ATR: Tax Alert: August 29, 2001

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State House Speaker Jim Black (D-36) halted debate on the N.C. General Assembly floor on Monday, August 27, just as lawmakers were about to vote on nearly $1 billion in tax increases. The Raleigh Police Department bomb squad did not find a bomb in the Legislative Building after three hours of search. On Tuesday, House leaders reconvened with a proposal to increase sales taxes by ½ cent and income taxes by ½ percentage point. Various proposals for tax increases over the last few months have revolved around a projected $167 million spending shortfall for the current fiscal year. (The Charlotte Observer, 8/28/01)

Andrew and Priscilla Tempelman owe $148,714.47 in property taxes, interest and penalties, and more than $250,000 in income taxes, according to federal tax collectors. After 18 years of protest, the Tempelmans were served by U.S. marshals on August 22 with an order to vacate their property, pursuant to a 1^st Circuit Court of Appeals' 3-judge panel review. Andrew Tempelman served time in jail for threatening to kill a former Milford tax assessor in 1995. The Tempelmans believe that the federal government does not have Constitutional authority to levy income taxes, and that their property should be exempt from taxes because Mr. Tempelman is a minister and their property includes a church building. (The Telegraph, 8/29/01)

State Senate Minority Leader Tom Rossin (D-35) and Democratic Leader of the House Lois J. Frankel (D-85) are using scare tactics to encourage Gov. Jeb Bush (R) to call a special legislative session. Threatening a $500 million spending shortfall, Democratic leaders are blaming the $1.6 billion in tax cuts approved by the Governor since he took office. "It's a fallacy to think that this money would not have been spent by the Legislature if we did not have tax reductions," said Liz Hirst, a spokeswoman for Gov. Bush. (South Florida Sun-Sentinel, 8/8-9/01)

More fodder for our heroes, the taxpayers activists of Tennessee: the Veterans' Administration campus in Johnson City spent $239,000 in taxpayer money renovating a duck pond at East Tennessee State University. Three fountains and an attractive concrete walkway later, a large duck and geese population has ruined the site for human visitors. The Veterans Administration released a statement to the effect that they didn't expect ducks and geese to visit the duck pond (!), and that they will exterminate the birds at taxpayers' expense. There are no plans to discourage future bird populations from using the duck pond. Animal rights' activists and taxpayer activists alike: nota bene.

Ten years ago, on August 22, 1991, then-Lt. Gov. Eunice Groark cast the deciding vote on whether CT should have a state income tax. Nearly 40,000 protesters gathered in Hartford to rally against the creation of the tax in October of 1991, among them Gene Gavin who is now commissioner of the state Department of Revenue Services. About the tax, Gavin offered the following declaration: "It's part of our tax system and it's not going away." Such is the core problem with creating new means of tax collection; new taxes are virtually impossible to repeal. The tax cost 1.6 million Connecticut taxpayers $4.6 billion last year. Since enactment, the state budget has almost doubled from $7 billion to $13.5 billion. (New Haven Register, 8/23/01)

Gov. Swift (R) reiterated her pledge to MA taxpayers in response to a proposal by State Representative Joseph C. Sullivan (D-Braintree) that she consider a 21-cent gas tax increase to help cover rising Big Dig costs. "I think I have made it pretty clear that we won't be raising taxes during my tenure in the governor's office," Swift said. (Boston Globe, 8/17/01)

To the family and friends of Montana State House Majority Leader Paul Sliter (R) who was killed in a drunk driving accident. Sliter helped pass a state resolution in support of President Bush's tax relief plan.

Heroes for August: VA Gov. Gilmore and CO Gov. Owens for their strong opposition to the Simplified Sales Tax Project, an attempt by 42 state governors to uncover the means to tax interstate e-commerce. Those 42 Governors will receive our "Enemy of the Taxpayer" award for August.