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Posted on 06/09/2002 5:33:34 AM PDT by GailA
Sundquist feels he has acted correctly
By Karin Miller, Associated Press June 9, 2002
NASHVILLE - In his final year as governor, taxes still mean trouble for Don Sundquist, a staunch tax opponent turned income tax champion.
When Sundquist first entered office in 1995, the Republican was so anti-tax that he angered Democratic lawmakers who control the General Assembly by refusing to sign bills that allowed cities and counties to raise their own taxes.
After his re-election to a second and final term in 1998, he said the state needed new tax revenue and eventually announced his support for an income tax. He now endorses the 4.5 percent flat rate plan offered by Democratic House Speaker Jimmy Naifeh, which Sundquist says is the only viable budget proposal that can repair the state's poor finances. The about-face brought isolation from Sundquist's party and public criticism. He's been booed at football games. He's lost a few friends. Republican candidates don't seek his help on the campaign trail.
But Sundquist says he's at peace with himself.
"I believe as elected officials you have to be judged after you leave office on whether you've done the right things, and I believe I've done the right things," he said.
The transformation didn't come easily to a man who calls himself "one of the toughest on new spending and cutting spending" during his 12 years in Congress, and who brought that mindset to the governor's office.
Sundquist froze travel and hiring on his first day in office and cut $220 million from the budget enacted by his predecessor, Ned McWherter, to balance the books. Twice, Sundquist proposed budgets that were lower than the previous year's spending.
During the first seven years of his administration, the rate of growth in state spending was cut; more than 2,500 state employee positions were eliminated; state departments were consolidated; and more than $400 million was cut from the executive department's budget.
But the state's tax structure, which relies heavily on sales tax and business levies, was faltering.
Sundquist has been criticized for failing to mention that during his 1998 campaign, in which he faced only nominal opposition. He swears he didn't know until his finance commissioner came to him after the November election with news that corporate tax collections were way off predictions.
"If I'd known then, I would have brought forth solutions. I've never run from a fight in my political life," Sundquist said.
Even so, he continued running from a state income tax; Tennessee is one of nine states without a tax on personal income.
During his 1999 State of the State speech, Sundquist said all an income tax would do was "raise the tax burden on Tennesseans and create a way to finance the easy and endless expansion of government."
Instead, he proposed a "fair business tax" plan that would have taxed company profits and salaries above $50,000, in essence an income tax on wealthier Tennesseans. However, business lobbyists quickly buried the plan, along with every alternative Sundquist offered. "Then it got to the point where people said, 'If we do pass an income tax, because it meets the criteria of what will solve the tax problems, will you sign it?"' Sundquist said. "After agonizing about it, I said I would, and suddenly it became my project."
He said he's willing to accept that.
"You have to make decisions and choices. Is it better to let the state go down the tubes or do you solve the problem with the best solution you can find?"
Once he made the decision, he said it was his responsibility to offer specific proposals.
The first was a flat income tax of 3.75 percent, coupled with the reduction of the sales tax from 6 percent to 3.75 percent. It was rejected, as were all other proposals, and lawmakers instead patched together two consecutive budgets using accounting tricks and one-time money to pay for ongoing services. Sundquist vetoed the budgets but lawmakers overrode his vetoes.
The state now has a shortfall of at least $480 million for the current budget year and needs more than $800 million in new revenue to fund the same level of services next year.
"I told them what was going to happen and unfortunately everything I said has happened," Sundquist said.
Does he shoulder some of the blame?
"I could say it's not my fault. Well, it's not my fault, but it's my responsibility to keep trying to find a solution," the governor said.
"Part of me, the evil part, says to turn this problem over to the next governor. But the good part of me says I should fix it before I leave office."
EACH YEAR FOR THE PAST 7 YEAR'S TAXQUIST BUDGETS HAVE BEEN ONE BILLION DOLLARS HIGHER THAN THE LAST YEAR'S BUDGETS--A 47% INCREASE IN SPENDING IN 7 YEARS!
Hurry before they bring out the Cheerleaders!
1. "During the first seven years of his administration, the rate of growth in state spending was cut...."
2. "EACH YEAR FOR THE PAST 7 YEAR'S TAXQUIST BUDGETS HAVE BEEN ONE BILLION DOLLARS HIGHER THAN THE LAST YEAR'S BUDGETS--A 47% INCREASE IN SPENDING IN 7 YEARS!"
ANSWER:Both statements are true.
But the first statement illustrates the way in which scumbag politicians and their news media whores dress things up.
I think somebody's got something on him....
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