Editorial: Chafee and taxes
January 7, 2010
ProJo.comEditorials
Former U.S. Sen. Lincoln Chafee has, as expected, entered the Rhode Island gubernatorial race. He brings a rather colorful résumé, including as a farrier, membership in a famous Rhode Island family, some business experience, the mayoralty of Warwick and, of course, as a senator with a record of great independence (some would say quirkiness) regarding his then-fellow-Republicans and Washington politics in general. He has justly criticized the last decade's binge of deficit spending.
In his announcement on Monday, Mr. Chafee, who is running as an independent, also displayed what many would construe as political courage (or suicide) in proposing that the state consider imposing a two-tiered sales tax in order to tax items now exempt from the state sales tax, such as food, clothing and over-the-counter drugs. The idea is to raise enough extra revenue to pull the state out of its deep state government deficit, and, he hopes, ultimately produce enough state revenue to lower the overall sales tax and allow cutting other taxes in the state, too. (The local property tax is generally considered the most onerous.)
Mr. Chafee notes that some other states have such two-tier sales-tax systems. We agree that everything should be on the table in these challenging times, though it has long been clear that Rhode Island needs to move toward a more competitive tax environment to encourage entrepreneurs to create jobs here (and generate the revenue that pays for crucial public services). Let us hope, in this campaign, that candidates make frequent use of data from other states for good ideas, and stay out of the usual provincial Ocean State bubble, wherein no one seems to know what's going on in the 49 other states.
Still, Mr. Chafee didn't get into what sort of programs could be cut to stabilize the state's finances. The state has already cut a good deal. Municipalities need to pitch in, by trimming waste and stopping giveaways that can be found in many public-employee contracts. State aid, after all, bails out such practices as paying millions of dollars extra a year across the state to public employees as a reward for such things as not calling in sick! This is money taken from needed public programs and infrastructure. State government has been an enabler of such practices.
And there is much local work that could be regionalized, saving a lot of money, as witness the success in places like Delaware and Virginia in using county government.
We need to hear more from Mr. Chafee about what sort of changes he would back to control these local costs, which always end up being state costs, too, to a lesser or greater degree.
Mr. Chafee's rivals in the race, for their part, have an obligation to speak honestly about what taxes they would raise and what programs they would cut to get the state out of its fiscal mess. Most have been vague. (While we disagree with him, we give, for instance, state Atty. Gen. Patrick Lynch credit for saying he wants to roll back the "flat tax" for the wealthy. Such a rollback would probably send more entrepreneurs and other job creators out of state, but Mr. Lynch is at least being specific.)
Citizens would do well to remember that while you can run for office on generalities, you must, after all, govern on specifics.
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Still, Mr. Chafee didn't get into what sort of programs could be cut to stabilize the state's finances. The state has already cut a good deal. Municipalities need to pitch in, by trimming waste and stopping giveaways that can be found in many public-employee contracts. State aid, after all, bails out such practices as paying millions of dollars extra a year across the state to public employees as a reward for such things as not calling in sick! This is money taken from needed public programs and infrastructure. State government has been an enabler of such practices.
And there is much local work that could be regionalized, saving a lot of money, as witness the success in places like Delaware and Virginia in using county government.
We need to hear more from Mr. Chafee about what sort of changes he would back to control these local costs, which always end up being state costs, too, to a lesser or greater degree.
Mr. Chafee's rivals in the race, for their part, have an obligation to speak honestly about what taxes they would raise and what programs they would cut to get the state out of its fiscal mess. Most have been vague. (While we disagree with him, we give, for instance, state Atty. Gen. Patrick Lynch credit for saying he wants to roll back the "flat tax" for the wealthy. Such a rollback would probably send more entrepreneurs and other job creators out of state, but Mr. Lynch is at least being specific.)
Citizens would do well to remember that while you can run for office on generalities, you must, after all, govern on specifics.
Click here for original article
Linc Chafee is a tested leader of unquestioned integrity and a strong independent voice. As Governor, he will work hard to create new jobs, rebuild our economy, solve our chronic budget problems, end corruption, and forge a new way forward for Rhode Island.
United Food and Commercial Workers Local 328
United Nurses & Allied Professionals (UNAP)
Service Employees International Union (SEIU) State Committee
