Citizens for Limited Taxation & Government
"The Commonwealth Activist Network"
18 Tremont Street #608 * Boston, MA 02108
Phone:(617) 248-0022 * E-Mail: cltg@cltg.org
Visit our web-page at: http://cltg.org
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*** CLT&G Update ***
Thursday, March 26, 1998

Greeting activists and supporters;

Talk about out of step—if not outright disingenuous— read how the Republican Senate Minority (cheer) Leader, Brian Lees, rationalizes his support of what The Boston Herald termed "a tax increase by stealth" and The (Lawrence) Eagle Tribune (below) terms "snatching away a big refund to taxpayers."

We expect this kind of foolishness from the tax-and-spend Democrats—but when it spills from the lips of an alleged Republican . . . well, you’ve got to wonder where the alleged difference is between them.
If there is any doubt why he’s the *minority* (cheer) leader, or if he’s in bed with the Democratic leadership, ask yourself where along the way he picked up House Speaker Finneran’s phraseology. (". . . increasing the amount of the rainy day fund was not only appropriate, but was a prudent and fiscally responsible step.")

And when did real Republicans stoop to excusing tax increases by using the "for the children" scam (". . . an increase in funding to ensure that the Commonwealth’s children are covered by insurance is a form of tax increase?")

If Brian just opened his eyes and closed his mouth he’d realize that all around him it has been firmly established that raising the ceiling on the "rainy day" fund was robbing the taxpayers of an automatic tax cut. That battle is over and we won it. Brian, the truth will set you free; try it some time!

He doesn’t have to continue defending his actions and apologizing for Finneran and Birmingham. Why doesn’t he let it drop and hope it goes away? Brian, you’re only reminding us of your complicity. We are not stupid.

I think we can better understand his problem when we look to Brian’s signature. We know we have Senate President Thomas Birmingham (D-Chelsea) and House Speaker Thomas Finneran (D-Mattapan). Now we discover that, in Brian’s mind, we have a minority leader with a wishful (R-Boston) tag! Although he allegedly represents the 1st Hampden and Hampshire senatorial district and legally resides in East Longmeadow—the minority (cheer) leader lists his address as "Boston".

He sure is working awfully hard to be accepted by the Good Ole Boys club! But, for all his effort, is he ever looking foolish.

Chip Ford—
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The (Lawrence) Eagle Tribune
Saturday, March 21, 1998

Editorial: Give us our money back

THE ISSUE
Speaker Thomas M. Finneran offers a tax cut to taxpayers while taking away a guaranteed refund.

OUR VIEW
Surplus revenues should be returned to those who generated them - the taxpayers.

House Speaker Thomas M. Finneran, D-Boston, is once again trying to pull the wool over the eyes of his favorite dupes - the Massachusetts taxpayers.

The current sleight-of-hand concerns what to do with the $600 million to $800 million surplus in tax revenues the state expects to generate this year.

Watch closely as Speaker Finneran extends a tax cut in one hand, while snatching away a big refund to taxpayers with the other.

Here’s the careful finger work behind the illusion:

There is a law that says any money in the state’s stabilization, or "rainy day" account, over $950 million must be returned to taxpayers.

The stabilization account currently holds about $800 million.

The state, after spending on capital projects, expects to pump between $100 million and $500 million into the stabilization fund, well over the $950 million cap that generates a refund to taxpayers.

Finneran extends to the taxpayers a long-sought reduction in the state’s income tax rate from 5.95 percent to 5.7 percent. He also offers a reduction in the tax on dividends from 12 percent to 5.7 percent. That saves taxpayers $302 million this year.

But at the same time, Finneran raises the cap on the stabilization fund by $500 million to $1.45 billion. Net loss to the taxpayers this year: about $200 million.

Presto, taxpayers fleeced again!

The House approved Finneran’s bill to do this last week. The increase in the stabilization fund cap was never even debated, probably because many of our solons never even knew it was there.

It’s a classic example of how Beacon Hill insider politics works and it is appalling. The leadership throws a bone to the taxpayers while grabbing the steak for themselves.

And Speaker Finneran has the gall to call this prudent fiscal management. The state needs the money in case the economy sours, he says. Of course, the taxpayers don’t need the money. They’d just blow it anyway.

Gov. A. Paul Cellucci has vowed to veto this bill, as well he should. He should veto any bill Finneran & Co. send to his office that does not return the surplus to its rightful owners - the taxpayers who worked to generate it.
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The (Quincy) Patriot Ledger
Saturday, March 25, 1998

Readers’ Opinions
Response to Barbara Anderson column

As an admirer of both Barbara Anderson and the group she represents, Citizens for Limited Taxation and Government, it upsets me to have to write this letter. But after reading Anderson’s recent column in The Patriot Ledger, I feel I must respond. I think it is about time Anderson is fair.

There was no "secret tax hike" last year. Yes, the Legislature did increase the amount of the state’s rainy day fund, but who among us would not agree that this is a good thing? Furthermore, we, the Republican legislators, did not concede to, or as she says, "make a deal" with the Democrats on this issue. Many Republicans, Democrats and Independents believe and continue to believe that increasing the amount of the rainy day fund was not only appropriate, but was a prudent and fiscally responsible step.

Additionally, increasing the rainy day fund cannot, by any stretch of the imagination, be considered a tax hike. By this reasoning, any spending would be considered a tax increase. Does Anderson honestly believe that an increase in funding to ensure that the Commonwealth’s children are covered by insurance is a form of tax increase? The increase in the rainy day fund was simply a similar increase in funding for an important public program.

Last year, many of us told Anderson, who was pushing this point then, that she was wrong and she continues to be wrong now. The increase in the rainy day fund was not a tax increase.

Sen. BRIAN P. LEES
Senate Minority Leader
Boston

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