Chip Ford's CLT Commentary
Democrat candidate for governor Chris Gabrieli
yesterday announced his "responsible" plan to rollback the now
seventeen-years old "temporary" income tax hike to its historical 5
percent: by the time his term expires in 2010, if elected.
Now there's a political promise we can all take to the bank!
For this voters should cheer him?
It's ingrained in Democrats to spend every cent that
comes into state coffers, raid the so-called all-important "rainy day
fund" (for $550 million more in just next fiscal year's budget) to spend
even more, but to return any surplus to taxpayers only somewhere down
the road, someday, in the distant future, maybe.
Gabrieli "faults" the Romney administration for "lack of
results" -- but Governor Romney has included the tax rollback in every one of
the budgets he's submitted; he and Lieutenant Governor Healey have pushed for it
at every opportunity and Healey, now the Republican candidate for governor, is
still doing so. It was Gabrieli's fellow Democrats in the Legislature
who've refused to budge, refused to keep their promise made in 1989 -- who've
instead spent every cent of the state's annual surpluses.
Poor Mr. Gabrieli thinks he can somehow do better, ever?
Gabrieli recognized in his news release: "If we
ignore the people's overwhelming vote to reduce taxes to 5.0%, as some
in this race would have us do, we run the risk of fueling further
cynicism and mistrust at a time when we should be restoring people's
confidence in government."
So his plan is to not ignore the voting majority so
they will hopefully elect him. But not ignoring them isn't the
same as respecting them, abiding by their ballot decision of six years
ago.
For then he proposed to divvy up any future
surpluses, "40 percent for new spending and increasing local aid . . .
20 percent for the government's rainy day fund" and finally -- allegedly
to keep faith with the voters' 2000 mandate, he graciously added in 40
percent of any surplus toward finally rolling back the income tax rate.
By the time his term expires in 2010, if elected.
I believe Chris Gabrieli as much as I believe that
Attorney General Tom Reilly, another Democrat candidate, had an overnight
conversion and suddenly wants to rollback the tax right away!
Barbara said it best in our news release:
"Maybe voters should elect Chris Gabrieli, but not let him take office
for ten years, when the planets align, and pigs fly."
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Chip Ford |
Associated Press
Tuesday, July 11, 2006
Gabrieli outlines plan to roll back income tax
By Brooke Donald
Democratic gubernatorial candidate Chris Gabrieli outlined a plan
Tuesday to roll back the state's income tax to 5 percent by tying the
cuts to growth in economic revenue.
Under Gabrieli's plan, the current 5.3 percent would be cut gradually:
the more tax money the state brings in, the faster the rate would fall.
Gabrieli spokesman Dan Cence said the income tax rate could be down by 5
percent by the time Gabrieli's first term would expire, in four years.
The income tax rate is a hot topic among candidates for governor. Voters
approved a cut to 5 percent in 2000 but the Democrat-controlled
Legislature froze that at 5.3 percent when the state's economy tumbled.
Gabrieli's Democratic opponents are split on the issue, with Deval
Patrick saying it is not the right time to cut the income tax and
Attorney General Tom Reilly saying he supports one.
Republican candidate Lt. Gov. Kerry Healey supports an immediate
rollback.
"I disagree with those who say we should not cut the income tax to 5
percent at all. I also disagree with those who offer no specifics yet
insist we can cut taxes all at once," Gabrieli said in a statement
before his planned speech to the South Shore Chamber of Commerce. "We
need a fiscally responsible approach that will get real results for the
taxpayers of Massachusetts."
Gabrieli's plan would allocate 40 percent of the state's tax revenue
growth to pay for tax cuts and 40 percent for new spending. The
remaining 20 percent would go into the government's "rainy day" fund.
If revenue grows by 6.5 percent, which is the historical average
according to the Massachusetts Taxpayers Foundation, then Gabrieli says
taxes could be gradually cut -- reaching 5 percent in 2010.
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Gabrieli for Governor Campaign
July 11, 2006
Gabrieli Unveils Plan to Responsibly Rollback Income Tax to 5.0%
Ties Rollback to State's Economic Health;
Faults Romney/Healey for Lack of Results
RANDOLPH, MA - Citing the importance of keeping faith with the taxpayers
in an honest and fiscally responsible way, gubernatorial candidate Chris
Gabrieli today laid out his plan to roll back the state's income tax
from 5.3% to 5.0%.
"I think we have to get to 5.0% as quickly and responsibly as we can,"
Gabrieli said in a speech to the South Shore Chamber of Commerce in
Randolph. "I disagree with those who say we should not cut the income
tax to 5.0% at all. I also disagree with those who offer no specifics
yet insist we can cut taxes all at once. We need a fiscally responsible
approach that will get real results for the taxpayers of Massachusetts."
Gabrieli, who co-founded his own company and spent 15 years helping
other businesses grow and succeed, outlined a plan to cut income taxes
gradually by tying them to the state's financial health. Gabrieli
proposed a formula that locks state government into a commitment to cut
taxes by tying the cuts to the state's tax revenue growth above
inflation. The more tax money the state takes in, the faster the income
tax rate will fall to 5 percent.
Gabrieli's plan would allocate 40 percent of the state's tax revenue
growth to pay for tax cuts and 40 percent for new spending and
increasing local aid, while setting aside the remaining 20 percent for
the government's rainy day fund.
If revenue grows by 6.5%, which is the 25-year historical average
according to the Massachusetts Taxpayers Foundation, then we could cut
taxes in 2008 to 5.2% in 2009 to 5.1% and in 2010 to 5.0%, while pumping
$1 billion into new programs and local aid, and reserving $800 million
for the rainy day fund.
"These are real numbers, and this plan brings the kind of accountability
that has been lacking on Beacon Hill for too long," Gabrieli said. "This
Romney-Healey administration has proven they cannot be trusted to cut
taxes responsibly. And for 16 years, it's clear our people have been
unwilling to trust a Democrat at the fiscal helm. I want to change
that."
Gabrieli also questioned how some of his opponents could promise a tax
cut all at once.
"Simply put, it would be fiscally irresponsible to go to 5.0%
immediately," he said. "I've been looking at budgets most of my adult
life and the numbers just don't add up."
Next year, the consensus revenue estimate includes $18.9 billion in tax
receipts. The FY 07 budget just passed by the Legislature has us running
a deficit of over 500 million dollars, which would have to come from the
Rainy Day Fund. According to the Massachusetts Taxpayers Foundation,
just to balance this budget, growth would have to be higher than the
consensus budget estimates to the tune of over 500 million dollars,
while an additional $600 million would be required to cut taxes to 5.0%
immediately.
"We can't cut taxes all at once. That's the bottom line," Gabrieli said.
"I think a governor has to be honest about the financial choices we face
as a state, and be realistic about what we can and can't accomplish."
Gabrieli said it is important to honor the voters' decision to lower the
income tax rate, and to return a portion of the money gained as our
economy rebounds and revenues grow.
"If we ignore the people's overwhelming vote to reduce taxes to 5.0%, as
some in this race would have us do, we run the risk of fueling further
cynicism and mistrust at a time when we should be restoring people's
confidence in government," Gabrieli said. "The reality is that tax cuts
have become more political football than fiscal policy. To me, it
doesn't matter whether this tax cut or any other idea comes from
Republicans or Democrats - what matters is that we get the job done."
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CLT NEWS RELEASE
July 11, 2006
Gabrieli Tax Plan
Not a good day to announce or rebut a tax plan, but
CLT must respond to Chris Gabrieli’s news release.
Gabrieli said "it is important to honor the voters’ decision to lower
the income tax rate, and to return a portion of the money gained as our
economy rebounds and revenues grow." Sweet of him. Let’s go over the
history one more time, for Mr. Gabrieli:
The state promises in 1989 that an income tax increase will be
"temporary." A decade of rebounding economy and growing revenues passes,
as the state spends itself into another fiscal crisis. Voters take
matters into their own hands and in 2000, order the state to restore the
income tax rate to 5 percent by 2003.
In 2006, the rate is still at 5.3% as the economy rebounds and revenues
grow. Chris Gabrieli says it is important to honor the voters’ decision,
when the state gets around to it, maybe by 2010 – twenty-one years after
the "temporary" increase, ten years after the voter mandate, after it
does a lot of other stuff, when the planets align and pigs fly.
Maybe voters should elect Chris Gabrieli, but not let him take office
for ten years, when the planets align, and pigs fly.
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