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Location: Nashville, Tennessee, United States

9/23/2002

More on Fiscally Reckless Don
The Tennessean reports on the Cato report two days after you read about it here, but true to their pro-income tax agenda they allow Sundquist flack Kriste Goad to get away with pure political spin:

The spin: "Tennessee is the lowest-taxed state in the union," Goad said.

The truth: Technically true, but only because we didn't let Sundquist have his income tax three years ago, two years ago, one year ago, or this year. An income tax would have vaulted Tennessee to near the top among states in taxation within a few years.

The spin: Goad notes that two of the states whose governors got the best grades from Cato have higher taxes and bigger state budgets than does Tennessee.

The truth: Technically true, but a diversion from the main point of the Cato ranking. Cato was grading how governors have handled budget and tax issues in the last year, NOT the size of a state's budget or its level of taxation.

It's true, for example, that Colorado has an income tax and Coloradans pay higher taxes. But Gov. Owens prevented the problem from getting worse and instead improved things by cutting spending and reducing taxes.

Owens and Sundquist both faced a slowing economy and slowing revenue growth. Owens responded by cutting taxes and cutting spending, as he has done consistently since being elected four years ago. Today, Colorado enjoys balanced budgets and its economy is stronger than Tennessee's. Gov. Sundquist responded by proposing massive tax increases and spending increases for four straight years, culminating in this year's tax increase of nearly $1 billion. That tax increase is one reason the state's economy remains sluggish.

The real message of the Cato report is this: Colorado's constitution protects taxpayers from the kind of massive tax increases and spending binges that Gov. Sundquist favors. Until Tennessee has a similar Taxpayers Bill of Rights provision in its constitution, taxpayers here will remain vulnerable. Incidentally, Van Hilleary supports giving Tennesseans such protections, while tax-and-spend Phil Bredesen does not.

(For more on this issue, scroll down to my Sept. 20 post, Sundquist Gets Failing Fiscal Grade.)