A PROMISE TO KEEP: 5%
A Ballot Committee of Citizens for Limited Taxation

 

Associated Press
Friday, October 13, 2000

Governor, state treasurer spar on tax cut 
By Steve LeBlanc


BOSTON -- In a possible preview of the 2002 governor's race, Treasurer Shannon O'Brien slammed Gov. Paul Cellucci's proposed tax cut, saying it ultimately would cost taxpayers by making it harder to pay down the state's escalating debt.

"We've doubled our debt in the past 10 years from $6 billion to $12.4 billion," O'Brien said yesterday during a sometimes testy half-hour debate with Cellucci at WBZ-TV, Channel 4. "If we don't pay it down now, we will be paying billions more in the long term."

Cellucci rejected O'Brien's argument, saying there is no guarantee the Legislature would spend the extra money to bring the state debt under control. He said the $1.2 billion the state will lose under the cut would be better spent by families.

An average family of four would save about $400 under the cut, Cellucci said. The savings is closer to $200, O'Brien countered.

"Why don't we trust that family to make decisions about that $400 rather than trusting the government?" Cellucci said.

The final verdict on Cellucci's plan to reduce the state's income tax rate from 5.85 percent to 5 percent is in the hands of voters. The proposal -- known as Question 4 -- is one of eight questions on the statewide ballot Nov. 7.

To help win public support for the tax cut, Cellucci offered to debate top Democrats -- all of whom say the tax cut would hurt the state's ability to pay for education, health care and other priorities.

O'Brien and other opponents have their work cut out for them. Early public opinion appears to be running in favor of the tax cut. A recent poll by the University of Massachusetts showed 72 percent of voters support the question.

The Campaign for Massachusetts' Future, which opposes the question, has raised about $972,880 so far and plans to take their message to the airwaves in the closing weeks of the campaign.

Cellucci's Tax Rollback Committee, which has raised about $657,271 so far, also plans to run television ads before the election.

O'Brien likened the state's rising debt to a credit card. She said she will be required to issue $3 billion in debt this year, equal to about $500 for every man, woman and child in Massachusetts -- or about $2,000 for a family of four.

"The dirty little secret is that the debt we're issuing right now will increase their credit card," O'Brien said. "You're putting $200 into their pocket, yet taking $2,000 out and putting it on the credit card."

Cellucci said there are other reasons to cut taxes. He said it will make Massachusetts more competitive with other states with lower taxes. He also said it would force the Legislature to live within its means.

A tax cut would also help lawmakers live up to the pledge they made when they raised taxes during the state's fiscal crisis of the late 1980s, Cellucci said. Lawmakers promised to roll the tax back to 5 percent once the crisis passed, he said.

"The people of this state have waited 11 years for the promise to be kept. I don't think they should have to wait another five or six or 10 years," Cellucci said, pointing to the $4 billion Massachusetts has in reserves as more proof the state can afford the tax cut.

Cellucci last week debated the tax cut with former Democratic National Party Chairman Steve Grossman, who has said he plans to run for governor in 2002. O'Brien has also been mentioned as a possible Democratic gubernatorial contender.

Cellucci has scheduled two more tax cutting debates against Democrats said to be eyeing the corner office in 2002: House Speaker Thomas Finneran (Oct. 21) and Senate President Thomas Birmingham (Oct. 30).


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