In the News

Tax Alert
Volume 6 Issue 7
April 1st , 1999

Say it ain’t so Governor

Louisiana Governor Mike Foster (R-La.) said yesterday "Quite frankly… even before I was in the political process I did not feel like I was overtaxed." ---   opposes future tax cuts.

He went on to further shock the state and country by telling 350 business people at The Chamber of Greater Baton Rouge meeting that, "most people I know in Louisiana would prefer to be proud of their state (rather) than to get into a big tax-cutting mode. I have not been a big advocate of tax cutting." The governor signed the Taxpayer Protection Pledge in 1995 promising "to oppose any and all efforts to raise taxes." The state trimmed $100 million in sales taxes since he took office over his objections and cut inheritance and
payroll taxes a little bit.

He was elected on an anti-tax, anti-spending platform with the help of taxpayer activists and fiscal conservatives alike. Any move to turn his back on those constituents could spell political suicide in his upcoming election.  For his comments the Governor has been nominated by state and local tax groups for the April "Enemy of the Taxpayer" award.

Nevada’s Charles Muth reports, "Hot Damn! A Principled Republican!"

"As you are reading this, Gov. Kenny Guinn (R-Nev.) is vetoing his first piece of legislation -- and it is his own bill. Yes, that's right. Guinn is nullifying Assembly Bill 105, which contains a fee increase for the state Real Estate Division. So why use his red pen on such a seemingly nondescript bill, and one of his own? Because, sources say, Guinn believes his no new taxes pledge in his State of the State speech applies to fees, too. In fact, he apparently was furious when he discovered the measure had slipped through the cracks. The significance of this pledge, should he keep it, cannot be underestimated. Scores of bills each session contain fee increases, but no-new-taxing governors always have maintained that fees don't count. Well, Guinn is saying emphatically, they count with him."

For his actions the Governor has been officially nominated for the monthly "Friend of the Taxpayer" award, congratulations!

D.C. Budget Matters--submitted by David W. Kralik

As required by law, Mayor Anthony Williams of Washington, D.C. has outlined his FY 2000 budget priorities to the City Council and it includes tax cuts for the first time in many years.

While overall spending does unfortunately increase, it does so at a rate far less than before, only 2.6 percent and namely in the areas of public safety and education, which have declined. The $4.64 billion budget begins to end years of financial havoc and debts that former Mayor Marion Barry created by calling for $66.7 million in tax cuts. In addition to calling for the sale of the failed University of the District of Columbia and opening up city services for competition, the budget will reduce filing thresholds; eliminate or reduce professional license and arena fees; reduce the commercial real property tax in the District's economic development zones; and eliminate the sales tax on Internet access, a national trend thanks to the help of U.S. Rep. Chris Cox (R-Calif.) and his Federal Internet Tax Freedom Act.

While not exactly perfect, this budget is a step in the right direction and if the City Council agrees, it then goes before Congress for a final vote. For more information on the D.C.budget, go on-line at www.dccfo.com.

Arkansas rejects tolls…for now!

The Arkansas State Highway Commission’s decision to rescind its previous order to toll interstate highways was announced on 3-31-99. Jennifer Mathews of the Stop Interstate Tolls coalition (ATR is a member) announced, "The Highway Commission has heard the message loud and clear. Our latest public opinion survey showed that nearly 70 percent of Arkansas voters opposed interstate tolls. Their voice was heard."

Montana Governor strays off the ranch---nominated for Award

Gov. Marc Racicot (R-Mt.) has been nominated for the "Enemy Award" after repeatedly damaging taxpayer efforts to implement CI-75. This initiative, approved by voters last November 51 to 49 percent, requires a public vote for state and local governments and school districts when considering a raise in taxes. Furthermore the Governor vetoed a business property tax cut, refuses to support paycheck protection and supports imposing a sales tax.

Mississippi news and notes

Kim Gallaspy of the Mississippi Republican Party informs us that Lt. Gov. Ronnie Musgrove (D) worked to kill a tax cut supported by Gov. Kirk Fordice and passed by the House. In a statement that would make Gov. Foster (R-La.) proud he said, "The tax cut proposal would have helped too few, we don’t want to be last in roads."

Lt. Gov. Musgrove joins Gov. Foster (R-La.) and Gov. Racicot (R-Mt.) as April 1999 nominees of the "Enemy of the Taxpayer" award. The winners will be announced on the 15th.

Fax/e-mail or call ATR with your nominations or votes for heroes and enemies of the month to Damon B. Ansell.