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Location: Nashville, Tennessee, United States

7/16/2002

Colorado Plan Gets an Endorsement
Tennessee Republican gubernatorial candidate Jim Henry, who has said he favors holding a constitutional convention on taxes, today endorsed the concept of a Taxpayer Bill of Rights similar to the one in place in the Colorado. Henry, speaking on Phil Valentine's talk show on WLAC 1510 AM, said he believes an income tax violates the state constitution. Asked if he would support a constitutional amendment like Colorado's, Henry said yes, and added that he approves of how Colorado's Taxpayer Bill of Rights causes a governor to have to "sell" his programs to the public. Colorado's constitution caps the rate of growth of government spending to the rate of population growth plus inflation, and requires surplus revenue be returned to taxpayers via tax cuts or direct rebates. If legislators wish to spend the surplus, they may ask voters' permission in a referendum. The Colorado plan also requires referendum approval to raise taxes or increase tax rates - and all provisions of the amendment apply to both the state and local governments.

Colorado's TABOR, as it is called, has proven to be an effective tool to reign in government spending and tax increases in Colorado, and helped make government more accountable to the people of that state while also involving people more directly in the debate over taxing and spending. It has improved the political debate and political participation in the state while also making goverment more accountable, says the Rocky Mountain News - which a decade ago had urged voters to reject the proposed amendment.

TABOR also helps government better manage its finances long-term. Research by a University of Colorado economist found the amendment helps "smooth" the state's finances, so that it doesn't over-spend during economic booms and then face large shortfalls during an economic slowdown.

For more on the Colorado plan, scroll down to read Colorado Shows the Way, Busting the Cap, and We Won, Now What? (or click on the links).