CITIZENS   FOR  LIMITED  TAXATION  &  GOVERNMENT
and the
Citizens Economic Research Foundation

 

CLT Update
Wednesday, March 27, 2002

Romney rejects Taxpayer Protection Pledge


Romney said that at this time he would not sign a "no new taxes pledge" offered by the anti-tax group Citizens for Limited Taxation. Swift and her two Republican predecessors in the corner office at the Statehouse did sign the pledge....

"I'm against tax increases," said Romney.... "I do not support them. But I'm not intending to, at this stage, sign a document which would prevent me from being able to look specifically at the revenue needs of the commonwealth."

The Springfield Union News
Mar. 27, 2002
Romney touches base in Wmass


The acting governor insists that staying the course on the income tax cut is the best strategy for turning the economy around, ignoring the fact that in the boom times of a few years ago the tax rate was half a point higher than it is today.

Last week Swift said that eschewing a grueling re-election campaign was the right thing for her family. Now she ought to do the right thing for her fellow citizens by reconsidering her position on the tax rollback.

A Salem Evening News editorial
Mar. 25, 2002
Swift should reverse stand on tax rollback too


Chip Ford's CLT Commentary

Mitt Romney last night announced that "at this stage" he will NOT sign the No New Taxes pledge.

I'm afraid "at this stage" we all must ask ourselves why.

Despite being told by Romney advisor Charlie Manning last week that Romney wanted to meet with Barbara this week to discuss tax policy and the pledge (after WBZ TV-4 newsman John Henning called to inform us he was on his way over for an interview, which was broadcast that evening) -- we were blindsided by his announcement last night.

Shades of Swift's Amirault decision, when the first we learned or it was from the media, despite advance assurances to the contrary from the administration. Last night's 9:30 call was from Springfield Union News reporter Dan Ring, and again we were caught unaware.

One CLT activist who called last night -- one of our consistently best petitioners for decades -- asserted that though he'd been preparing to hit the streets to get signatures for Mitt ... he now won't bother, until and unless Romney signs the pledge. I certainly don't blame him, and expect he won't be alone in this reaction.

On Monday we sent out Taxpayer Protection Pledge packages to every gubernatorial candidate; yesterday we followed with packages to every candidate for Lieutenant Governor.

A copy of the Taxpayers Protection Pledge package we sent to Mitt Romney (in Adobe PDF file format) is available for downloading.

I suggest that you download it, and present it to Mr. Romney if the situation avails itself to you.

What Mitt Romney fails to recognize is that the pledge isn't intended to bind a governor's hands, it is a tool. Instead it effectively binds the hands of a tax-and-spend Legislature, for they understand the power of a pledge. (Just ask George H.W. Bush of the consequences of his "Read my lips" broken promise!)

Currently eight governors, 1,247 legislators, and the President of the United States have all signed the pledge.

Why would any candidate NOT sign the pledge ... if they have no intention of raising taxes?

Surely he will come to recognize this, and sign on.

PS. You can e-mail Mitt Romney at:  mitt@romney2002.com

The Romney Campaign e-mail address:  campaign.feedback@romney2002.com

Romney campaign headquarters:

Phone:  866-ROMNEY-2002
            866-766-6392
Fax:      617-484-2687
Address:  Romney For Governor
                P.O. Box 381091
                Cambridge, MA 02238


The Springfield Union News
Wednesday, March 27, 2002

Romney touches base in WMass
By Dan Ring

SPRINGFIELD In his first appearance in Western Massachusetts since announcing his candidacy for governor, W. Mitt Romney last night pledged to oppose any tax increases and fight "mismanagement and waste" on Beacon Hill.

The Republican candidate for governor appeared at the Springfield Marriott in front of about 75 delegates for the party's nominating convention on April 6 in Lowell. Romney this week is holding similar receptions for GOP delegates from all regions of the state.

Acting Gov. Jane M. Swift eight days ago dropped out of the governor's race, saying the prospects of a bruising Sept. 17 primary with Romney would leave her little time to deal with the budget crisis and spend time with her family.

If elected governor, Romney said, he would work to protect people from new or increased taxes.

"This is not the time to go to folks and say, 'Oh, we have to raise your taxes,'" Romney told the crowd after he was introduced by Senate Minority Leader Brian P. Lees of East Longmeadow.

Romney said that at this time he would not sign a "no new taxes pledge" offered by the anti-tax group Citizens for Limited Taxation. Swift and her two Republican predecessors in the corner office at the Statehouse did sign the pledge.

To solve the state's fiscal crisis, Romney said, he would cut waste and patronage on Beacon Hill and manage the state better.

"I'm against tax increases," said Romney, who was credited for making a success out of the 2002 Winter Olympics in Salt Lake City as president of the game's organizing committee. "I do not support them. But I'm not intending to, at this stage, sign a document which would prevent me from being able to look specifically at the revenue needs of the commonwealth."

Romney said he favors the voter-approved cut in the state's 5.3 percent income tax. He said he supports allowing the income tax to drop to 5 percent in January 2003 as scheduled under a phased reduction in the tax passed by voters in November 2000.

In a phone interview after the reception, Senate President Thomas F. Birmingham, D-Chelsea, one of five Democratic candidates for governor, criticized Romney's position on taxes as too radical.

"He's pledged to implement the biggest tax cut in the history of the state in the middle of a recession," Birmingham said. "That necessarily means he's prepared to jeopardize the gains we've made in education and health care in order to forward an extreme position."

State government is facing a projected budget shortfall of about $2 billion for the fiscal year that starts July 1. Birmingham favors freezing the income tax at 5.3 percent or possibly putting it back at 5.6 percent to help erase the budget shortfall.

Other Democrats running for governor include businessman Steven Grossman of Newton, former state Sen. Warren E. Tolman of Watertown, Treasurer Shannon P. O'Brien of Whitman and former U.S. Secretary of Labor Robert B. Reich of Cambridge. The winner will face Romney in the Nov. 5 general election.

Republican activists from Western Massachusetts cheered Romney's entrance in the race, saying it gives the party an excellent shot at retaining the governor's office. Swift was sagging in the polls, but a poll earlier this month by Suffolk University in Boston showed Romney beating Birmingham, O'Brien and Reich.

"It's given the party a great big boost," said Elizabeth J. Boulais of Springfield, a delegate at the GOP convention and retired craft-shop manager. "We see that we can win now."

Victor M. Anop, a lawyer and delegate from Chicopee, said the Republicans are unified.

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The Salem Evening News
Monday, March 25, 2002

Editorial
Swift should reverse stand on tax rollback too

Back in 1990 when Bill Weld was first campaigning for governor, Massachusetts voters had the opportunity to vote on another income tax rollback.

Those were difficult times for the commonwealth and voters wisely rejected the initiative by a 58-39-percent margin. Weld supported the tax cut, but its defeat was the best thing that could have happened to him as he struggled over the next few years to bring the state budget back into balance.

Twelve years later as Weld's protege, Jane Swift, prepares to leave the scene, she could perform a major service for the next governor, be it Mitt Romney or whichever Democrat is nominated, by withdrawing her threatened veto of legislation that would freeze the tax rollback approved two years ago.

Those too were very different times than the ones we are experiencing today. Though there were faint signs of trouble ahead, the economy was still booming and revenues were running well ahead of projections. So the question before voters in November of 2000 was not whether to reduce services in order to give themselves a tax cut, but how to distribute all that surplus money the state had in its coffers.

Two years later ... well, listen to what the Massachusetts Taxpayers Association [sic] had to say in a release issued earlier this month: "The precipitous drop in underlying tax revenues combined with the major cut in the income tax rate have propelled the state into a fiscal crisis rivaling that of the late 1980s."

The nonprofit research organization estimates that "after plummeting more than $1.8 billion in fiscal 2002, state revenues will remain flat in 2003 as gains from a projected mild economic recovery are offset by the impact of tax cuts." Part of the blame rests with the income tax rollback which cost the state an estimated $425 million in the current fiscal year, according to the MTF's figures, and will cost it an additional $450 million in the fiscal year that begins July 1.

Meanwhile, as the local aid pot shrinks, municipal building projects are put on hold, schools and public safety departments warn of layoffs, and mayors and selectmen look to wring every last penny out of fees and property tax rates.

Don't let the Barbara Anderson types fool you. There's a price to be paid for the income tax cut, and it will those who can least afford it the hardest.

Those taxes now being eyed as a last resort to fund essential services -- the property tax, excise taxes, the cigarette tax -- are totally regressive. In other words, unlike the income tax, the amount you pay has nothing to do with how much you make.

Meanwhile, the least fortunate among us will have to make do with less and suffer more as holes begin to appear in the social welfare net.

"I'm really depressed at the thought of the cuts that will be necessary," state Sen. Fred Berry, D-Peabody, a longtime champion of the state's disadvantaged, told us last week.

He's right when he says it takes courage to advocate for a freeze in the tax rollback. But an increasing number of organizations, including MTF and Associated Industries of Massachusetts, are getting behind the idea.

Berry feels a majority of his colleagues in both the House and Senate would vote for a freeze -- if they didn't think a Swift veto would leave them hanging.

The acting governor insists that staying the course on the income tax cut is the best strategy for turning the economy around, ignoring the fact that in the boom times of a few years ago the tax rate was half a point higher than it is today.

Last week Swift said that eschewing a grueling re-election campaign was the right thing for her family. Now she ought to do the right thing for her fellow citizens by reconsidering her position on the tax rollback.

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