Citizens for Limited Taxation & Government
18 Tremont Street #608 * Boston, MA 02108
Phone: (617) 248-0022 * E-Mail: cltg@cltg.org
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*** CLT&G Update ***
Friday, April 4, 1997
Greased Skids Tax-Grab passed 38-1 in Senate
The Boston Herald
Friday, April 4, 1997
Pols eye tightening regulations to limit taxpayer rebates
By Carolyn Ryan
It'll be tougher for taxpayers to get money back from the state in future years, thanks to a measure pushed through the Legislature by Democratic leaders and Gov. William F. Weld.
This year and next, taxpayers are receiving small rebates from the state's overflowing rainy-day fund, which is set aside for fiscal emergencies.
But yesterday the Senate tacked a rider onto the budget bill that will increase the amount of money equired in the rainy-day fund before a tax give-back will be triggered. [1]
The House has already passed a similar bill and Weld supports it.
Several Republican senators and Sen. Steve Panagiotakos (D-Lowell) objected to the swift passage of the tax change, which never received a public hearing.
“We should make an informed decision,” Panagiotakos said.
“Some people say a tax cut of $43 doesn't mean anything, but it does mean something to a lot of people in our districts.”
Last year a tax break of about $80 per family and $40 for an individual was approved. This year's tax break—which residents will receive when they file their returns next spring -- totals about $48 for a family and $24 for an individual.
A move to drop the tax change from the budget bill failed on the Senate floor, 33-6 . [2] The supplemental budget was passed, 38-1.
Sen. Robert Hedlund (R-Weymouth) voted against it [3].
“This will assure we never give any more money back to the taxpayers,” Hedlund said.
Under the old formula, a tax break was triggered when the rainy day grew to 5 percent of all tax revenue.
The change will raise the threshold for a tax break by about $300 million, by triggering it when the fund reaches 5 percent of all revenues, including federal assistance and fees.
Senate leaders—including President Thomas Birmingham and Ways and Means Chairman Stanley Rosenberg—say the move will allow the state to sock away more money for economic downturns.
Citizens for Limited Taxation and Government director Barbara Anderson had tried to lobby senators against the measure earlier in the week, but failed [4].
The supplemental budget passed by the Senate yesterday also includes $15 million for county sheriff budgets, $3 million for children's health care and $2 million for AIDS treatment.
The House and Senate must agree on a final version of the bill, and Weld has pledged to sign it.
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[1] Giving us back *any* of our hard-earned money must have *killed* them! This had to be “adjusted”—before we got too used to it—even if that meant breaking yet *another* promise.
[2] Don't you just love that phony butt-covering political posturing? Six senators first object—then go along (to get along) with the leadership and vote to keep our money!
[3] Only Sen. Bob Hedlund—without whose heroic efforts we would not have at least the all-important rollcall vote he forced—stuck to his principles, demonstrated integrity, and went down fighting for us—
[4] Except, of course, for our own ever-vigilant Barbara Anderson!
If you would like more information or to read yesterday's debate, go to our homepage *[note our *new* address]* at:
http://cltg.org
Chip Ford
Co-Director