A PROMISE TO KEEP: 5%
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A Ballot Committee of
Citizens for Limited Taxation & Government
PO Box 408 * Peabody, MA 01960
Phone:(617) 248-0022 /(508) 538-3900 E-Mail: cltg@cltg.org
Visit our web-page at: http://cltg.org
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*** Promise Update ***
Friday, September 5, 1997

News Release
For Immediate Release
September 5, 1997

Contacts for the duration of petition drive:

On the issue and petition drive:
Chip Ford -- (978) 538-3900
On the issue:
Barbara Anderson -- (617) 248-0022
On the petition drive:
Chip Faulkner -- (617) 248-0022


Promise Petition Will Keep State's Word

The ballot committee of Citizens for Limited Taxation & Government (A Promise to Keep: 5%) will petition this fall for its "Initiative Petition for a Law to Roll Back the State Income Tax Rate to 5% by the Year 2001."

As soon as the petitions are printed by the Secretary of State, Promise volunteers will be on the streets, at post offices, banks, and stores of their communities through November 19th, when at least 64,929 valid signatures must be filed with city and town halls.

Following the voted preference of CLT&G members, the Promise petition will roll back the present 5.95 percent state income tax rate to the 5 percent that was promised in 1989, when the Legislature "temporarily" increased the rate because of a state fiscal crisis. The crisis is over, the deficit bonds will be paid off this fall, and the time for the state to keep its promise has arrived.

Nevertheless, the tax rollback will not be done immediately. It will be phased in over three years. The income tax rate will be 5.60 percent in 1999, 5.30 percent in 2000, and 5 percent in 2001. This will leave room for a small tax cut that is also long overdue: Equalization of the rate on dividend & interest income (so-called "unearned income"), which is being petitioned for by another organization.

No reductions in services are expected from the rate reductions, as present and expected state surpluses should be enough to cover the phase-down period, and the Commonwealth has four years to prepare to live without huge annual increases in spending.

Co-Chairman Chip Ford stated the theme of the Promise campaign: "If this law passes, finally state government will have kept a promise, even if it took the people to hold the politicians to their word."

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