TAXPAYER BREAKING NEWS, April 2004, continued from Home Page

April 30, 2004. Higher education tution and various corporate taxes highlight this year's veto lobbying campains, reports the Gazette. "Among the bills that died in the final days were a 2 percent hike in HMO premiums, tuition breaks for illegal immigrants and speed radar cameras -- all similar to bills the governor vetoed last year. Other veto-bait bills, including an assault weapons ban and gay rights, also died."

April 29, 2004. MTA's Lyle Siegel, Dennis Chase, and Spear Lancaster took on the Howard County Council this evening, at the Howard County FY 2005 Operating Budget Hearing . Siegel first testified by summarizing how other states, such as North Carolina and Wisconsin, are joining Maryland in discovering the benefits of TABOR. Then, unexpectedly according to Siegel, an "ardent tax-loving Howard County resident launched into an emotional tribute to loving more and more taxes and how we can control taxes, comparing taxes to the protective 'shade of a tree,' especially in benefitting senior citizens." Spear Lancaster, then called to testify, summarized how we ended up in today's taxation mess. He then rebutted the previous testimony by reminding everyone in the hearing room that the "shade of a tree" was not a gift from the Howard County Council, but a product of hard-working taxpayers. Just prior to the MTA testimony, reports Siegel, Dave Herr, a Libertarian, testified eloquently in support of the MTA TABOR guidelines. All of this was captured on Howard County TV for later broadcast.

April 28, 2004. Baltimore Sun calls for vetos on living wage and tuition "cap." "THERE ARE TIMES when Gov. Robert L. Ehrlich Jr. plays the boy who cried wolf. Policy disputes are always politically motivated. Democrats just want to embarrass him. Much of the time, he's wrong -- a victim of the bunker mentality that so often pervades the State House's second floor. But once in a while he's correct -- and his opponents are hoping the rest of us won't notice. Such is the case with two controversial pieces of legislation sitting on his desk. One is the so-called living-wage law that would require state contractors to pay certain workers at least $10.50 per hour. The other is the proposed three-year 5 percent cap on tuition increases within the University System of Maryland. The bill would also guarantee about $100 million more in state funding for the system."

April 30, 2004. Incompetence or sabotage? asks Richard Rahn in the Washington Times. "If the Treasury and the National Economic Policy staff were not asleep at the switch, they would have a daily drumbeat, including many statements by the president, on how they cured the Clinton-Gore recession until even the left-leaning national news media would have to report it. They also would explain how the Kerry plan would increase chances of a new recession.... Is the irresponsibility of some officials in the Bush administration about the above-mentioned issues solely the result of incompetence or do they have a different personal agenda? When you ask responsible people in the administration about these miscreants, they only say it would likely be worse under a Kerry administration -- how true and how sad."

April 28, 2004. Pat Toomey didn't lose to liberal Arlen Specter. Toomey lost to the entire Republican party, reports Timothy Carney in the National Review. "That Republican victory was at the cost of the conservative cause. . . . Local media described Specter defending the Keystone GOP's tradition as a moderate Republican state. That more describes the leaders of the party in Harrisburg than it does the voters throughout that state's 67 counties."

April 27, 2004. National Taxpayers Union supports Wisconsin TABOR. "On behalf of our thousands of members in Wisconsin and throughout the nation, we write to strongly endorse Wisconsin State Assembly Joint Resolution 55, which would amend the Constitution to create a Taxpayer's Bill of Rights (TABOR)."

April 27, 2004. "States argue that the recent economic downturn necessitates tapping cyberspace as a brand new cash cow to fund vital public services," says a Wall Street Journal editorial. " But watchdog groups like the Club for Growth and Americans for Tax Reform are quick to point out that tax receipts at the state and local level have doubled over the past 12 years. If states are in the red, it's because of their inability to control spending."

April 25, 2004. Facing resistance to parts of his $40 million tax proposal, Mayor Martin O'Malley is waging a lobbying campaign with City Council members, manufacturers and nonprofit organizations, reports the Baltimore Sun. "Manufacturers are warning that imposing an energy tax could prompt layoffs or movement out of the city."

April 24, 2004. Suggested Calif. ban on paperless voting equipment heartens Maryland opponents, reports the Baltimore Sun. "'My first reaction was "I told you so." There's been lots of evidence for quite a while that these machines have problems,' said Linda Schade, co-director of truevotemd.org, a group that opposes Maryland's use of Diebold machines."

April 23, 2004. State agencies, schools have funds languishing in unclaimed property accounts, reports Capital News Service. "Richard Falknor of the Maryland Taxpayers Association said that although the amount of missing public money is relatively small, it is symbolic of poor record-keeping at the state.'The moral of the story is, for a government that is constantly complaining about insufficient money, they should at least look at their own accounting,' Falknor said. 'It's the kind of thing that breeds cynicism and erodes public confidence.'"

April 23, 2004. Governor Ehrlich implores busines leasers to be more influential, reports the Washington Post. "Blair Lee, a Montgomery County real estate developer and political commentator, said he believes the governor's plan, while shrewd, will be tough to achieve. 'It's going to be uphill,'Lee said. 'Businesses have never had a strong voice in Annapolis. They've always tried to play it safe and contribute to both sides."

April 23, 2004. Ehrlich lets loose, reports the Gazette. "'The business community has yet to achieve its goals,'" Ehrlich said, adding that business will be successful only if it becomes 'dangerous.'"

April 23, 2004. Doctors consider dumping malpractice coverage, reports the Gazette. "Medical Mutual, the state's largest insurer of doctors, could raise rates as much as 40 percent, and GE Medical Protective, another malpractice insurer, has filed with the Maryland Insurance Administration for an increase of 68 percent."

April 21, 2004. A citizens' group in Takoma Park will file suit Thursday against the state Board of Elections, charging that Maryland's 16,000 new electronic voting machines fail to comply with state law, reports the Baltimore Sun. "'The goal of the suit is to decertify the machines unless and until we can remedy well-publicized security vulnerabilities with the machines and institute a voter-verifiable paper-audit trail so that we can have a meaningful recount in the November 2004 election,' Ryan P. Phair, a Washington-based attorney representing truevotemd.org, said Wednesday."

April 21, 2004. Property tax relief proposed in Montgomery, reports the Washington Post. For his part, Ficker seemed unimpressed with Andrews's approach. "What Mr. Andrews should do is to have the council stick to their own limit," Ficker said.

April 19, 2004. The Wall Street Journal presents "A Tax and Spend Lesson" on the Colorado TABOR. "The results have been impressive. Between 1995 and 2000, Colorado ranked first in gross state product growth and second in personal income growth. From 1997 to 2002, it led the country in tax reduction and issued annual rebates totaling more than $3 billion. No wonder a poll conducted last year found that 60% of Colorado voters support Tabor, while only 15% oppose it."

April 16, 2004. Is Maryland now a 'Tax Hell?' asks the Capital? "'There aren't a lot of people willing to put a lot of effort in this in Maryland,'admitted Lyle Seigel of the Maryland Taxpayers Association. 'I think they feel taxes are a fact of life, and there's nothing they can do about it.'"

April 15, 2004. State residents face no new taxes, but fees aplenty, reports the Capital. "Mr. McMillan, the House's leading voice against tax increases, said he was not satisfied that this was a fee instead of a tax.'There is no guarantee that the fee won't be used for something else. The way this is structured, the money will not necessarily go to roads or titling. It can be used for anything,' he said."

April 14, 2004. Lessons for Maryland: Virginia hopes to privatize Dullas rail project, reports the Washington Post. "Virginia officials say a private firm would be more accountable and more affordable and would share in the financial risk.'What we have looked for, and insisted upon, is a deal that will be good for the taxpayers and a deal that is better than one that will be reached through conventional procurement methods,' Virginia Transportation Secretary Whittington W. Clement said. The partners have agreed to perform preliminary engineering for about $48 million, 20 percent less than the $60 million that Metro estimated the work would cost, said sources close to the negotiations."

April 14, 2004. Ehrlich plans to veto three bills, reports the Baltimore Sun. "Bills that Ehrlich has pledged to veto include a measure that holds down future tuition increases at state universities by temporarily raising the corporate income tax to help pay for higher education. A second closes a tax loophole while forcing Ehrlich to choose whether to grant companies amnesty for back-owed money. Another turns Maryland into the first state in the nation to guarantee a 'living wage' of at least $10.50 a hour for employees of large contract-holders."

April 14, 2004. City, counties brace for deep budget cuts, reports the Baltimore Sun. "'As a Democrat, it is tough to propose this, but we cannot afford Thornton now,'Miller said, referring to the 2002 eduction plan. 'We are going to have to move to fully fund Thornton but delay the funding over a longer period of time.'"

April 13, 2004. Vehicle tag fee increase signed into law, reports the Baltimore Sun. Says the Sun: "Registration will increase from $81 every two years to $128 every two years for passenger vehicles weighing less than 3,700 pounds and $108 to $180 for larger passenger vehicles" and "[t]he bill also allows the Motor Vehicle Administration to increase miscellaneous fees, producing $20 million a year in new revenues. TBN notes: As road expert Peter Samuel wrote last February: " Less welcome is Gov Ehrlich's proposed hike in annual registration fees. This is a tax on ownership of a vehicle eligible to be driven on public roads. It only makes sense as a charge for managing the motor registry and its list of eligible vehicles. There isn't any obvious equity case for funding new roads or transit out of such registration fees. People don't create a demand for roadspace simply because they own and register a car, only when they use that vehicle in places and at times when roadspace is scarce. A lot of those using our roads have vehicles registered in other states so registration fees hit Marylanders and let visitors off scot free. That is bad equity and bad politics." (Emphasis TBN's.)

April 13, 2004. Club for Growth chief Stephen Moore argues: Give voters a choice on new taxation. "Virginians keep saying 'hell no' 'to new taxes, and the politicians in both parties seem to be politically tone deaf. The governor and the Republicans in the Senate just don't seem to understand what the meaning of the word 'no' is".

April 13, 2004. Key Ehrlich bills pass, the Washington Times reports. "Mr. Ehrlich said he will veto a bill to cap tuition at state schools and a living-wage bill backed by Democrats and would assail House leadership for not being 'particularly interested 'in moving the slots bill.... He also said more state cuts will be announced as soon as this summer because there will be no slot machine revenue to pay for the $1.3 billion, court-mandated Thornton education initiative."

April 13, 2004. "'Green lobby' is ecstatic" with results of Maryland legislative session, reports the Washington Times. "Dru Schmidt-Perkins, executive director of the anti-sprawl group 1,000 Friends of Maryland, said environmentalists were pleased that the debate over transportation revenue helped bring new administration commitments to fund mass transit."

April 10, 2004. SENATE TAXPAYER STALWARTS: Longtime taxpayer advocates Andy Harris and Alex Mooney, as well as Roy Dyson and Norman Stone--all four Taxpayer Protection Pledge Signers -- voted against the car registration hike. The National Taxpayers Union with over 6,600 members in Maryland wrote Governor Ehrlich on February 19: "Raising car registration fees by more than 50 percent and truck registration fees by more than 65 percent – with no requisite increase in processing costs or other extenuating circumstance – is clearly a tax." (Emphasis TBN's. See HB 1467 Fiscal Note.) Regrettably Pledge Signers and Maryland Senators Colburn, Greenip, Haines, Hooper, Jacobs, Kittleman, and Stoltzfus succumbed and voted for the substantial increase which touches every owner of a car or truck with Maryland registration.

April 9, 2004. KUDOS TO MCMILLAN, LEOPOLD, AND SOPHOCLEUS FOR VOTING AGAINST CAR REGISTRATION HIKE: The National Taxpayers Union with over 6,600 members in Maryland wrote Governor Ehrlich on February 19: "Raising car registration fees by more than 50 percent and truck registration fees by more than 65 percent – with no requisite increase in processing costs or other extenuating circumstance – is clearly a tax." (Emphasis TBN's. See HB 1467 Fiscal Note.) Regrettably Signers Colburn, Greenip, Haines, Hooper, Jacobs, Kittleman, and Stoltzfus succumbed and voted for the substantial increase which touches every owner of a car or truck with Maryland registration. The Washington Post reports: "The measure that won tentative support yesterday is virtually unchanged from a plan approved by the House. Under the proposal, which would raise $165 million for transportation projects, drivers would pay an average of $128 every other year to register their cars, up from $81. Truck and SUV owners would pay $180 every two years, up from $108."

April 8, 2004. Rich Lowry criticizes "the silly war against Wal-Mart" in a townhall.com article. "As a Federal Reserve economist has said, 'Wal-Mart is the greatest thing that ever happened to low-income Americans.'"

April 8, 2004. Today, in a stern letter ("Promise Us You Won't Be Paid-Off") to 27 Virginia Delegates and Senators, Americans for Tax Reform (ATR) President Grover Norquist asked for a public promise that no future paycheck is sweetening the appeal of hiking taxes on Virginians."

April 7, 2004. Internet voice communications: MTA joins over 30 citizen groups in urging the FCC "to protect this new development from crushing taxes and regulation." The 350,000-member National Taxpayers Union (NTU) organized the statement.

April 6, 2004. Restore democracy--and spending restraint--in Virginia, writes Peter Ferrara in virginianewssource.com. "Fourthly, we need a Taxpayer Bill of Rights in Virginia, like they have in Colorado, that limits the growth of state taxes and spending and rebates any excess to the taxpayers."

April 6, 2004. Bruce Bartlett: Who pays the taxes? "In short, the poor paid half as much of the federal tax burden in 2001 as they did in 1984, while the rich paid about 50 percent more. Those in the middle paid about a third less."

April 6, 2004. Maryland Senate president vows to block state budget to pass slots, reports the Washington Post. "Miller said he pressed Ehrlich on Sunday to 'give consideration to the House position' on taxes. But he said Ehrlich won't cut a deal until Busch moves the slots bill. Last year, Miller said, Ehrlich agreed to raise property taxes in exchange for House passage of slots, 'and he got nothing in return.'"

April 5, 2004. US business confidence seen at 20-year high, reports the Financial Times. "In recent quarters, companies have been wary of hiring staff, preferring to make greater use of existing capacity, but continued growth and record profitability appears to be convincing managers that productivity improvements alone may not be enough to meet rising demand. Half the chief executives who responded to the Conference Board's lastest poll said they expected employment in their industry to rise, compared with just 12 per cent who predicted a fall - the most optimistic response on jobs since the research group began its analysis in 1976."

April 4, 2004. Ehrlich agenda appears in peril as slots and taxes threaten to ensnare other issues, reports the Baltimore Sun. "But Democrats say they shouldn't take votes in favor of higher taxes and fees that could cost them constituent support if Republicans won't. Democratic House Speaker Busch demanded near-total GOP unanimity for Ehrlich's transportation program that included a large vehicle-registration fee increase. The transportation bill, too, has yet to be approved by the Senate and could also be a victim of the slots vs. taxes stalemate."

April 3, 2004. NYT notices the next big campus revolution, reports David Horowitz in frontpage.com. "Conservative students at Brandeis and virtually all the other schools I have visited are treated as second class citizens. It is this situation that Students for Academic Freedom was designed to address. We have organized Students for Academic Freedom clubs on 133 campuses and that is just since September. Our website at www.studentsforacademicfreedom.org has been visited 125,000 unique individuals since September as well. We have passed legislation on the Academic Bill of Rights in Georgia and gotten the university system in Colorado to agree to put its protections in place. We have legislation proceeding in 7 other states and the US House of Representatives. And we have made a big enough impact to come to the attention of the Chronicle of Higher Education and the New York Times." See NYT story.

April 2, 2004. Md. Senate demands house action on slots, reports the Washington Post. "'The governor wants to -- has agreed to -- review various revenue options,' DiPaula said.'"Fruitful discussions take a while. . . . I think it's fair to say hope is very much alive.'"

April 2, 2004. No new gun bills seen as likely this session, reports the Washington Times. "'I think the gun debate died when [Sen. John A. Giannetti Jr.] decided he wasn't going to support any kind of ban,'said House Speaker Michael E. Busch, Anne Arundel Democrat."

April 1, 2004. Students for Academic Freedom won a victory this week when San Francisco State University agreed not expel student Tatiana Meneker, reports the organization. "Students for Academic Freedom took up Menaker’s case and we are gratified by the result. The national media have taken notice of our extraordinary growth as a movement, and there will forthcoming stories in the Washington Times, the San Francisco Chronicle, and the New York Times."