the window," Lees said during a break in Senate debate. "We will have another day."

Lees said he would file an amendment to cut the income tax when the Senate debates a bill for closing tax loopholes for corporations.

Voters in 2000 passed a ballot question to reduce the then-5.85 percent income tax in phases to 5 percent. State legislators froze the income tax at 5.3 percent in 2002 during the state's fiscal crisis.

The Senate yesterday also approved an amendment by Lees and Sen. Stephen J. Buoniconti, D-West Springfield, that earmarks $200,000 for the Massachusetts Career Development Institute in Springfield.

Senators are scheduled to complete debate on the budget today. Senate leaders are attempting to limit increases in the budget since the chamber's spending plan already is $230 million more than the budget approved in the House.

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MassGOP Issue Alert
Tuesday, May 24, 2005

No More Excuses – Cut the Income Tax
April’s Strong Job Growth and Record Revenues
Make the Case for Reducing


It has never been clearer that the time is now to reduce the income tax to 5 percent. The state’s economy is soaring, the state budget is balanced, and the increasing number of working men and women of Massachusetts deserve a pay raise – in the form of a tax cut.

Still, the entrenched Democrats on Beacon Hill refuse to budge. They continue with their lame “we can’t afford it” mantra. Instead they spend your tax dollars on themselves with pay raises for legislative aides and reducing health care contributions for state employees.

Governor Romney’s reform of state government and pro-business policies helped close the $3 billion budget deficit. Now he’s calling on the Legislature to reduce the income tax to 5 percent, which will further strengthen the economy and help families.

Talking Points

l  April’s unemployment rate of 4.7 percent down from 4.9 percent in May. Lowest since December 2001. Massachusetts businesses added nearly 9,000 jobs in May and June.

l  April saw record tax collection of $2 billion. Guarantees fiscal year ends with surplus in hundreds of millions. Last fiscal year surplus: $700 million. Surpluses are taxpayer dollars state does not need.

l  Economic picture totally different from when Legislature froze the income tax at 5.3 percent. Change in outlook demands reduction of tax to 5 percent – as promised and as voted by citizens.

l  The Democrats make false claims that the economy is not healthy and the state cannot “afford” tax cuts. They are wrong. Strong tax revenues and solid job-growth signal points to a healthy economy. March marked the seventh consecutive month of job growth in Massachusetts.

Senate budget proposal debate this week: no income tax cut included, but it includes:

l  $75 million to reduce state employee health care contribution.

l  $9.8 million the Department of Conservation and Recreation did not ask for.

l  $6 million for a private non-profit that duplicates work of state’s travel and tourism office.

l  $800,000 for Massachusetts Cultural Council.

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