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

 

CLT UPDATE
Thursday, May 2, 2002

Tax Day in Taxachusetts, and a feeding frenzy looms


House leaders said Wednesday they are still struggling to build a consensus on tax hikes.

"More and more" lawmakers are telling House leaders they will only support tax hikes if the money is used to reverse cuts to favored programs, said Rep. Paul Casey (D-Winchester), co-chairman of the Taxation Committee.

State House News Service
May 1, 2002
House chairman: '130 different great ideas' but no consensus


House lawmakers appear poised today to consider the politically treacherous step of hiking the income tax rate to as high as 5.75 percent even as they line up to divert spending for pet projects and pork.

House Speaker Thomas M. Finneran told the Herald yesterday there's "comfortable" support for canceling the voter-approved income tax cut - a move lawmakers are trying to paint as not being an actual tax hike.... "(Today) will be ... a judgment day." ...

Other amendments would hike the excise tax, impose new sales taxes on alcohol, and empower the state Department of Revenue to chase down smokers who cross the border to New Hampshire to buy cheap smokes....

As Republicans attacked the unprecedented rush for cash, Finneran denied any "feeding frenzy" is in the works.

The Boston Herald
May 2, 2002
Pols lard up to hike taxes


Nobody doubts that Massachusetts is facing a significant cash-flow problem. However, people cannot be faulted for concluding that the Legislature's credibility on this "crisis" is near zero.

The string of broken promises to taxpayers and displays of utter contempt for the wishes of the people stretches back to refusal to roll back the "temporary" income tax hike imposed during the last fiscal calamity more than a dozen years ago.

But the slippery dealing continues today....

That bit of fiscal legerdemain prompted Barbara Anderson, executive director of Citizens for Limited Taxation, to quip, "My goodness, we should all be grateful that he didn't 'anticipate' a $30 billion budget, or we'd now be hearing the alarm bells going off over a fiscal crisis magnitude of $8.7 billion."

A Telegram & Gazette editorial
May 1, 2002
Gaping gaps


State pols might not agree exactly how taxpayers should get the bill, but they now apparently see eye to eye on at least one thing - a sudden, frantic determination to spend....

"What do you expect?" asked House Republican Leader Francis Marini of Hanson. "They don't want to cut. The only thing they want to cut is the paycheck of the person out there who pays the bills."

The Boston Herald
May 2, 2002
Imminent vote on tax hike prompts pols' wild spending


As they prepare to take controversial votes on tax increases today, there's one thing most legislators don't have to worry about: reelection....

Without the threat of being swept out of office, tax votes are far easier for legislators to take, said Dennis Hale, a professor at Boston College who specializes in state and local politics.

"They don't feel constrained," Hale said. "If they don't have to worry about facing an angry electorate who can vote for another candidate, then it's much easier to do it." ...

Republicans and antitax groups are warning that many House and Senate members who aren't facing opponents now may still have to face write-in candidates if they vote to raise taxes this year. Fletcher noted that a flurry of candidates emerged in the last few weeks alone, as the Legislature prepared for its first major votes on taxes in more than a decade, and hope to run as write-ins.

The Boston Globe
May 2, 2002
For most in House, election is certain

See also:
The MetroWest Daily News - May 2, 2002
Pols ponder tax hike fallout


The House yesterday overwhelmingly approved a $1 per pack increase to the state cigarette tax, easily surpassing the two-thirds threshold needed to override a promised veto by Acting Governor Jane Swift and positioning Massachusetts to install the highest tax on tobacco products in the nation - one that would generate an estimated $225 million next year.

House assistant minority leader Bradley H. Jones Jr. predicted the new tax would help balance New Hampshire's budget by driving Massachusetts smokers across the state line to buy cheaper cigarettes. He and other Republicans maintain that the state doesn't need new taxes to cope with a $2 billion budget gap in the fiscal year that begins July 1.

The Boston Globe
May 2, 2002
Mass. House OKs $1-per-pack hike in cigarette tax


At every step, Question 4's backers were outmanned and outshouted. But they believed the voters would be with them on Election Day. And they believed that once the voters spoke, their decision would be final. They did everything that Massachusetts law asked of them. They played by the rules. To cheat them of their hard-earned accomplishment now would be a betrayal of the worst sort and a stab in the back of Massachusetts democracy.

The Boston Globe
May 2, 2002
Random musings
By Jeff Jacoby


The budget "crisis" is no crisis at all. It is a temporary setback. Temporary cuts in all programs, spending from "rainy day" and tobacco settlement funds could see us through until better times allow us to be more generous. As soon as the economy recovers, we can restore those funds.

All it takes is the political courage to say "No" to interest and advocacy groups. It's the kind of courage we ought to demand of those we elect to public office.

An Eagle-Tribune editorial
May 2, 2002
There's no reason for a tax hike


Chip Ford's CLT Commentary

This is it, TAX DAY in Taxachusetts. Yesterday the House voted overwhelmingly to increase that cigarette tax by a dollar a pack, creating the highest cigarette tax in the nation, by far.

Yesterday Barbara took to the airwaves from her hospital bed, doing a radio interview with Jim Braude and Margery Eagan on WTKK FM 96.9 and an on-camera interview with Jon Keller that was broadcast on TV-56 last night on its Ten O'Clock News.

The tax-and-spend feeding frenzy has overtaken the State House: Already counting the additional revenue from anticipated tax hikes, reps have filed over 1,500 amendments to increase spending, and the spending wish list continues to grow.

Chip Faulkner will be at the State House all day watching over the proceedings.

We need you to make calls to your state rep, senator, and Governor Swift, today ... now. This is it, your and our last chance to stop this tax-and-spend frenzy.

Chip Ford

PS.  We're now up to five definite sticker campaigns for state representative or senator, and possibly six.


Call your legislators. Call Gov. Swift's office.

The governor's phone number is: (617) 727-6250.


Find and contact your state rep and senator


State House News Service
Wednesday, May 1, 2002

House chairman: '130 different great ideas'
but no consensus

House leaders said Wednesday they are still struggling to build a consensus on tax hikes.

"More and more" lawmakers are telling House leaders they will only support tax hikes if the money is used to reverse cuts to favored programs, said Rep. Paul Casey (D-Winchester), co-chairman of the Taxation Committee.

That conditional support is making it hard to find consensus, Casey said. "The crystallization of a simple three or four maybe five [item] bill is very difficult right now," he said. After polling 157 House members on tax hikes, Casey said he has "130 different great ideas" but no consensus. Gaining steam after the polling are new taxes on alcohol and sales, though each item still enjoys "fewer than 50" members in support, he said.

Majority Leader Salvatore DiMasi said after a meeting late Wednesday with House Speaker Thomas Finneran that much of the tax debate may be hashed out in a closed-door caucus tomorrow. Support for individual tax hikes is weak, DiMasi said, and "when you try to put everything together in package, it gets even more tenuous," he said. "It's very tricky."

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The Boston Herald
Thursday, May 2, 2002

Pols lard up to hike taxes
by Elisabeth J. Beardsley

House lawmakers appear poised today to consider the politically treacherous step of hiking the income tax rate to as high as 5.75 percent even as they line up to divert spending for pet projects and pork.

House Speaker Thomas M. Finneran told the Herald yesterday there's "comfortable" support for canceling the voter-approved income tax cut - a move lawmakers are trying to paint as not being an actual tax hike.

And Finneran added there's a growing majority of House members who would be willing to increase the rate to 5.6 percent - a move considered taboo until just a few weeks ago. The current 5.3 percent rate is scheduled to go down to 5 percent next year.

"Each of them have majorities," Finneran said. "(Today) will be ... a judgment day."

The sudden weakening in the tax-resistant House comes after Finneran unveiled a $21.8 billion budget that slashed $1.5 billion from popular programs like education, human services and health care.

Lawmakers are still all over the map when it comes to how much and which taxes to hike, despite the fact that debate begins today.

Finneran plans to huddle privately with his top lieutenants this morning, then hold a closed-door caucus before the session begins.

But sources tell the Herald that Rep. Martin Walsh (D-Boston) is pushing a leadership preference to hike the income tax rate all the way to 5.75 percent - a move that would raise $700 million.

At a private caucus Tuesday, Finneran offered a package of tax hikes with the most support among rank and file lawmakers, including freezing the income tax cut, hiking the cigarette tax and reinstating taxes on capital gains.

Walsh's amendment would drive the income tax up to 5.75 percent, raising nearly $500 million more than just freezing the rate at 5.3 percent. It also includes the capital gains and cigarette tax pieces.

Walsh denied doing the speaker's bidding, and said he's worried about destroying life-saving human and social service programs.

"Marty Walsh doesn't want to be the one who votes for taxes," Walsh said. "Marty Walsh also doesn't want to be one that's driving people into the streets."

House Republican Leader Francis Marini (R-Hanson) reacted with horror to the 5.75 percent proposal.

"This is just a flat, 'I don't care what the voters passed, we're not doing it, mail your money in,' by Tom Finneran," Marini said. "I just can't see the governor signing a 5.75 percent tax."

Other amendments would hike the excise tax, impose new sales taxes on alcohol, and empower the state Department of Revenue to chase down smokers who cross the border to New Hampshire to buy cheap smokes.

Finneran's lieutenants said Tuesday they were seeking $1 billion in new taxes. But Finneran backed away from that pricetag yesterday - a day after acting Gov. Jane Swift's senior advisers told the Herald she would never accept that much in new taxes.

"Some members would like to go that high," Finneran said. "I'm not sure that that's the appropriate goal."

Swift, who has signaled she's willing to freeze the income tax rollback, could receive political cover from the fact that the rollback and severe education cuts have become linked in many lawmakers' minds.

"That's the political justification," Swift said. "We all know what the choices are. I'll wait and see what the Legislature does."

Lawmakers are so sure huge sums of new tax money will be raised they're rushing to pile not-yet-materialized money back into programs, pet projects and causes.

Many of the 1,555 budget amendments restored cash to programs sliced in Finneran's austere spending plan, bringing education funding back to this year's levels and pumping more into health and human services coffers.

More amendments, though, tied spending to election year add-ons for courts, senior centers, playgrounds and police houses.

In Boston, $125,000 was set aside to encourage curbside recycling while $19 million was added to the payroll at the Mass. Highway Department. Dozens signed on to a proposal pumping $6 million more into the state's bloated court system and reps from every region scurried to save treasured community policing dough.

As Republicans attacked the unprecedented rush for cash, Finneran denied any "feeding frenzy" is in the works. While amendments will be entertained in the "freewheeling and fully participatory" spirit of the House, Finneran warned that members shouldn't get their hopes too high.

"There'll never be enough money to accommodate ... half the cuts that were made," Finneran said.

Karen E. Crummy and David R. Guarino contributed to this report.

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The Telegram & Gazette
 Worcester, Mass.
Wednesday, May 1, 2002

Editorial
Gaping gaps

As House Speaker Thomas M. Finneran steps up his campaign to levy some $2 billion in new state taxes in fiscal 2003, the tiny Republican minority has adopted a strategy to hold individual lawmakers strictly accountable for their actions in the next week or so.

The GOP gambit may be Bay Staters' last, best hope for preventing the special-interest juggernaut grinding its way up Beacon Hill from becoming a tax-and-spend bandwagon at the Statehouse.

Nobody doubts that Massachusetts is facing a significant cash-flow problem. However, people cannot be faulted for concluding that the Legislature's credibility on this "crisis" is near zero.

The string of broken promises to taxpayers and displays of utter contempt for the wishes of the people stretches back to refusal to roll back the "temporary" income tax hike imposed during the last fiscal calamity more than a dozen years ago.

But the slippery dealing continues today. The House leadership's current slash-and-burn spending proposal is not a budget so much as a political bludgeon designed to create maximum disruption, maximum panic among special interests and advocates and, Finneran & Co. hope, maximum outcry for the taxes needed to sustain yet another $1 billion increase in state spending.

Too few in number to stop taxation measures, or even to sustain a gubernatorial veto, House Republicans hope to do the next best thing: Put lawmakers officially on the record by forcing roll-call votes on every taxation measure.

Mr. Finneran -- speaker for life in the House and, most likely, representative for life in his Mattapan district -- may feel he is immune to political backlash. However, the rank-and-file lawmakers he keeps so firmly under his thumb may be less eager to face questions on the campaign trail this fall about why they reneged on the long-promised income tax rollback, or raised capital gains taxes on retirees' nest eggs, or voted to halve the personal income tax exemption of the working people they claim to represent.

At the very least, forcing lawmakers to vote "yea" or "nay" on each measure will prompt them to think twice before hopping on the tax-and-spend bandwagon. As long as Massachusetts -- like the South in the era of poll taxes and Jim Crow -- remains a one-party state in which all matters of consequence are decided by legislative leaders behind closed doors, that meager level of accountability is about the best taxpayers can hope for. Gov. Jane M. Swift, while softening her no-new-taxes stance, has aptly labeled the Finneran budget an exercise in "hyperbole and false choices."

It exaggerates by calculating a revenue shortfall based not on the current spending level, but an "anticipated" spending level -- a stratagem spelled out for lawmakers last week. Ways and Means Chairman John H. Rogers prefaced his calculation of a $2.7 billion shortfall with the assertion, "If there was no fiscal crisis, stakeholders would expect and anticipate a fiscal year 2003 budget of about $24 billion."

That bit of fiscal legerdemain prompted Barbara Anderson, executive director of Citizens for Limited Taxation, to quip, "My goodness, we should all be grateful that he didn't 'anticipate' a $30 billion budget, or we'd now be hearing the alarm bells going off over a fiscal crisis magnitude of $8.7 billion."

The hyperbole also permeates interest groups' campaigns for higher taxes, now in high gear. One TV commercial in the Massachusetts Teachers Association's current $1.4 million ad campaign alleges that, absent huge tax increases, schoolchildren will be forced to run the cafeteria and drive the school buses.

Talk about false choices.

This week, taxpayers are being asked -- by lawmakers who decline to forgo even the recent dramatic hikes in their expense accounts -- to believe that a $21.3 billion budget would constitute fiscal Armageddon, even though the state operated quite smoothly on that sum just two years ago.

Whatever the real budget gap may be, it certainly is dwarfed by the yawning credibility gap of the Legislature.

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The Boston Herald
Thursday, May 2, 2002

Imminent vote on tax hike
prompts pols' wild spending

by David R. Guarino

State pols might not agree exactly how taxpayers should get the bill, but they now apparently see eye to eye on at least one thing - a sudden, frantic determination to spend.  A day before an expected vote on a massive tax hike package, lawmakers yesterday quietly launched a bid to lay claim to the riches they expect to receive.

From new cash to patronage-laden courthouses to aid to Latino farmers in Western Massachusetts, House lawmakers proposed billions of new spending on pet projects and hometown pork.

In the 1,555 new spending amendments to the state budget, representatives use hundreds of earmarks to divert cash to local projects and drive up spending in countless accounts - all before even casting a single vote for new taxes.

"We'll have all this money, now we have to decide how to spend it," said state Rep. Carol Donovan (D-Woburn), who herself proposed $730 million in new spending in amendments alone.

"What do you expect?" asked House Republican Leader Francis Marini of Hanson. "They don't want to cut. The only thing they want to cut is the paycheck of the person out there who pays the bills."

The amendments to the House's $21.8 billion budget proposal floated in to the House Clerk's office in recent days, piling up as the deadline approached late Tuesday. By yesterday, the unprecedented number of add-ons - going beyond the 1,400 new spending amendments proposed for the huge surplus budgets of the late 1990s - clogged State House photocopiers and jammed up the state's Web site.

A Herald review of hundreds of amendments shows House lawmakers eager to find ways to divvy up the tax pie.

Most of the proposals add controversial earmarks to state accounts, a practice banned in the austere House budget unveiled by Speaker Thomas M. Finneran only days before.

But, even beyond that, the pols unleash a flurry of spending.

Donovan proudly boasts of being one of the top spenders, admitting to her $730 million filing.

The liberal lawmaker said her proposals were meant to chew up much of the $750 million that the state expects to take in if pols approve hike in the sales tax from 5 percent to 6 percent. Donovan's proposals focus mostly on education and health care.

But many more take their cash local for basic, election year pork.

Freshman Rep. Michael F. Kane (D-Holyoke) proposed reserving $125,000 for the Farm Workers Association to help low income and Hispanic farmers in Western Massachusetts.

Veteran Rep. Angelo Scaccia (D-Hyde Park) wants to help funnel hundreds of thousands more into the accounts of Secretary of State William Galvin.

In Wilmington, Democratic Rep. James Miceli earmarked a special $47 million of a $97 million hospital line-item specifically for Tewksbury Hospital in his district while, in another amendment, sought legislative approval to force the MBTA to tear down a maintenance shack at the Wilmington station.

In nearby Lowell, the three-member Democratic delegation hiked the appropriation for the city's Middlesex Northern Registry of Deeds by $1.3 million and pumped another $400,000 into the Lowell District Court accounts.

In Springfield, state Rep. Cheryl Rivera put in amendments to give $100,000 to the Puerto Rican Veterans Association, another $57,750 to the Bilingual Veterans Outreach Center and another $100,000 to the Puerto Rican Cultural Center - all in her hometown.

Chelsea state Rep. Eugene O'Flaherty put in $109,000 for the Life Focus Center in Charlestown, but just in case that didn't fly, he added another $135,000 allotment to the same center from a different state account.

Donovan asks colleagues to pump another $1.3 million into a neonatal home parenting program and $2.3 million more to the city and town libraries. Her proposals bring literacy grant spending from $12 million to $20 million and MCAS test remediation programs from a mere $20 million to $50 million.

"If we have that pool of money, I feel like I can persuade people that this is how we should spend it," she said.

Dozens of other pols also try to filter money back into primary education spending.

Asked if the flood of amendments amounted to a legislative feeding frenzy, Finneran said, "No, no, no, no.

"It's an appropriate member response or an institutional response to try to protect programs and services that the members deem very, very important and that, in normal times, they would protect with great intensity," the speaker said.

State Rep. Christopher Fallon (D-Malden) appeared to be one of the few reps following the calls from House leaders that any amendments be accompanied by cuts of similar size. Fallon, a member of Finneran's Ways and Means Committee, proposed cutting out the $405,000 budget of the Judicial Conduct Committee but, with the cash, proposed dozens of early intervention programs.

"There is money in these accounts we can go after. We don't need to raise money solely through taxes for every single line item that was cut," Fallon said. "I felt it was important to try to help trim some of the fat from the budget."

In the end, though, even advocates of tax hikes said the pols won't get all the want for their pet programs. They said Finneran will draw the line and insist on keeping some deep cuts.

"People will be disappointed, there will be some lost opportunities here," said Jim St. George of Tax Equity Alliance for Massachusetts. 

Elisabeth J. Beardsley contributed to this report.

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The Boston Globe
Thursday, May 2, 2002

For most in House, election is certain
By Rick Klein
Globe Staff

As they prepare to take controversial votes on tax increases today, there's one thing most legislators don't have to worry about: reelection.

About two-thirds of the 144 House members running to keep their seats this fall won't face a a major party challenger, freeing most lawmakers from the fear of losing their jobs. Republicans will challenge just 40 incumbent Democrats. Many of those GOP candidates are untested neophytes, and fewer than a dozen races are expected to be competitive.

Many expect the dearth of opponents to embolden lawmakers to approve new taxes.

Yesterday, the House, by a vote of 125-29, passed a $1 per pack increase to the cigarette tax, which would give Massachusetts the highest tax on tobacco products in the nation and would generate an estimated $225 million next year. More votes are expected tomorrow as House leaders push for as much as $1 billion in tax increases.

House Speaker Thomas M. Finneran put off debate on taxes until this week, when candidates were required to turn in signatures to run for the Legislature. Many saw Finneran's schedule as strategic, allowing incumbents to find out whether they have an opponent before taking up the controversial tax proposals. In 1990, after the Legislature raised the income tax, 18 House members lost their seats.

Without the threat of being swept out of office, tax votes are far easier for legislators to take, said Dennis Hale, a professor at Boston College who specializes in state and local politics.

"They don't feel constrained," Hale said. "If they don't have to worry about facing an angry electorate who can vote for another candidate, then it's much easier to do it."

Despite early noise about gubernatorial candidate Mitt Romney helping Republicans attract legislative candidates, the GOP will not run challengers against the vast majority of the 127 House Democrats seeking reelection.

That means the Republicans have no realistic chance of breaking the Democrats' current 134-22 stranglehold in the House, no matter how many taxes the Legislature raises this year. The same goes in the Senate, where it's unlikely the Democrats' 34-6 advantage will suffer, since only 10 Republicans are headed for the ballot against an incumbent Democrat.

Jonathan Fletcher, executive director of the state Republican Party, acknowledged disappointment at the number of GOP candidates this year. The problem stems from the years in which party leaders failed to lay the proper groundwork, Fletcher said.

"We're not where we need to be as a party at all," Fletcher said.

Still, he added, the GOP will field candidates in 72 House districts and 19 in the Senate, including incumbents and challengers. That makes 2002 the party's best in eight years. Two years ago, the Republicans ran 59 House and 15 Senate candidates.

"Our efforts are going to keep going, especially after these tax things happen," Fletcher said.

Republicans and antitax groups are warning that many House and Senate members who aren't facing opponents now may still have to face write-in candidates if they vote to raise taxes this year. Fletcher noted that a flurry of candidates emerged in the last few weeks alone, as the Legislature prepared for its first major votes on taxes in more than a decade, and hope to run as write-ins.

"This is awful for the people of our state, but potentially, it's good for the Republican Party," he said.

Meanwhile, the Libertarian Party is fielding about 15 candidates of its own, and all can be expected to draw attention to lawmakers who support higher taxes. "We are attempting to run as many candidates as we possibly can, to give people a choice," said Dave Rizzo, a Libertarian spokesman.

Some Democratic incumbents will get pressure from the political left as well, with liberal groups looking to tap into negative sentiment toward House Speaker Thomas M. Finneran. They are recruiting candidates to run on anti-Finneran platforms and are targeting a few close Finneran allies and open seats. However, they said they were still finalizing their lists yesterday.

"We think there's a considerable interest in challenging leadership, bringing in new ideas, and opening up the political process," said Eric Weltman, organizing director of Citizens for Participation in Political Action, which is coordinating an "Overthrow Finneran" campaign this year.

Although the candidates were required to turn in signature papers to run for the Legislature at city and town halls this week, those signatures are yet to be certified, so some of the hopefuls may be disqualified.

About two dozen legislative candidates are planning to seek public financing under the Clean Elections Law, and many will be sharply critical of Finneran's leadership, since the speaker has been the biggest roadblock to the law's full implementation. Massachusetts Voters for Clean Elections will work with candidates and is planning advisory questions in the districts of some lawmakers who oppose the voter-approved law, to draw further attention to the issue.

Most of the jockeying will come in the 16 open House seats created by redistricting, retirements, and representatives running for new positions, said Patricia Schroeder, political director of the Commonwealth Coalition, a liberal political group that tracks legislative races.

"People are jumping in, with several candidates in all of them," Schroeder said, referring to the open seats. "But there's still not a lot of contested races against incumbents, as is typical of every year."

It's a much different climate than in 1990. Then, the Republicans ran candidates in 122 of 160 House seats.

This year, most lawmakers can make their decisions on taxes without worrying about direct political backlash. But that freedom comes at a cost, since antitax sentiments could be minimized on Beacon Hill because of the lack of opposition, said James Glaser, chairman of the political science department at Tufts University.

"Challengers are important to a democracy," Glaser said. "Choice is what a democracy is all about. Choice brings accountability."

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The Boston Globe
Thursday, May 2, 2002

Mass. House OKs $1-per-pack hike in cigarette tax
By Rick Klein
Globe Staff

The House yesterday overwhelmingly approved a $1 per pack increase to the state cigarette tax, easily surpassing the two-thirds threshold needed to override a promised veto by Acting Governor Jane Swift and positioning Massachusetts to install the highest tax on tobacco products in the nation - one that would generate an estimated $225 million next year.

But House leaders acknowledged that it may have been the only easy tax vote members will take this week.

For the first time since the Dukakis era, the Legislature faces major decisions on taxes. Although consensus has been reached on about $750 million worth, House Speaker Thomas M. Finneran is trying to find agreement on several hundred million dollars more - possibly in a single package.

"People are all over the place," said House majority leader Salvatore F. DiMasi, a North End Democrat. "When you try and put everything together, in a package, it becomes even more tenuous. It's very tricky. Right now, there is no package. The package is being developed."

Finneran is promising a marathon session of tax debate today. House members will meet in caucus at 10 a.m. for a final round of negotiations before all of the tax issues are thrown to the body at large.

"If we don't go with a package, it'll be one tax at a time, up or down," said House Taxation Committee chairman Paul C. Casey, a Winchester Democrat.

The tobacco tax increase passed without debate by a vote of 125-29. Eight Democrats joined 21 of 22 House Republicans voting in opposition. The measure would place the cigarette tax at $1.76 a pack in Massachusetts - well above New York's $1.50-a-pack tax, now the nation's highest.

House leaders said the bill could be scaled back today, with a final version adding only 50 or 75 cents to the current 76-cent state levy. But unlike proceeds from the current tax, money from the increase would not automatically fund health-care programs under the proposal that passed yesterday.

House assistant minority leader Bradley H. Jones Jr. predicted the new tax would help balance New Hampshire's budget by driving Massachusetts smokers across the state line to buy cheaper cigarettes. He and other Republicans maintain that the state doesn't need new taxes to cope with a $2 billion budget gap in the fiscal year that begins July 1.

"This crisis, if you want to call it that, is able to be solved through a combination of cuts, existing revenues and reserve funds, and some new revenues," said Jones, who represents North Reading.

Republicans propose to collect those new revenues through the establishment of casino gambling in Massachusetts and limiting state Lottery payouts, but those ideas have gotten a cool reception from House Democratic leaders. Yesterday, House Ways and Means chairman John H. Rogers rejected the Lottery concept in a letter to his colleagues, writing that it would "wreck the most successful state lottery in the world."

Finneran and his top deputies met behind closed doors into the night yesterday, periodically summoning selected House members and outside budget analysts for their input. In an indication of how elusive consensus has been, House leaders polled all members for the third time in four days.

Casey said the original list of more than 150 revenue sources has been narrowed to less than 10 that will receive serious consideration today. On top of the cigarette tax, there is strong support in the House for freezing the income tax rate at 5.3 percent and for a proposal to tax capital gains like regular income, he said.

Those proposals, plus a tax amnesty program, would free up just $750 million - well below the $1 billion that many members feel is necessary to ease the fiscal crunch, Casey said. The next tier of taxes could include a repeal of the deduction for charitable contributions, a 1 percentage point increase in the sales tax, imposing a sales tax on alcoholic beverages or halving the personal tax exemption.

Jones mocked the Democrats' inability to find agreement.

"There's consensus for doing something, but that's where the consensus breaks down," he said. "It's not really a tax splurge. It's more like a sputter."

Globe correspondent Chris Tangney contributed to this report.

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The MetroWest Daily News
Thursday, May 2, 2002

Pols ponder tax hike fallout
By Michael Kunzelman

BOSTON - Although he is facing a Republican challenger in the fall, state Rep. Stephen LeDuc, D-Marlborough, insists he isn't concerned that voting to raise taxes could carry a steep political price.

Freezing the income-tax rollback and raising the cigarette tax will help offset deep cuts in school funding and other local aid, LeDuc said yesterday on the eve of the House debate over potential tax hikes.

"I'm trying to be responsible," LeDuc said. "We in the Legislature have a responsibility to raise revenues and minimize as much pain as possible."

LeDuc may be the only House member from MetroWest who is facing a Republican challenger on the fall ballot, but other incumbents appear to be concerned about the possible backlash from raising taxes in an election year.

House leaders postponed the debate on tax increases from yesterday until today because they apparently had difficulty reaching consensus on which measures should be included.

Tellingly, yesterday also was the deadline for candidates to file nomination papers with town and city clerks.

"Some members may have been waiting to see if they had opponents," said state Rep. David Linsky, D-Natick.

Rep. Patricia Walrath, an Acton Democrat who serves on House Speaker Thomas Finneran's leadership team, expressed doubt that any lawmakers would vote against raising taxes simply because they fear a backlash from voters.

"There's always political prices to pay for anything we do," Walrath said. "If we have an opponent, fine, but we still have to stand up for what we think is the right thing to do."

Finneran and his deputies aren't applying pressure to support a particular slate of tax hikes, Linsky and other rank-and-file lawmakers said.

"They're not twisting arms," Linsky said. "At this point, there really is no leadership tax package."

State Rep. Karen Spilka agreed.

"I personally haven't gotten any pressure," the Ashland Democrat said. House leaders made another round of telephone calls yesterday to poll members on proposed tax increases.

State Rep. Lida Harkins, who polled nearly two dozen members yesterday, said there didn't seem to be much support for raising the sales tax.

"But people still wanted to see the hard numbers," the Needham Democrat said.

The House also is weighing changing the capital-gains tax formula, raising the cigarette tax by $1 and freezing the income tax, which is scheduled to roll back to 5 percent.

Those three options had widespread support Tuesday in a poll of House members, according to Harkins.

"We have quite a large menu of options," she said. "I think we're just trying to get a package that a majority of people would support."

Lawmakers appear to be split on the total amount of money that needs to be raised.

Estimates range from about $400 million to $1 billion. LeDuc said he falls on the low end of that spectrum.

"I think there's a difference of opinion on how much money we should raise," he said.

Some advocates fear that the House isn't prepared to raise enough revenue to restore all the cuts to human-service programs.

"We always seem to be the last priority," said Eric Masi, president and CEO of the Wayside Youth and Family Support Network in Framingham.

"I think there's going to be enough (funding) for education and local aid, but whether they raise enough revenue to restore cuts to human services is still a concern."

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The Boston Globe
Thursday, May 2, 2002

Random musings
By Jeff Jacoby

* * *

If Massachusetts legislators raise taxes, they won't just be showing disdain for the 1.5 million Bay Staters who voted by a wide margin to lower them. They will also be demonstrating contempt for those who play by democracy's rules.

It was not easy to put Question 4 - the income-tax rollback - on the 2000 ballot. Supporters had to research the law and draft an initiative that would survive legal challenge. They had to spend thousands of man-hours collecting tens of thousands of signatures, then transport petitions to and from town halls all over the state. They had to combat well-heeled opponents - the high-tax lobby spent more than $3 million - and out-argue critics in the press and on Beacon Hill. They had to develop a ''vote yes'' campaign, pay for advertising, and make their case to the public.

At every step, Question 4's backers were outmanned and outshouted. But they believed the voters would be with them on Election Day. And they believed that once the voters spoke, their decision would be final. They did everything that Massachusetts law asked of them. They played by the rules. To cheat them of their hard-earned accomplishment now would be a betrayal of the worst sort and a stab in the back of Massachusetts democracy.

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The Eagle-Tribune
Lawrence, Mass.
Thursday, May 2, 2002

There's no reason for a tax hike

OUR VIEW
Legislators must have the courage to get through tough times without tax increases.

Legislators in the Massachusetts House of Representatives are poised to hit residents with a massive tax increase of up to $1.5 billion.

The people of this state should not stand for such an outrage.

Led by House Speaker Thomas M. Finneran, the Legislature wants to hit taxpayers on all fronts to avoid making tough decisions on budget priorities. An economic downturn has converted years of state budget surpluses into a shortfall estimated at $500 million this year and more than $2 billion next year.

This is a state in which lawmakers can call a $20.3 billion budget "bare bones." We are among the more highly taxed, excessively serviced citizens in the country. Yet it still is not enough to satisfy some. More than 1,000 people rallied at the Statehouse earlier this week protesting proposed budget cuts.

If lawmakers were impressed by that showing, wait until they see the protests when people find out how much their proposed tax increase will cost them.

House leaders want to freeze the income tax rollback at 5.3 percent. This is the rollback of "temporary" income tax increase put in place in the late 1980s. Voters demanded the rollback. The House wants to ignore their wishes.

Some legislators also want to cut the personal tax exemption in half from $4,400 to $2,200. Some want a capital gains tax increase to 5.3 percent. There will be a 50-cent hike in the cigarette tax to $1 a pack.

Still, this will not be enough. Legislators will seek more ways to extract money from us.

It's a shakedown of unprecedented proportion. And believe this: When lawmakers have wrung every last penny from our pockets and the recession ends, they will not be nearly as quick to lower our taxes as they were to raise them. Once the Legislature gets its hands on our money, its grip is iron.

The budget "crisis" is no crisis at all. It is a temporary setback. Temporary cuts in all programs, spending from "rainy day" and tobacco settlement funds could see us through until better times allow us to be more generous. As soon as the economy recovers, we can restore those funds.

All it takes is the political courage to say "No" to interest and advocacy groups. It's the kind of courage we ought to demand of those we elect to public office.

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