No on 1! No on 1!

Vote “No!” to Carla Howell’s scheme on
Tuesday, November 5, 2002

Libertarian candidate Carla Howell took out a full-page ad (Boston Globe, October 2) in which she claimed to present "the uncensored facts about ... ballot question 1." On more than one point she misrepresented facts to the point of fraud. I call on the attorney general to investigate Howell as we would anyone else using false advertising to mislead consumers, and I urge everyone (aside from the state's richest 2%) to vote "No on One." Let's defeat it 98% to 2%!

(The United for a Fair Economy "No On Question 1" web page provides information and resources in both Spanish and English on Question 1, as well as statistical information on the large-scale re-distribution of American wealth in recent years. Paul Krugman, Professor of Economics and International Affairs at Princeton University, has written extensively on the topic of income distribution. See, for instance, this essay in American Prospect magazine. Hear Dr. Krugman discuss his research with Dick Gordon on "The Connection.")

Following is a list of inaccurate statements about Question 1 with some rebuttal.

Carla’s World

The Real World

The main part of the ad, apart from a huge photo of Howell herself, is the section "Why have these facts been kept from you?"—implying that you should vote for small government because it has censored these "facts."

Of course, no one did anything of the sort, as the Globe's acceptance of the ad proved. The fact is, this anti-tax rhetoric has been raised before, debunked before, and defeated before. It barely qualifies as news anymore.

But in case you're wondering, Massachusetts taxpayers pay less in taxes per person than many so-called "low tax" states because our already low sales tax (5%) exempts basic needs like food, medicine, and everyday clothes — unlike Tennessee or Texas residents, who pay 8% or more on everything.

 

A prominent "fact" Howell cites is that Question 1 would "give back $3,000 each to 3.000,000 Massachusetts workers." She repeats that point more forcefully later, saying "Do you have a business? Every customer who walks in your door will have $3,000 more each year to spend with your business."

As they say, there's lies, damned lies, and statistics. The trouble with Howell's statistics is that they're lies.

The figure of $3,000 is an average, not a typical amount. Not everyone will get that much, and most people will receive less. In 2001, you would have to have made over $53,550 to reach that figure—and that's after your exemptions! We're really talking about $60-70,000 incomes here!

As usual, a tax cut will benefit the rich most, especially since they will be the ones best able to privately replace lost services. Howell even admits this point, but then goes back to falsely using the average savings with the words "each" and "every."

And as for the claim that taxpayers will have extra money to spend, Howell neglects to mention that since the tax cut favors the rich, who already have a lot of spending money, not much of those savings will trickle down to local businesses.

 

Howell criticizes Massachusetts government for being too large and charges that Massachusetts taxes are out of control.

In fact, for 2001, Massachusetts had the 13th lowest tax burden (state and local) of all 50 states and the District of Columbia, according to The Tax Foundation. Our toal tax burden (state and local taxes paid as a percentage of income) was 9.6%— lower than many tradionally conservative states like Montana (9.8%), Arizona (10.0%), Kentucky (10.4%), and Utah (11.1%)— considerably below the national average of 10.1%. Even our total tax burden of 33.6%, including federal taxes that would be untouched by Question 1, is in line with the national average (32.8%) and better than most other states in the region, like New Jersey (35.3%), New York (35.6%), or Connecticut (37.8%). Even "no tax" New hapshire is only slightly better at 32.7%

So why do all these people moan about how high the taxes in "Taxachusetts" are? Where do they get their "facts"?

 

Howell asserts that eliminating the income tax would lead to the lowering of other taxes.

Since Howell offers no proof of this highly questionable claim, it's hard to refute; however, common sense suggests that the opposite will be true, and much of the savings enjoyed by taxpayers will be eaten away by higher property taxes, car registration, sales taxes, etc.

 

Howell claims that her proposal would lead to more that 300,000 new jobs in Massachusetts.

Her "fact" that this would lead to 300,000 new jobs is not a fact, but a projection, and a rosy one at that. Businesses look at many factors when deciding where to locate, and taxation is only one — a minor one, too, if you listen to the CEOs. More important are quality of life issues, such as education, the arts, and the environment — exactly the sorts of things that would be hurt by Howell's scheme.

It's just as likely that there will be fewer jobs in Massachusetts, not more, and when the state lays off more than 100,000 workers — Howell's number — those workers will be unemployed a long, long, time, and will be a drain on the state's economy for decades.

 

"You'll never have to tell the state government who lives in your home ... you'll get back financial privacy."

This is technically true, but a misrepresentation, since you will still have to tell the federal government this information (census and federal taxes), as well as local government (census). Wow, don't you feel safer already?

The fact is, your financial privacy is far more at risk with businesses who collect the data without your knowledge and sell it without your permission than it is with the government, which is legally bound to keep it confidential. Even the FBI would need a court order to get your records from the IRS or the Mass. DOR.

 

Howell repeatedly states that government programs "do not work" and would be better handled by private businesses.

This is an opinion, not a fact, and if Howell truly believes that private industry is inherently better run than government, I suggest she start reading "Dilbert."

Fact is, most government programs are very lean and do more with less than a comparable business. For every overpaid or underworked state employee who's only there because their job is safe, there are dozens of skilled workers who work for less than they could earn in private industry because they want to serve the people.

How many college educated people would work 60 or more hours per week for less than $29,000 per year? A lot, it seems, because the average starting salary for a teacher in the United States is only $28,990!

As for "not working," wasn't it government programs that sent a man to the moon? Built the highway system? Developed the internet? And, let's not forget, keep our country safe, both at home and abroad? Shame on Carla Howell for maligning government employees, including teachers, police officers, and military personnel!

One thing Carla's right about is the cuts. Removing the state income tax will remove $9 billion from the state budget, which is already in crisis. That means cutbacks in road repairs, police, job training, trash collection, teachers, and other "waste," as well as increases in fees, like trash collection, that will hurt tha average taxpayer far more than Howell's well-to-do constituency.

Massachusetts can't afford Carla Howell's crazy scheme! Vote "No on 1"!