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CLT UPDATE
Saturday, December 21, 2019

"The Boston Gas Party" in 2020?


Charlie Baker shows up to a GOP fundraising dinner and the maitre d' asks, "Governor, how many at your table?"

Baker replies, "I'm a party of one."

This may sound like the setup to a bad joke, but increasingly the governor is finding himself estranged from the mainstream leanings of his party. In a week when Republicans were rallying around their president as Democrats in the House made Donald Trump just the third president in history to be impeached, all Baker could muster was that he hoped the Senate could give Trump a "fair trial."

And Trump isn't the governor's only problem within the Republican Party.

New Hampshire Gov. Chris Sununu this week took a rhetorical blow torch to the Transportation Climate Initiative that Baker's environmental and transportation teams have spent a year working to develop. Sununu called TCI a "financial boondoggle" and a program that New Hampshire wants no part of....

So perhaps it was no surprise that when Baker was asked this week about his place in the Republican Party, he described himself as "still a big fan" of ... himself.

"I have no trouble being a Republican defined the way I want to define it," Baker told Boston Public Radio host Jim Braude.

Baker said he joined the Grand Old Party for Reagan and stayed for Weld and Cellucci. But even before then, a pre-teen Baker was smitten with another figure from the party – a White House Christmas Party to be exact. "Pat Nixon was really cool," Baker conceded, having met the former first lady when his dad worked in the Nixon administration....

The impact on gas prices is what had Sununu running for the White Mountains, and could lead other governors to follow his trail.

Theoharides noted, however, that gas prices can vary between the states by more than 17 cents for reasons that have nothing to do with governments trying to discourage fossil fuel consumption.

The TCI debate promises to rage on into the spring, and could influence the direction the House moves with respect to the new revenue Speaker Robert DeLeo wants to gin up in the new year for transportation. In a nutshell, the TCI-related gas price impacts will be layered on top of any gas tax increase proposals....

STORY OF THE WEEK: TCI forecasts a gas price increase before the gas tax debate can even happen.

State House News Service
Friday, December 20, 2019
Weekly Roundup - Pat Nixon Was Really Cool


Gov. Charlie Baker was against automatic gas tax increases before he was for them.

These photos are from 2014, when Tall Deval was running for governor as, believe it or not, a friend of the taxpayers.

Boy, have times changed.

Now the imperious RINO fraud is cheerleading for the TCI — the Transportation Climate Initiative — which makes the automatic gas tax hike of 2014 seem like an outpouring of pure Athenian democracy.

I mean, in 2014 the hacks at the State House at least tried to engineer their heist via a constitutional mechanism, to wit, legislation, which could then be repealed by everybody standing around that “Stop Automatic Tax Hikes” sign.

And that’s exactly what happened. Even though the payroll patriots outspent the working classes 30-1, the automatic gas tax was repealed 53-47 — a much wider margin than Tall Deval enjoyed in his 40,000-vote squeaker over gubernatorial opponent Marsha Coakley.

To put it another way, five years ago Tall Deval needed us a lot more than we needed him....

California’s already got this scam going. Gas prices are close to five bucks a gallon. That’s Charlie Baker’s dream for Massachusetts, and our nightmare.

This TCI tax is a regional scheme — the hacks are acting like the worst kind of mob, trying to screw up their courage to screw the taxpayers up and down the Eastern seaboard all at once, on the grounds that we can’t stop all of them. To more fully understand the outlines of this multibillion-dollar heist, go to massfiscal.org.

It really smells. That’s why Tall Deval is leading the charge.

Thank goodness New Hampshire Gov. Chris Sununu has already said no way. I asked him Wednesday night if he thought the TCI was a scam.

“Let’s just say it’s … scammy,” Sununu said.

http://cltg.org/cltg/clt2019/images/baker002.jpg

Charlie Baker, as he was running for governor, protesting the gas tax. Courtesy photos

http://cltg.org/cltg/clt2019/images/baker001.jpg

The Boston Herald
Friday, December 20, 2019
Charlie Baker’s gas tax cements his RINO legacy
By Howie Carr


Perhaps N.H. Gov. Chris Sununu would be willing to give a TED talk to Massachusetts lawmakers — he has much to teach them.

Sununu rejected the Transportation Climate Initiative backed by Gov. Charlie Baker, calling the bid to reduce carbon emissions and raise money for transportation projects by hiking gas prices a “financial boondoggle” and a burden on drivers.

A state official expressing concern for taxpayers — and doing something to keep prices from rising — what a concept....

A spokeswoman for Vermont Gov. Phil Scott said the state is “reviewing and analyzing the draft (memorandum of understanding) in full, so it’s too early to weigh in at this point.”

One can imagine Vermont residents, and those who live in the other affected states, are looking at the prospect of a 17-cent hike in gas prices and are willing to “weigh in.”

Connecticut Gov. Ned Lamont noted “We’re watching that and obviously this is a regional initiative that a lot of our fellow states are watching as well. That’s nothing of what I’ve signed onto at this point. What I have signed onto is what I want to do to fix our transportation system.”

In the TCI poker game, only Sununu has played his hand....

Fortunately, not all Massachusetts lawmakers are on the TCI bandwagon.

“This tax, and that’s exactly what it is, is not only a detriment to pursue but an absolute wrecking ball to the financial well-being of working class citizens in Massachusetts,” state Rep. Nicholas Boldyga said. “When is enough enough? The return on investment when it comes to carbon emissions reduction is dismal. Which is why that argument should be dumped just like this tax.”

A Boston Herald editorial
Friday, December 20, 2019
Baker should follow Sununu’s lead and nix TCI


Lawmakers and gas station owners are calling on Gov. Charlie Baker to get approval from the Legislature before signing onto a regional compact that would raise gas prices in an attempt to combat climate change.

“What I find ironic is if (Donald) Trump was proposing to do something like this by executive order, all the politicians would be screaming their outrage at the top of their lungs and our attorney general would have already filed a lawsuit to stop it,” state Rep. Shawn Dooley, R-Norfolk, told the Herald.

Baker indicated last week that he would exercise his executive power to implement the Transportation Climate Initiative, which would charge fuel companies for the carbon emissions associated with the gas and diesel they sell and result in a price hike of 5 to 17 cents per gallon in the first year. He cited the Global Warming Solutions Act of 2008, saying it gives him the authority to sign on through an executive order.

Officials have not said how high prices might go in subsequent years and told reporters earlier this week that they did not examine how the economic impacts would change if neighboring states opted out, as New Hampshire now has done. Critics have said that forcing up gas prices in Massachusetts will send drivers and businesses to New Hampshire....

Jonathan Shaer, executive director or the New England Convenience Store and Energy Marketers Association, represents the wholesalers that would likely end up charging drivers for the fees they incur from the measure. He raised concerns about a lack of transparency and clear understanding of the cost increase, in addition to a separate gas tax that’s currently being considered by the Legislature.

“What is the aggregate of that? Now we’re not just talking about a TCI fee, we’re talking about TCI plus a gas tax. The Legislature needs an opportunity to have that conversation and give citizens an opportunity to understand that both are being discussed,” Shaer said. “That’s just good policy making.” ...

Joint Transportation Committee Chairman Rep. William Straus also raised concerns about the ambiguity around the costs involved in the measure.

“It’s hard to know exactly what the number is going to be here and so that concerns me,” Straus said. “I think any governor benefits with going above and beyond working with the Legislature even if he possesses sole authority to act at this point.”

The Boston Herald
Friday, December 20, 2019
Baker under pressure to put TCI before lawmakers


The state's lead negotiator on a multi-state pact to lower carbon emissions from vehicles said Thursday she was not surprised New Hampshire Gov. Chris Sununu withdrew his state from talks, as he slammed the program as a "financial boondoogle."

Energy Secretary Kathleen Theoharides said Thursday after testifying before the Senate Global Warming Committee that New Hampshire's participation in the still-developing Transportation Climate Initiative was not essential to its success.

Asked if she was surprised by Sununu's reaction, Theoharides simply said, "No."

However, as the chair of the coalition of Northeast and Mid-Atlantic states pursuing the regional cap-and-invest program, Theoharides said a "critical mass" of participation from the 12 original states and District of Columbia will be necessary to make TCI successful.

"We certainly don't think of this as a financial boondoggle," Theoharides told the News Service....

Theoharides said the TCI coalition hasn't yet examined how many states it would take to make a regional pact work. Other participating jurisdictions include Connecticut, Delaware, Maine, Maryland, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia and the District of Columbia.

"We haven't done specific modeling on that, and I think one of the reasons we haven't is because right now our goal is to get as many states as possible. But we certainly are looking for states to make this a meaningful market with real power," Theoharides said.

"We certainly will be talking more about what that size is as we move towards the spring," she added.

Sen. Michael Barrett, the vice chair of the Senate Committee on Global Warming and Climate Change, suggested that Massachusetts could join a market for carbon with California if the TCI coalition falls apart....

New Hampshire was one of nine states in the coalition that would have required the approval of its Legislature to join TCI in the spring when the program details are finalized.

Only in Massachusetts, Maryland and New York does the governor already have the authority to sign their states up unilaterally.

Along with New Hampshire, Maine and New York were initially considered to be "observer" states when the TCI effort began in December 2018, but Theoharides said those distinctions have blurred over time.

"All of the states are participating at the same level now, working toward a spring sign on," she said.

Barrett suggested that the three models for carbon emission reductions, peaking at 25 percent, were "quite moderate" and probably not enough to achieve his goal of net zero emissions by 2050.

Both Theoharides and Transportation Secretary Stephanie Pollack, however, said it's vital to start generating money for investments in cleaner transportation to giver drivers and alternative to their cars before using price more aggressively to change driving behaviors.

State House News Service
Friday, December 20, 2019
TCI Success Will Require “Critical Mass” of States to Join


Looking just beyond next week, the Legislature launches the second leg of its two-year session on New Year's Day. On that day, the income tax rate will fall from 5.05 to 5 percent, the minimum wage will rise from $12 to $12.75 and automatic voter registration is scheduled to begin through processes established at MassHealth and the Registry of Motor Vehicles.

State House News Service
Friday, December 20, 2019
Advances - Week of Dec. 22, 2019


Twenty years ago the Red Sox still played in the shadow of an imagined curse. The New England Patriots had been to two Super Bowls but never won. Tom Brady was a sixth-round draft pick and a fourth-string quarterback. Traffic on the Central Artery backed up above ground.

A little more than 20 years ago, 1.5 million Massachusetts voters told the state to roll back the personal income tax rate from 5.85% to 5%. Question 4 on the November 2000 statewide ballot, a citizen-driven referendum, won with 56% of the vote. It was a mandate the Legislature only partially accommodated and as years went by ignored....

Still, it’s frustrating that the slow deflate of the income tax was drawn out for another 15 years. Even as the state’s financial condition improved, with a vibrant economy and increased tax revenues, our elected representatives left the income tax sunset on the slow setting.

Some would argue that eliminating or reducing taxes is against the nature of government, that they only go up but never go away. It’s a cynical view but one the Massachusetts Legislature reinforced time and again, year after year.

And, at this point it isn’t really about the money. Most taxpayers will see only a modest benefit from finally dropping the income tax rate to 5% — perhaps enough to have a good Friday or Saturday night. The real issue is the principle of the thing. How many taxpayers voted for a 5% personal income tax rate in November 2000, never to see it actually happen, having moved away or died in the span of the human generation that passed before it actually came to be?

A Salem News Editorial
Thursday, December 19, 2019
The slow descent of the income tax


After two decades of waiting, Massachusetts residents will finally see that flat 5% income-tax rate they successfully voted for — too late though for some of the major tax-reduction advocates to see their work come to fruition.

“There are a lot of taxpayers who worked on that campaign who never saw the income tax reach 5%, as the voters mandated 20 years ago,” Director of Citizens for Limited Taxation Chip Ford told the Boston Herald. “Finally, it’s going to go back to 5% as promised. I’d say too little, too late, but that’s what you get from state government.”

The individual income tax rate will be reduced from 5.05% to 5% effective Jan. 1, the Baker Administration announced Friday.

That should have occurred 17 years ago....

Two years after its passage, however, lawmakers froze the income tax at 5.3% to fund budget shortfalls. Facing a voter backlash, the Democrat-controlled Legislature reluctantly created a mechanism to reduce the tax rate when the state’s annual revenue increases exceeded 2.5%.

Facing a voter backlash, the Democrat-controlled Legislature reluctantly created a mechanism to reduce the tax rate when the state’s annual revenue increases exceeded 2.5%.

But even then, the formula clearly reflected the government’s intention to forestall any tax-rate reduction for as long as possible. It only allowed for a paltry .05% annual income-tax rate decrease when that 2.5% revenue target was reached.

It took years before the commonwealth’s economy could support such revenue figures. For the first 10 years, there was no rate change. But reductions did occur in 2012, 2014, 2015 and 2016, leaving the rate at 5.10%....

We’re thinking especially of Barbara Anderson, the longtime anti-tax activist who along with Ford, marshalled the effort to get this question on the state ballot. Unfortunately, Anderson died of leukemia in 2016.

It seems many lawmakers believe there’s never enough money to support all their spending priorities. They’d probably point out that the $88 million that won’t be picked from taxpayers’ pockets in fiscal 2020 and the $185 million in fiscal 2021 represent an insignificant amount that could be better utilized for one of their pet programs.

While it’s true workers will just see incremental increases in their paychecks, that 5% income-tax rate sends a message.

While taxes remain a necessary fact of life, the Taxachusetts label isn’t.

A friendly business environment — not ever higher taxes — represents the best way to generate revenue.

A Lowell Sun editorial
Tuesday, December 17, 2019
Take that ‘Taxachusetts’


Sometimes, a dream deferred can finally come true.

In 2000, Massachusetts voters overwhelmingly supported Question 4 to reduce the income tax rate from 5.95% to 5%. The Legislature stepped in and set aside the results of the ballot question. They raised the tax rate, and then allowed it to be lowered one-half a percent if a series of artificial constructs they invented were met. This happened a couple of times over the years, but now, 20 years later, that formula will finally allow the tax rate to drop to what voters voted for 20 years ago.

I wrote about my own involvement in that effort last May, when my friend Chip Faulkner of Citizens for Limited Taxation died. To put it onto the ballot, volunteers like me pester people outside post offices and supermarkets to create a ballot question to repeal the Dukakis “emergency” tax hike from 5% to 5.95%....

Not every deferred dream has to dry up and wither away; and given past performance, we will always need Citizens for Limited Taxation.

The Cape Cod Times
Thursday, December 19, 2019
For patient taxpayers, a dream deferred may still come true
By Cynthia Stead


Chip Ford's CLT Commentary

The Royal Governor of Massachusetts, Sir Charles Baker the Second, continues to pursue his decree that taxes on the commoners shall rise, but resistance to his pronouncement is building among the serfs and subjects.  Such beleaguered citizens long ago listed their grievances when announcing the end of their patience, stating their complaints in part:

He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation:

He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance.

For imposing Taxes on us without our Consent:

For taking away our Charters, abolishing our most valuable Laws and altering fundamentally the Forms of our Governments:

For suspending our own Legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever.

Those excerpts from The Declaration of Independence of 1776 were as true then as they are becoming today.

The People's Governor of the neighboring state of Live Free Or Die New Hampshire has unceremoniously rejected Royal Governor Baker's rapacious tomfoolery, calling it a "fiscal boondoggle."  Even the neighboring states of liberal Vermont and taxaholic Connecticut are balking, withholding their respective judgments.

This past Monday we celebrated the historic Boston Tea Party of 1773, on December 16 the event 246 years ago which ignited a revolution that changed the world.

Instead of dumping tea into Boston Harbor, perhaps the next revolt will be launched over gas "The Boston Gas Party" of 2020?


This is the final CLT Update you'll get this year so I squeezed a lot into it.  It's time to shut down and get to work on my new computer system, a critical project still on hold.  Whether these Updates will start again in the New Year, whether or not CLT will continue into 2020, has yet to be determined.

If this is to be CLT's "last hurrah," then after 45 years the organization will go out on one final success:  Returning to taxpayers an additional $88 million in 2020 and another $185 million in 2021.  That last step of our successful 2000 ballot campaign that finally rolled back the "temporary" income tax hike of 1989 kicks in on January 1.  Perhaps that's a good note on which to bow out.

That's just the latest big savings CLT has provided all Massachusetts taxpayers over its 45 years as the state's premiere taxpayers' advocate; another $273 million added to the multi-billions of their dollars that CLT has saved them collectively over the decades.  For me it remains inexplicable that CLT's works and accomplishments have for so long been so unrecognized and under-appreciated while CLT struggles daily just to exist hand-to-mouth, so it can keep doing it for millions of oblivious beneficiaries.

Thank you to those whose contributions through the year got CLT to the end of 2019.  It has been a non-stop, truly hectic year, folks!  [See:  The Year In Review]  We couldn't have done it without your support and that of a diminishing number of loyal members; wouldn't have bothered even trying.

Merry Christmas, Chanukah Sameach, and best wishes to all for a healthy and prosperous New Year and the new decade ahead!

Chip Ford
Executive Director


 

State House News Service
Friday, December 20, 2019

Weekly Roundup - Pat Nixon Was Really Cool
Recap and analysis of the week in state government
By Matt Murphy

Charlie Baker shows up to a GOP fundraising dinner and the maitre d' asks, "Governor, how many at your table?"

Baker replies, "I'm a party of one."

This may sound like the setup to a bad joke, but increasingly the governor is finding himself estranged from the mainstream leanings of his party. In a week when Republicans were rallying around their president as Democrats in the House made Donald Trump just the third president in history to be impeached, all Baker could muster was that he hoped the Senate could give Trump a "fair trial."

And Trump isn't the governor's only problem within the Republican Party.

New Hampshire Gov. Chris Sununu this week took a rhetorical blow torch to the Transportation Climate Initiative that Baker's environmental and transportation teams have spent a year working to develop. Sununu called TCI a "financial boondoggle" and a program that New Hampshire wants no part of.

"We certainly don't think of this as a financial boondoggle," Energy Secretary Kathleen Theoharides said Thursday about Sununu's comments.

So perhaps it was no surprise that when Baker was asked this week about his place in the Republican Party, he described himself as "still a big fan" of ... himself.

"I have no trouble being a Republican defined the way I want to define it," Baker told Boston Public Radio host Jim Braude.

Baker said he joined the Grand Old Party for Reagan and stayed for Weld and Cellucci. But even before then, a pre-teen Baker was smitten with another figure from the party – a White House Christmas Party to be exact. "Pat Nixon was really cool," Baker conceded, having met the former first lady when his dad worked in the Nixon administration.

That attitude may serve Baker well as he works to bring on board as many of the 12 states that began the Transportation Climate Initiative as he can. The coalition, led by Theoharides, released a draft memo of understanding this week presenting three options for driving down carbon emissions from cars and trucks.

The most cautious approach would reduce emissions by 20 percent by 2032 and add an estimated 5 cents to the price of a gallon of gas. The most ambitious path contemplated would reduce emissions by 25 percent, but cost as much as 17 cents a gallon.

But it would also generate up to $7 billion a year by 2032 for states to invest in cleaner transportation alternatives like electric car rebates, buses and bike paths.

The impact on gas prices is what had Sununu running for the White Mountains, and could lead other governors to follow his trail.

Theoharides noted, however, that gas prices can vary between the states by more than 17 cents for reasons that have nothing to do with governments trying to discourage fossil fuel consumption.

The TCI debate promises to rage on into the spring, and could influence the direction the House moves with respect to the new revenue Speaker Robert DeLeo wants to gin up in the new year for transportation. In a nutshell, the TCI-related gas price impacts will be layered on top of any gas tax increase proposals.

The potential money from TCI is still several years away from becoming reality, and in the meantime, Baker said that in January he plans to request the remainder of the $50 million he asked the Legislature to deliver for expedited T maintenance.

The House and Senate withheld $18 million in the budget bill finalized last week, with the speaker questioning how Baker planned to spend the money and whether the governor was sincere in his assertion that it was needed for safety.

Whether its $32 million or $50 million, MBTA General Manager Steve Poftak said the transit agency anticipates putting together a plan by March to address the safety and culture concerns raised in a recent report by a task force led by former U.S. Transportation Secretary Ray LaHood.

At that time, Poftak has said more money will definitely be needed.

Rep. Jennifer Benson, a Lunenburg Democrat, won't have to worry about voting on new taxes, because she announced this week that she's leaving the House on Jan. 8. It will leave a void at the top of the Health Care Financing Committee ahead of a seven-month stretch during which health care reform was expected to significant attention.

Benson was tapped as the next president of the progressive Alliance for Business Leadership, succeeding Jesse Mermell who stepped down to run for Congress in the 4th District.

The vice-chair of the committee is Rep. Dan Cullinane of Boston.

If the speaker follows the template he used last session when Peter Kocot passed away in February of the second year in the middle of work on a health care bill, he'll leave Cullinane where he is and assign the heavy lifting to someone like Majority Leader Ron Mariano. Though that strategy didn't work out so well in 2018.

Comptroller Andrew Maylor's strategy to coax an agreement out of the House and Senate on an overdue fiscal 2019 closeout budget worked a little better, even if the players on the field didn't run the play exactly how it was drawn up.

The Legislature may have ignored Maylor's self-imposed deadline for a deal, but did stick around until the wee hours last Wednesday to get a budget done.

And that, it turns out, meant Maylor could fly off to Disney World for a vacation this week without the burden of worrying about how he will be able to produce the state's annual financial report, which is already almost two months late.

His staff was hard at work on that back in frigid Boston.

Returning for a moment to that whole impeachment thing, it's worth noting that all nine members of the Massachusetts delegation to the House voted in favor of the two articles of impeachment against the president, including Rep. Stephen Lynch, who waited until Monday to make it clear how he'd vote.

Rep. Jim McGovern, who controlled a lot of the speaking time as Rules Committee chairman, made sure to give ample floor time to members from Massachusetts, including Rep. Lori Trahan who this week learned that the Ethics Committee will open a full investigation into a loan she gave her campaign in 2018.

STORY OF THE WEEK: TCI forecasts a gas price increase before the gas tax debate can even happen.


The Boston Herald
Friday, December 20, 2019

Charlie Baker’s gas tax cements his RINO legacy
Old photos tell the Transportation Climate Initiative story
By Howie Carr

Gov. Charlie Baker was against automatic gas tax increases before he was for them.

These photos are from 2014, when Tall Deval was running for governor as, believe it or not, a friend of the taxpayers.

Boy, have times changed.

Now the imperious RINO fraud is cheerleading for the TCI — the Transportation Climate Initiative — which makes the automatic gas tax hike of 2014 seem like an outpouring of pure Athenian democracy.

I mean, in 2014 the hacks at the State House at least tried to engineer their heist via a constitutional mechanism, to wit, legislation, which could then be repealed by everybody standing around that “Stop Automatic Tax Hikes” sign.

And that’s exactly what happened. Even though the payroll patriots outspent the working classes 30-1, the automatic gas tax was repealed 53-47 — a much wider margin than Tall Deval enjoyed in his 40,000-vote squeaker over gubernatorial opponent Marsha Coakley.

To put it another way, five years ago Tall Deval needed us a lot more than we needed him.

And now, this is how he repays the favor — by trying to jam through a second gas tax, on top of the already outrageous 44.9 cents (federal and state) per gallon. It’s all in the guise of an arbitrarily imposed “carbon fee,” which is going to be a lot harder, if not impossible, for the taxpayers to repeal via the referendum process.

Of course Tall Deval and the rest of his shameless, tax-fattened greedheads are claiming this immediate 17 cent per gallon hike is to protect the polar bears, but no one’s buying that.

Like the ill-gotten gains they were conniving to grab in 2014, much of this latest highway robbery is in reality destined to bail out the MBTA pension fund, i.e., the Bulgers, at least two of whom retired with full pensions while in their mid-40s.

I don’t know which of these photos is my favorite — maybe the one with Tall Deval grimacing as then-Rep. Geoff Diehl excoriates the takers and defends the makers. Back then we always wondered if Baker was as committed to repealing the automatic gas-tax increase as people who worked for a living — and this photo makes us remember why we were so skeptical.

At least five years ago he knew what it was like to actually have to pay for filling up your car. Check out those prefracking prices — $3.99 for high-test. Right now those are the bad old days. If Tall Deval gets his way now, they’ll be the good old days.

California’s already got this scam going. Gas prices are close to five bucks a gallon. That’s Charlie Baker’s dream for Massachusetts, and our nightmare.

This TCI tax is a regional scheme — the hacks are acting like the worst kind of mob, trying to screw up their courage to screw the taxpayers up and down the Eastern seaboard all at once, on the grounds that we can’t stop all of them. To more fully understand the outlines of this multibillion-dollar heist, go to massfiscal.org.

It really smells. That’s why Tall Deval is leading the charge.

Thank goodness New Hampshire Gov. Chris Sununu has already said no way. I asked him Wednesday night if he thought the TCI was a scam.

“Let’s just say it’s … scammy,” Sununu said.

You’ll never see Tall Deval at a gas pump again — or in front of a pro-taxpayer sign, for that matter. But given his deep commitment to fighting climate change, I’m sure his New Year’s resolution is to give up his State Police car and ride into the city every morning on the T’s commuter rail — preferably on one of those wonderful Depression-era cars where the heat only kicks in every third day.

Shouldn’t be a problem for Tall Deval though. Hacks like him are so full of hot air they can keep the entire train nice and toasty.


The Boston Herald
Friday, December 20, 2019

A Boston Herald editorial
Baker should follow Sununu’s lead and nix TCI

Perhaps N.H. Gov. Chris Sununu would be willing to give a TED talk to Massachusetts lawmakers — he has much to teach them.

Sununu rejected the Transportation Climate Initiative backed by Gov. Charlie Baker, calling the bid to reduce carbon emissions and raise money for transportation projects by hiking gas prices a “financial boondoggle” and a burden on drivers.

A state official expressing concern for taxpayers — and doing something to keep prices from rising — what a concept.

The perceived draw for the climate change compact is the chance to reduce carbon emissions. A noble goal, but the initiative doesn’t take into account that many residents don’t live close to public transportation, don’t trust public transportation to be reliable and actually need their cars. Live in the suburbs? You must be punished for your folly.

As the Boston Herald’s Mary Markos reported, 10 Atlantic seaboard states and the District of Columbia have been negotiating the TCI, and are reviewing the plan. Sununu’s move could spur other states to bow out.

A spokeswoman for Vermont Gov. Phil Scott said the state is “reviewing and analyzing the draft (memorandum of understanding) in full, so it’s too early to weigh in at this point.”

One can imagine Vermont residents, and those who live in the other affected states, are looking at the prospect of a 17-cent hike in gas prices and are willing to “weigh in.”

Connecticut Gov. Ned Lamont noted “We’re watching that and obviously this is a regional initiative that a lot of our fellow states are watching as well. That’s nothing of what I’ve signed onto at this point. What I have signed onto is what I want to do to fix our transportation system.”

In the TCI poker game, only Sununu has played his hand.

For Baker, and Massachusetts, the question now is: What’s next? Would we go it alone, or with few allies, in order to garner revenue for the MBTA — financial boondogle be damned?

Critics have pointed out the problems it would cause if the Bay State was in while New Hampshire was out.

“With much higher fuel costs Massachusetts small businesses on the New Hampshire border now risk losing customers to a lower cost state, as well as the sale of soda, cigarettes and snacks,” Christopher Carlozzi, state director of the National Federation of Independent Business, said. “Consumers will already travel over the border to save a few cents a gallon, but if it’s 17 cents they certainly will drive to New Hampshire for cheaper gas, which hurts Massachusetts state revenues.”

Those who don’t live close enough for a feasible drive to gas up in the Granite State would then bear the brunt.

Fortunately, not all Massachusetts lawmakers are on the TCI bandwagon.

“This tax, and that’s exactly what it is, is not only a detriment to pursue but an absolute wrecking ball to the financial well-being of working class citizens in Massachusetts,” state Rep. Nicholas Boldyga said. “When is enough enough? The return on investment when it comes to carbon emissions reduction is dismal. Which is why that argument should be dumped just like this tax.”

Yes, addressing climate change is important — but to pursue a tax on people who drive cars without consideration for the ease in which they might make a switch to public transportation, how location factors in transportation accessibility and options, and the unfairness of taxing those who don’t take the T to pay for improvements to it is not the way to do it.

Just ask Gov. Sununu.


The Boston Herald
Friday, December 20, 2019

Baker under pressure to put TCI before lawmakers
By Mary Markos

Lawmakers and gas station owners are calling on Gov. Charlie Baker to get approval from the Legislature before signing onto a regional compact that would raise gas prices in an attempt to combat climate change.

“What I find ironic is if (Donald) Trump was proposing to do something like this by executive order, all the politicians would be screaming their outrage at the top of their lungs and our attorney general would have already filed a lawsuit to stop it,” state Rep. Shawn Dooley, R-Norfolk, told the Herald.

Baker indicated last week that he would exercise his executive power to implement the Transportation Climate Initiative, which would charge fuel companies for the carbon emissions associated with the gas and diesel they sell and result in a price hike of 5 to 17 cents per gallon in the first year. He cited the Global Warming Solutions Act of 2008, saying it gives him the authority to sign on through an executive order.

Officials have not said how high prices might go in subsequent years and told reporters earlier this week that they did not examine how the economic impacts would change if neighboring states opted out, as New Hampshire now has done. Critics have said that forcing up gas prices in Massachusetts will send drivers and businesses to New Hampshire.

“The Administration looks forward to working with the Legislature to determine how best to invest the proceeds of TCI in ways that work best for Massachusetts communities,” Baker spokeswoman Anisha Chakrabarti said in a statement.

Jonathan Shaer, executive director or the New England Convenience Store and Energy Marketers Association, represents the wholesalers that would likely end up charging drivers for the fees they incur from the measure. He raised concerns about a lack of transparency and clear understanding of the cost increase, in addition to a separate gas tax that’s currently being considered by the Legislature.

“What is the aggregate of that? Now we’re not just talking about a TCI fee, we’re talking about TCI plus a gas tax. The Legislature needs an opportunity to have that conversation and give citizens an opportunity to understand that both are being discussed,” Shaer said. “That’s just good policy making.”

“We already know how people feel about gas tax, it’s very sensitive,” Shaer added, citing a 2014 ballot initiative that he said “crushed” a gas tax hike of 24 cents a gallon and automatic hikes for years to come.

“To not give the citizens of Massachusetts the opportunity to weigh in, in terms of if they’re willing to pay and how much they’re willing to pay, I think is a mistake,” Shaer said, “and I say that as a person who represents the companies that are going to have to interface with those motorists.”

Joint Transportation Committee Chairman Rep. William Straus also raised concerns about the ambiguity around the costs involved in the measure.

“It’s hard to know exactly what the number is going to be here and so that concerns me,” Straus said. “I think any governor benefits with going above and beyond working with the Legislature even if he possesses sole authority to act at this point.”


State House News Service
Friday, December 20, 2019

TCI Success Will Require “Critical Mass” of States to Join
By Matt Murphy

The state's lead negotiator on a multi-state pact to lower carbon emissions from vehicles said Thursday she was not surprised New Hampshire Gov. Chris Sununu withdrew his state from talks, as he slammed the program as a "financial boondoogle."

Energy Secretary Kathleen Theoharides said Thursday after testifying before the Senate Global Warming Committee that New Hampshire's participation in the still-developing Transportation Climate Initiative was not essential to its success.

Asked if she was surprised by Sununu's reaction, Theoharides simply said, "No."

However, as the chair of the coalition of Northeast and Mid-Atlantic states pursuing the regional cap-and-invest program, Theoharides said a "critical mass" of participation from the 12 original states and District of Columbia will be necessary to make TCI successful.

"We certainly don't think of this as a financial boondoggle," Theoharides told the News Service. "It's states working together to achieve significant, multi-generational goal, which is reducing climate change, and being able to use the proceeds on an individual level in each of their states to invest in the clean transportation system of the future."

The coalition released detailed financial models this week as it moves closer to asking states to sign on to the pact next spring to drive down emissions from the transportation sector by requiring fuel suppliers to purchase allowances for every ton of carbon their fuel wold emit when burnt. Transportation emissions accounts for over 40 percent of all carbon pollution in the region, and the cap-and invest program could generate up to $7 billion by 2032 for states to invest in clean alternatives.

The states are exploring three scenarios to reduce emissions from cars and trucks by 20 percent, 22 percent or 25 percent by 2032. Depending on the cap chosen by states, the program could add between 5 cents to 17 cents to the price of a gallon of gas.

"We are already taking substantial steps to curb our carbon emissions, & this initiative, if enacted, would institute a new gas tax by up to 17 cents per gallon while only achieving minimal results. This program is a financial boondoggle and the people of NH will never support it," Sununu said immediately after the draft memo of understanding was released Tuesday.

Other governors considered to be on the fence, like Vermont Gov. Phil Scott, have not yet commented publicly on the draft proposal.

Theoharides said the TCI coalition hasn't yet examined how many states it would take to make a regional pact work. Other participating jurisdictions include Connecticut, Delaware, Maine, Maryland, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia and the District of Columbia.

"We haven't done specific modeling on that, and I think one of the reasons we haven't is because right now our goal is to get as many states as possible. But we certainly are looking for states to make this a meaningful market with real power," Theoharides said.

"We certainly will be talking more about what that size is as we move towards the spring," she added.

Sen. Michael Barrett, the vice chair of the Senate Committee on Global Warming and Climate Change, suggested that Massachusetts could join a market for carbon with California if the TCI coalition falls apart.

While Theoharides said its true that states do not need to be contiguous for a carbon market to function, she said the ideal scenario would be to make it work with states on the East Coast that share transportation networks.

"It is helpful to have states that touch each other, that share borders and transportation networks," Theohardies said. She said the price increases under consideration were smaller than some of the current differences in gas prices between states or the fees to use a credit card at the pump.

"It's a very small price and so we don't expect people to be crossing state borders to get cheaper prices based on what we're setting up here, but it certainly makes it easier if states in the same geography are all participating in the same program," Theoharides said.

New Hampshire was one of nine states in the coalition that would have required the approval of its Legislature to join TCI in the spring when the program details are finalized.

Only in Massachusetts, Maryland and New York does the governor already have the authority to sign their states up unilaterally.

Along with New Hampshire, Maine and New York were initially considered to be "observer" states when the TCI effort began in December 2018, but Theoharides said those distinctions have blurred over time.

"All of the states are participating at the same level now, working toward a spring sign on," she said.

Barrett suggested that the three models for carbon emission reductions, peaking at 25 percent, were "quite moderate" and probably not enough to achieve his goal of net zero emissions by 2050.

Both Theoharides and Transportation Secretary Stephanie Pollack, however, said it's vital to start generating money for investments in cleaner transportation to giver drivers and alternative to their cars before using price more aggressively to change driving behaviors.


State House News Service
Friday, December 20, 2019

Advances - Week of Dec. 22, 2019

With Christmas falling on a Wednesday, Beacon Hill will join most other employers next week for a bifurcated work week. The House and Senate will each hold a pair of sessions, and Gov. Charlie Baker plans to meet with legislative leaders Monday afternoon, prior to the annual Menorah lighting. Activity slows on Tuesday for Christmas Eve, and likely won't pick up much on Thursday, a popular day for retail returns.

Before the holiday, a public hearing is planned on alcohol license bills, an area where lawmakers like to dabble when communities run up against license limits and need more. Comptroller Andrew Maylor's office continues work on the state's annual Statutory Basis Financial Report, which was due in October but delayed by the late enactment of the final fiscal 2019 appropriations bill. The report won't be complete next week, a Maylor spokesman said Friday, and officials in that office were still working to get the report out to independent auditors for review.

Looking just beyond next week, the Legislature launches the second leg of its two-year session on New Year's Day. On that day, the income tax rate will fall from 5.05 to 5 percent, the minimum wage will rise from $12 to $12.75 and automatic voter registration is scheduled to begin through processes established at MassHealth and the Registry of Motor Vehicles.

Auto and homeowners insurance discounts available to policyholders covered due to affiliations with companies, unions and alumni associations are at risk unless laws are extended beyond 2019 - a bill (H 4152) to do so cleared the House on Dec. 16 but has not surfaced in the Senate.

The state's longtime, top campaign finance regulator is set to leave his post on Friday. OCPF Director Michael Sullivan is retiring, but plans to stay in a part-time capacity to transition House, Senate and mayoral candidates into the newly required depository bank reporting system, an aide said. Picking Sullivan's successor is up to a commission consisting of Secretary of State William Galvin, GOP Party Chair Jim Lyons, Democratic Party Chair Gus Bickford, and a dean of a law school to be appointed by Gov. Baker.

A pair of early 2020 deadlines fall on Jan. 15. By that day, legislative leaders and the Baker administration are supposed to agree on a tax revenue base for shared use during fiscal 2021 budget development. And unless lawmakers agree to another extension or alternative law, simulcast betting operators will lose their authorization to continue taking wagers on the 15th.


The Salem News
Thursday, December 19, 2019

A Salem News Editorial
The slow descent of the income tax

Twenty years ago the Red Sox still played in the shadow of an imagined curse. The New England Patriots had been to two Super Bowls but never won. Tom Brady was a sixth-round draft pick and a fourth-string quarterback. Traffic on the Central Artery backed up above ground.

A little more than 20 years ago, 1.5 million Massachusetts voters told the state to roll back the personal income tax rate from 5.85% to 5%. Question 4 on the November 2000 statewide ballot, a citizen-driven referendum, won with 56% of the vote. It was a mandate the Legislature only partially accommodated and as years went by ignored.

Instead, Beacon Hill dropped the tax rate to 5.3% and passed a law conceding the rest — but only in small doses, and only if the state met certain financial targets. The first of those steps didn’t come for another decade. The final one didn’t come until last week.

Gov. Charlie Baker’s office made an announcement on Friday that, as of Jan. 1, the personal income tax rate will fall to 5%, in line with the wishes of the electorate. In the statement, Baker noted, “… we are finally making happen what voters called for almost 20 years ago.”

It’s hard to compare the Massachusetts of 20 years ago to today. The state’s finances were in far different shape. Two years after the tax question, Beacon Hill was carving into the money it sends to cities and towns, forcing mayors, town managers, city councils and selectmen to reconcile, at least partially, the demands of taxpayers with their own budgets.

Today, by contrast, state budgets increase local aid while the Legislature drags its feet over how to spend more than $1 billion from last year’s surplus.

So, it’s not hard to imagine why lawmakers resisted the constraints of Question 4. It’s one thing to acknowledge the wishes of taxpayers, it’s another to do so all at once — and at the expense of so many things taxpayers expect.

Still, it’s frustrating that the slow deflate of the income tax was drawn out for another 15 years. Even as the state’s financial condition improved, with a vibrant economy and increased tax revenues, our elected representatives left the income tax sunset on the slow setting.

Some would argue that eliminating or reducing taxes is against the nature of government, that they only go up but never go away. It’s a cynical view but one the Massachusetts Legislature reinforced time and again, year after year.

And, at this point it isn’t really about the money. Most taxpayers will see only a modest benefit from finally dropping the income tax rate to 5% — perhaps enough to have a good Friday or Saturday night. The real issue is the principle of the thing. How many taxpayers voted for a 5% personal income tax rate in November 2000, never to see it actually happen, having moved away or died in the span of the human generation that passed before it actually came to be?

Of course, Question 4 was also a testament to the messy, often impractical nature of citizen-led petitions. They play to the worst instincts of the electorate. Even the most well formed omit important details, or are blind to their consequences. Just look to legal pot for a case study, though that one also illustrates how the Legislature, once handed a referendum, can warp and distort the result.

But, again, those are issues resolved in the short term. Legal pot was passed, rewritten, implemented and sold in Massachusetts in less than one-quarter the time the state spent ratcheting down the income tax to the 5% threshold set at the ballot box.

A legislature unresponsive to the wishes of those it governs is reminiscent of another case study from history, albeit much older. That one involved an act of defiance inspired by the Townsend Acts and Parliament’s maneuver to force the East India Company’s cheap tea, along with the taxes imposed on it, upon the colonies. It was 246 years ago this past Monday that about 200 people got together and dumped the tea into Boston Harbor.


The Lowell Sun
Tuesday, December 17, 2019

A Lowell Sun editorial
Take that ‘Taxachusetts’

After two decades of waiting, Massachusetts residents will finally see that flat 5% income-tax rate they successfully voted for — too late though for some of the major tax-reduction advocates to see their work come to fruition.

“There are a lot of taxpayers who worked on that campaign who never saw the income tax reach 5%, as the voters mandated 20 years ago,” Director of Citizens for Limited Taxation Chip Ford told the Boston Herald. “Finally, it’s going to go back to 5% as promised. I’d say too little, too late, but that’s what you get from state government.”

The individual income tax rate will be reduced from 5.05% to 5% effective Jan. 1, the Baker Administration announced Friday.

That should have occurred 17 years ago.

That referendum-inspired law initially set an income-tax rate at 5.6% for tax year 2001, 5.3% for tax year 2002, and 5% for tax year 2003 and thereafter.

Two years after its passage, however, lawmakers froze the income tax at 5.3% to fund budget shortfalls. Facing a voter backlash, the Democrat-controlled Legislature reluctantly created a mechanism to reduce the tax rate when the state’s annual revenue increases exceeded 2.5%.

But even then, the formula clearly reflected the government’s intention to forestall any tax-rate reduction for as long as possible. It only allowed for a paltry .05% annual income-tax rate decrease when that 2.5% revenue target was reached.

It took years before the commonwealth’s economy could support such revenue figures. For the first 10 years, there was no rate change. But reductions did occur in 2012, 2014, 2015 and 2016, leaving the rate at 5.10%.

Revenues couldn’t trigger another tax reduction in 2017, but that didn’t stop legislators from voting themselves a 40-to-60% pay raise. It obviously didn’t bother them to approve this type of self-serving state spending despite budget constraints.

In fact, we mentioned at the time of the vote that Gov. Charlie Baker expressed concern about that money grab because the state faced a $500 million structural deficit heading into fiscal year 2018.

But recent robust revenue figures — including the prior fiscal year’s $1 billion surplus — finally set the stage for that 5% income-tax rate to become a reality.

And as the CLT’s director mentioned, the length of time it took to reach this goal deprived many of the principal tax-cut champions from enjoying this victory.

We’re thinking especially of Barbara Anderson, the longtime anti-tax activist who along with Ford, marshalled the effort to get this question on the state ballot. Unfortunately, Anderson died of leukemia in 2016.

It seems many lawmakers believe there’s never enough money to support all their spending priorities. They’d probably point out that the $88 million that won’t be picked from taxpayers’ pockets in fiscal 2020 and the $185 million in fiscal 2021 represent an insignificant amount that could be better utilized for one of their pet programs.

While it’s true workers will just see incremental increases in their paychecks, that 5% income-tax rate sends a message.

While taxes remain a necessary fact of life, the Taxachusetts label isn’t.

A friendly business environment — not ever higher taxes — represents the best way to generate revenue.


The Cape Cod Times
Thursday, December 19, 2019

For patient taxpayers, a dream deferred may still come true
By Cynthia Stead

Sometimes, a dream deferred can finally come true.

In 2000, Massachusetts voters overwhelmingly supported Question 4 to reduce the income tax rate from 5.95% to 5%. The Legislature stepped in and set aside the results of the ballot question. They raised the tax rate, and then allowed it to be lowered one-half a percent if a series of artificial constructs they invented were met. This happened a couple of times over the years, but now, 20 years later, that formula will finally allow the tax rate to drop to what voters voted for 20 years ago.

I wrote about my own involvement in that effort last May, when my friend Chip Faulkner of Citizens for Limited Taxation died. To put it onto the ballot, volunteers like me pester people outside post offices and supermarkets to create a ballot question to repeal the Dukakis “emergency” tax hike from 5% to 5.95%. Then-Gov. Paul Cellucci had appealed to the Taxation Committee that the emergency was over and the rate should be lowered. Chairman Paul Casey, D-Winchester, said there was nothing in the legislation passed indicating it was not permanent, flabbergasting the audience, until another member spoke up and said no, really, Gov. Dukakis had said it was meant to be temporary; the chairman said he didn’t remember that at all. Cellucci then wholeheartedly supported the ballot question by Citizens for Limited Taxation, who had gotten Proposition 2½ passed earlier, to lower the rate to 5%.

But when the paperwork was turned in, Secretary of State Bill Galvin was troubled by what were called “stray marks” – notes, cross-outs, remarks, etc., that signers had added to the petition. That could possibly confuse subsequent signatories who would not understand what they were signing. He wanted his office to be able to decide which sheets would be acceptable and which should be rejected as too confusing. But the state Supreme Judicial Court took it a step further and said that any mark would nullify the entire sheet, which Galvin opposed – because that would affect all petitions, not just ones he wanted to scrutinize. But the stray marks rule is still in force today.

This was not exactly what John Adams had in mind when he put the right of free petition into the Massachusetts Constitution, but Citizens for Limited Taxation went back out and collected the 80,239 signatures – again. So in 2000, voters overwhelmingly voted to approve the 5% tax rate. The Legislature then set that vote aside and created some revenue targets that would need to be met in succeeding years to allow the rate to fall. Voters were outraged, but not enough to stop incumbents from being reelected with no repercussions. And since they also voided the Clean Elections Law by refusing to appropriate the required funds, free petition was looking more and more like a charade.

But hey – here we are only 20 years later, and the will of the voters will finally be complied with.

Getting back to that 5% rate has another effect. It will reinstate the deduction for charitable donations that lawmakers also nullified 20 years ago, using the same invented revenue targets. Until now, deductions for charity could be made only on Federal 1040 tax returns but not on Massachusetts income tax. Question 7, passed the same year as the tax rollback, created a charitable deduction, pointing out that we are one of only eight states that do not allow it, and we rank 48th out of 50 in the nation according to measures of charitable generosity. In the argument against, Sen. Michael Morrissey, D-Norfolk and Plymouth, wrote, “Don’t be fooled by an appeal to your generosity, which is really intended to create a loophole that will cost Massachusetts taxpayers millions”; he argued that the rich would just avoid their fair share by donating to charity. The fiends!

I had thought that since Citizens for Limited Taxation is a registered 501(c)(3) organization we could take advantage of our newfound tax cut by making a donation to it in memory of Barbara Anderson or Chip Faulkner, neither of whom lived to see the law that they worked for and got passed by the people – not the Legislature – come into use. Alas, their foundation, Citizens Economic Research Foundation, also died with their passing and the exempt status was surrendered. But lack of a deduction is no reason to skip giving a donation to Citizens for Limited Taxation. We were never able to take it off our state taxes anyway. They are the institutional memory.

Not every deferred dream has to dry up and wither away; and given past performance, we will always need Citizens for Limited Taxation.

 

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Citizens for Limited Taxation    PO Box 1147    Marblehead, MA 01945    (781) 639-9709

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