CITIZENS   FOR  LIMITED  TAXATION  &  GOVERNMENT

 

CLT Update
Monday, October 29, 2001

Boston Globe columnist calls for repeal
 of Tax Rollback, gets his facts wrong


As it is, the $246 billion tobacco settlement has become a national joke. Allegedly targeted for tobacco-control programs, the money has been spent in state after state on anything but public health....

The state can't afford a tax cut. At a cost of $450 million a year, it's a whopper even though the administration prefers to think of it as repealing a tax hike....

Some Beacon Hill Democrats have gingerly aired a plan to delay part of the tax cut for a year. It's not a bad idea, though too timid...

Why can't a referendum ever be repealed? Why can't a leader stand up and say, "I'm not cutting drug programs and education reform to pay for a token tax cut"?

The tax rollback is a fight waiting to happen...

Swift needs to reevaluate
By Adrian Walker
The Boston Globe
Oct. 29, 2001


"The tax rollback is a fight waiting to happen"? Adrian, it happened last November, and your side lost ... big time!

At least Boston Globe columnist Adrian Walker today is honest enough to say what he means, to call his goal a repeal of the tax rollback instead of a "one-year moratorium" -- but there it is again: "Repeal."

Of course Mr. Walker has a right to his opinion, but not a right to propagate false information. I sent him an e-mail message early this morning correcting his lax fact-checking and revisionist history concerning the "alleged" purpose of the tobacco settlement, and provided him with the true history of the "Big Tobacco" lawsuits and settlement:

In your column today, you wrote: "As it is, the $246 billion tobacco settlement has become a national joke. Allegedly targeted for tobacco-control programs, the money has been spent in state after state on anything but public health."

Just where did you find this erroneous rationale for the alleged purpose of the tobacco settlement? I have spent considerable time trying to find it, and have never been able to. It only surfaced post-settlement.

If you researched the history of the lawsuits, instead of blindly echoing revisionist history, you would have found that the true intent was in fact "reimbursement" for past money spent by taxpayers -- not some fiction about "targeted tobacco-control programs."

In the cause of accuracy, and to make this belated research as easy as possible for you, I've included relevant historical excerpts, below.

Maybe it will be of interest to you; then again, maybe it won't.

See also CLT's "Tobacco Settlement Project"

This morning, CLT Associate Director Chip Faulkner will be at the State House, hand-delivering a CLT memo to the offices of every member of the Legislature, based on Friday's news release and calling for hands-off the voter-mandated tax rollback. I'll post it to this list later today.

Chip Ford


The Boston Globe
Monday, October 29, 2001

Swift needs to reevaluate
By Adrian Walker

Acting Governor Jane Swift is staring down the barrel of her first tough decision, and I don't mean picking who's going to run the Massachusetts Port Authority.

On Thursday, the administration announced that the annual $300 million from the tobacco settlement will be redirected and aid to cities and towns will be slashed to cope with the state's fiscal meltdown. On top of that, all kinds of programs are likely to be cut, including prescription drug aid for seniors.

This comes as the governor is insisting she will hang tough on the whopping tax cut Massachusetts voters passed last year at the behest of Paul Cellucci, then governor.

But the choices that are being made now border on the immoral.

As it is, the $246 billion tobacco settlement has become a national joke. Allegedly targeted for tobacco-control programs, the money has been spent in state after state on anything but public health. Massachusetts had been one of the few exceptions to that trend, one of six states cited by the federal government for mounting effective tobacco-control programs. To take the entire installment for next year to close a budget shortfall sends a terrible message.

Still, there may be no choice. During the last fiscal crisis, cherished programs were cut left and right, and there really was no plausible way to save many of them. It was a painful bloodletting, but necessary.

If that is the case now and for the near future, then one thing is clear: The state can't afford a tax cut. At a cost of $450 million a year, it's a whopper even though the administration prefers to think of it as repealing a tax hike.

The politics of this are very messy. Republican activists care deeply about the tax cut -- truth is, they sometimes seem to care deeply about very little else. Republicans are only 13 percent of the statewide vote, but they're Swift's 13 percent, and she will face their wrath the second she shows any willingness to deal on taxes.

Besides that, both parties have now enshrined government by referendum as the unsullied will of the people, democracy in its purest form (except, of course, for Clean Elections). This tax cut illustrates what nonsense that sort of thinking is and the kind of box it can leave lawmakers in. The economic rationale for a cut that passed in boom time has completely flown out the window, yet even those who oppose the cut are mostly afraid to say so. That isn't good government, it's terrible government.

Some Beacon Hill Democrats have gingerly aired a plan to delay part of the tax cut for a year. It's not a bad idea, though too timid, and its legislative future seems dicey, especially given the certainty of a Swift veto.

Cities and towns will survive cuts in local aid, though far from painlessly. But the idea of slashing nearly half a billion dollars from the state budget to deliver a marginal tax cut is nutty, and will certainly punish the poorest residents to give tax relief to people with far less need.

Why can't a referendum ever be repealed? Why can't a leader stand up and say, "I'm not cutting drug programs and education reform to pay for a token tax cut"?

The bad news for Swift -- and some of her likely opponents, too -- is that the tough choices are going to keep coming, and in the heart of an election year. Taking the route of expediency on this one will only force more difficult decisions down the road.

Since becoming acting governor, and especially since the birth of her twins, Swift has floated on a cloud of good will. But the honeymoon has to end at some point. Good leaders pick their battles. The tax rollback is a fight waiting to happen, and Swift could do worse than to prove her mettle by taking on her party, choosing the side of right, and managing the crisis. Otherwise, it will manage her. And if that happens, the Swift administration could be a short one.


NOTE: In accordance with Title 17 U.S.C. section 107, this material is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml


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