Armey Opposes AL Governor Riley's Sept. 9 Tax Vote

Citizens for a Sound Economy ^ | 08-27-03 | Armey, Richard

[Theodore R.]

Citizens for a Sound Economy August 27, 2003

Alabama Will Lead Us In September, voters in Alabama can show the nation that higher taxes aren't the answer to state overspending.

Every once in awhile certain voters in our republic have the opportunity to make a profound impact on the country’s future. In 1979, the voters in California approved proposition 13 which dramatically lowered property taxes in that state. Proposition 13 sparked an anti-tax revolt across the entire country and helped elect Ronald Reagan president. Reagan then proposed and Congress approved across-the-board tax cuts that sparked the longest peaceful expansion in U.S. history. But it all started with the voters of California and Proposition 13, which liberals are still complaining about today.

On September 9th a different group of voters has another opportunity to send a message nationwide that Americans want lower taxes, less government and more freedom. On September 9th the voters of Alabama go to the polls to decide the fate of the largest tax increase ever proposed in state history. A friend and former colleague of mine, the Republican governor of Alabama, Bob Riley, has abandoned his conservative philosophy and is now asking Alabamians to approve his big government tax and spend scheme. The voters of that state can send a message to not only Governor Riley, but to all governors of either political party that the voters will not stand for politicians who want taxpayers to bail out state treasuries after years of excessive and wasteful government spending.

The Riley tax increase is huge. The plan includes new taxes on income, property, sales and services. It hits all Alabamians hard. Higher taxes of course reduce economic activity by punishing both investment and consumption. If approved, this tax increase would cost over 24,000 jobs in Alabama, according to a recent study by the Beacon Hill Institute. The same study estimates that investment in Alabama would be lowered by over $330 million.

This is why tax increases are a bad idea, especially when excessive spending is the underlying problem. Most states increased spending during the past ten years faster than the citizens personal income was growing. In their Fiscal Report Card on America’s Governors: 2002 Stephen Moore and Stephen Slivinski of the Cato Institute find that real per capita spending in Alabama increased by 39 percent between 1991-2000, the 19th fasted rate in the nation. That is a big increase. Much of the new spending went towards “education.” In fact, over the past thirty years in Alabama, Alabama has seen a 180% increase in education spending, a 42 percent increase in the number of teachers, a fifty percent increase in the number of principals – all to educate 14 percent fewer students. All of this spending comes with a significant cost to the state’s economy When government spending increases faster than personal income growth, the spending is not sustainable unless more of the citizens’ income is taxed. When more productive wealth of the citizens is taxed, economic activity declines.

Gov. Riley and his new allies at the Alabama Education Association say the $1.2 billion tax increase is needed to close a $685 million budget shortfall. Why would Alabama need a tax increase twice the size of its state’s budget gap? Because the plan includes no spending cuts, but instead includes a huge spending increase. The formerly conservative governor is repeating the mistakes of Alabama’s tax-and-spend past.

But, the good news is that the Governor and the state legislature do not have power to pass the tax increase without the approval of the voters. On September 9, the voters, not the politicians will decide the fate of this misguided proposal. When the voters cast their decision, they will not only be making a fateful decision about the future of Alabama, they will also impact the rest of the nation. Already, major national papers such as the New York Times, the Washington Post, the Philadelphia Inquirer and the Wall Street Journal have written and editorialized about the Riley tax increase. All, with the notable exception of the Wall Street Journal have praised Riley’s “courage.” Fortunately the Washington Post and the New York Times do not get to vote on September 9. The citizens of Alabama have that right and privilege. And I believe the people of Alabama are going to send a very strong message for lower taxes, less government and more freedom.

Their message will be heard in the state that started the great anti-tax revolt in the late 1970s – California. September 9 occurs less than one month before California’s historic recall election. Gov. Gray Davis faces a recall because of his mismanagement of California’s budget problems. Taxes are a driving issue in California. One of the current front-runners, Arnold Schwarzenegger, has not said whether he would support or oppose tax increases. On September 9th the people of Alabama will send Arnold a message about the viability of politicians who want taxpayers to cover up the politicians mistakes. Those types of politicians “won’t be backed.”

[Theodore R.]

It seems that the Democrats are rallying to the nominally Republican governor, and the Republicanss are rising in opposition!

[Princeliberty]

Riley backing coming form all the Democratic crooks
in Montgomery.

Actually the majority of both Republican and Democrat
and Independent voters are going to vote against this.

Riley will be defeated in 2006 by Judge Moore in
the Primary.

[Redbob]

The real irony in this campaign is that those at the lowest rungs of the economic ladder, the ones most likely to "benefit" from the proposed tax changes, are also the LEAST likely to vote for them!

Seems there is more optimism there and more intelligence than the Dimocrats - and Riley - would have you think.

[Theodore R.]

I would think that the "little guys" will be confused about this AL tax election and won't even vote for the most part. It seems to be the Democrat base that is rallying to Governor Riley here.

[Theodore R.]

Why do you suppose Riley put himself on the line for this?

I personally do not think Judge Moore will run for governor. Riley may not seek reelection if his popularity drops so drastically after this tax measure is defeated.

[Gunslingr3]

Riley will be defeated in 2006 by Judge Moore in the Primary.

Is Moore against raising taxes, even 'fer the chillrun'?

[Onelifetogive]

I supported Gov. Riley and I am on the Republican Party Executive Committee of one of the most Republican Counties in the state. I do not support the tax increase. Some in our party do. There are actually son good measures in there...but not nearly enough to justify the tax increases.

It will go down in flames...but Riley is early in his term and has time to recover.

Riley has REALLY been pissing me off with his commercials that "passage" of this plan will result in the ending of some "corrupt" and irresponsible spending practices. What that means is: "If the citizens of Alabama won't raise taxes, the government will NOT stop corrupt practices....."

[Princeliberty]

Moore is a true conservative he certainly will be
and will push a real reform package.

Riley will be crazy if he even bothers to run.

[Princeliberty]

Moore not doing the 10 Commandments fight in order
to run for anothe office. But his supports are
going to pushing him to run and given a chance
to change state government and Alabama is
a massive way I think Moore will do his duty and run.

Riley seems to have just wimped out. Rather than
fight the good ole boys and push for real reform
he cut a deal thinking it would be the easy
way out instead its going to be the easy way
out of being governor.

Riley very well may not even run.

[Reagan Man]

>>>>Proposition 13 sparked an anti-tax revolt across the entire country and helped elect Ronald Reagan president.

No doubt about it. Proposition 13 was instumental in starting a wave of serious anti-tax revolts in many states. And American's are still overtaxed today. Having said that, Proposition 13 wasn't the overriding factor for American's electing Ronald Reagan POTUS. It had everything to do with an incompetent and inadequate Democrat president named Jimmah Carter. Carter almost destroyed the economic engine of this great country, severely weakened its military capability and left American's questioning their future. And all in a mere four years.

[Theodore R.]

Despite all you write with such conviction, there are still millions of American citizens who admire and laud Jimmuh Carter. Even when he left the Southern Baptist Church for a liberal alternative, Southern Baptists continue to admire and support him. Now he is called if not American's "greatest president," at least its greatest "ex-president." He spends most of his waking hours, it would seem, trying to gain justification in the eyes of the voters who defeated him in 1980. One of his biggest boosters now is of course Gerald R. Ford, Jr., the man he unseated in 1976 on grounds of the "misery index," which Carter invented and which came back to bite him!

It was also Jimmuh Carter who appointed the liberal judge Myron Thompson in AL.

[Moby Grape]

You are 100% right about Riley. He took the oath and began sounding like the republican that was elected...annouced CUTS, cuts in spending, lay-offs in the bloated state worker forces...BUT, then, Paul Hubbard (head of the Alabama Education Assocation and one of the RICHEST men in Alabama), along with heads of the state worker unions, etc. got Riley to a private meeting a a hotel....Riley became a democrat over night...something happened in that room.

Riley need not run for re-election, he would be able to get 15% of the GOP vote.

[Reagan Man]

>>>Despite all you write with such conviction, there are still millions of American citizens who admire and laud Jimmuh Carter.

And as you point out, there's even a former Republican, president who has grown to "admire and laud" Jimmah Boy. I think age has taken its toll on the poor moderate liberal, Gerald Ford. Very sad.

[Theodore R.]

Poor Jimmuh Carter, even the smile was fake!!!

[Princeliberty]

When was this meeting?

[Theodore R.]

Some of these Republicans have a "disease" in that they sit around longingly wanting and waiting for a Democrat to praise them -- tell them what great guys they are, how much of a service they have been to the country, and how much they will be missed now that they have been defeated!

[libstripper]

I doubt that it has. Lyndon Johnson said Ford had played too much football without a helmet, then he appointed Ford to the Warren Comission. Ford has always been the DemonRATS' favorite "Republican" shill.

[libstripper]

Same thing happened the lsast four years here in Tennessee. We had a RINO governor, Don Sundquist, who denounced a state income tax until he was elected to his second term, with my vote and those of thousands of other Republicans and conservatives. Then he promptly betrayed all of us and spent his entire second term trying to cram an income tax down out throats. We beat him, after nearly staging a physical revolution.

My heart goes out to the people of Alabama, since they have another of these RINO RATS. The only thing to do is massively defeat this abomination and make sure Riley has no chance of ever holding another elective office in Alabama.

[Theodore R.]

Why do you suppose Riley deserted his people? Could his narrow victory margin in 2002 cause him to want Democrat support to obtain a comfortable reelection margin? Some Republicans though just can't wait for a Democrat to say something nice about them. One rarely sees a Democrat sit around waiting for a Republican to compliment him.

[phil_will1]

"Despite all you write with such conviction, there are still millions of American citizens who admire and laud Jimmuh Carter........
Now he is called if not American's 'greatest president,' at least its greatest 'ex-president.'"

Here in Ga, Carter is viewed largely as a failed President, and as much more effective as an ex-president. Noone doubts his sincerity or character. However, we also remember when the prime rate and inflation were both around 20%, our helplessness at the Iran hostage crisis, an economy that seemed out of control, and Carter's philosophizing about America's "malaise". I know some who worked on his campaign in 76 who were glad he lost in 80 to Reagan.

One of the great mysteries of my lifetime is how the pollsters could have missed the 80 outcome so badly. Just before the election, the pollsters were calling it too close to call and Reagan won one of the all-time biggest landslides ever. Go figure.