Citizens for Limited Taxation & Government
18 Tremont Street Suite 608 * Boston, MA 02108
Phone: (617) 248-0022 * E-Mail: cltg@cltg.org
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*** CLT&G Update ***
Thursday, March 6, 1997

Today I did another conference call with Grover Norquist's Americans for Tax Reform, which regularly connects us with taxpayer groups all over the country. Today's D.C. guest was Rep. Tom Delay (R-Texas), and he had an interesting warning.

He is concerned about a proposed adjustment to the Consumer Price Index (CPI), which has been publicized as a "more accurate" way to adjust the CPI in order to hold back the growth in some entitlement spending (eg., Social Security) that is adjusted annually for inflation. The intent is to make it easier to balance the budget as spending is slowed.

However, Rep. DeLay warns that "40 percent of the savings is a tax increase", as inflation adjustments in taxes (eg., the indexing of personal exemptions) are changed.

He said the recommended one percent cut in the CPI would mean a $420.00 tax increase for a family of four.

We must watch this closely: it is easy to support the cut in entitlements, but in the end they will just take that money, along with our higher taxes, and spend it (to alleviate the pain of the entitlement cuts), because that is what they do.

Grover and Rep. Delay also talked about the scheduled April 15th vote in the House for the supermajority requirement for tax increases; it is also expected that there will be House vote on the balanced budget amendment soon after.

Delay mentioned, rather casually, that it would be great to get rid of withholding, and I immediately asked if he would file that bill and make it part of the Republican agenda. He laughed and said maybe he would, but I had the impression he was surprised when I and the other taxpayer groups took him seriously and were looking for action.

If we could have just one taxpayer wish, that would be it. Make the presently apathetic public write a check in April to the federal government, instead of looking forward to their refund from their good friend Uncle Sam.

Barbara Anderson