The Small Government Act

CNSNews.com:
Effort To Abolish Income Tax Still Alive In Massachusetts

by Robert B. Bluey, October 29, 2002

(CNSNews.com) - Michael Cloud, a Libertarian Party candidate for Massachusetts' U.S. Senate seat, is convinced that "the establishment" is afraid of a ballot measure in his state that would abolish the income tax, thus eliminating about $9 billion from the state budget.

Republican and Democratic gubernatorial candidates are denouncing ballot question No. 1; lobbyists fear its potential impact; and the media is giving the issue little coverage. But despite all this, Cloud remains confident that more than half of all Bay Staters will vote yes on Nov. 5.

The idea of cutting taxes in a state derisively dubbed "Taxachusetts" might confound some outside observers, Cloud said. But based on internal polling, the measure is supported by nearly 45 percent of voters, he added. That number is slightly higher than it was in August when 40 percent supported the ballot measure, according to a Boston Globe poll.

But since late summer, when Cloud said people began paying attention to the issue, the measure has received little press or television coverage -- except from those critical of it. The Boston Globe "strongly recommended" that voters reject the measure in its latest editorial on the matter Monday. The Boston Herald has also opposed the idea.

Cloud said he is not just frustrated by the Globe and Herald editorials opposing the referendum. The lack of coverage by the newspapers and the state's major television outlets has been particularly frustrating, he said.

The Libertarian Party became so irritated that last month gubernatorial candidate Carla Howell asked the Federal Communications Commission to investigate five television stations for refusing to include her in debates with Republican Mitt Romney and Democrat Shannon O'Brien.

Thanks to public pressure, Howell ended up on the debate stage without the help of the FCC. In those appearances, she has raised the income tax question, which is at the heart of her campaign. While the lack of news coverage and limited amount of debate has been disappointing, Cloud said "the establishment" is beginning to worry.

"It's shaking things up," he said. "The fact that the Globe had to write three editorials against us tells me that they're scared. That's good. They should be scared of the people in this state."

Calls to the Globe and Herald seeking comment about Cloud's criticism were not returned.

While the Globe has opposed the ballot measure in editorials, supporters of the initiative opened Sunday's newspaper to find columnist Jeff Jacoby making the case for the end of the income tax.

Now Cloud hopes Jacoby's column in the state's largest newspaper, along with $150,000 in print and radio advertising, will propel enough voters to the polls next week to eliminate the income tax.

John Portz, a political science professor at Northeastern University, said the measure could attract more support than some figured.

"Ask anybody if they would like to pay fewer taxes and most people would say yes," Portz said. "There are those voters out there who are really angry, but I don't think they make up a majority when you talk about something this dramatic."

Part of the debate centers around the impact the measure would have on state government. Cloud estimates the average citizen would stand to get back $3,000 each year if it was approved. And even though the loss of a state income tax would cut $9 billion from the $23 billion state budget, he said a combination of private enterprise and other taxes would make up for the deficit.

"We've doubled the size of state government spending since [former governor] Michael Dukakis left office a little more than 10 years ago," Cloud said. "But personal income hasn't doubled, the quality of education hasn't doubled, the street services haven't doubled. Our state legislators are tax pigs."

Critics of the effort claim eliminating the income tax would do little to help the middle class. Michael J. Whiteman, an accounting professor at the University of Massachusetts at Amherst, called the initiative a "fiscally irresponsible" and "idealistic" effort that would benefit the rich.

Cloud, who has heard that charge before, said blue-collar workers make up most of the support behind the initiative. While he acknowledged that not everyone would receive $3,000, he said cutting the income tax would be equivalent to a raise of 5.3 percent, the current tax rate.

Whiteman said the measure might look good on paper, but it would not work in reality. He pointed to a referendum in 2000 when voters chose to lower the state's income tax rate (Massachusetts has a flat-tax system) from 5.9 percent to 5 percent. The legislature stopped the measure from taking full effect last year, leaving the income tax at 5.3 percent.

The legislature, fearing a shortfall of revenue, could not afford that proposal, which makes this measure even more unlikely, Whiteman said.

"I think they're well intentioned, but somewhat misguided," he said. "I think it would provide a much greater benefit to higher-income individuals and create chaos for state government. You have to curtail services before you curtail funding for those services. Otherwise you'll have a monumental problem."

Howell, Cloud and other Libertarian Party candidates do not see it that way. They believe the state is well positioned to handle the reduced revenue, and if not, then legislators will have to make do with the remaining $14 billion.

Even if the ballot measure does not pass this year, Cloud said the Libertarian Party is ready to mount another campaign to gather 120,000 signatures to get it on the ballot in the future. He is not willing to concede yet, though, warning that "the establishment" could be in for a surprise on Election Day.