Dems want `truth' on tax cut plan

ROBERT CONNOLLY
509 words
26 August 1993
Boston Herald
01
026
English
(Copyright 1993)

The Massachusetts Democratic Party pushed Gov. William F. Weld yesterday for an answer on how he would pay for his proposed $207 million tax cut, but the governor continued to say he wants to cut taxes first and the budget later.

With a hot sun beating down, temperatures soaring past 90 degrees, and with, perhaps, a bit of summer reverie in the air, several dozen Democrats - led by party Chairwoman Joan M. Menard - gathered outside the State House demanding to know how the cuts would be made and charging Weld misled the public when he said he could cut the budget without causing "pain."

"The truth is this administration seems to believe you can promise the public anything, and not substantiate anything, and they'll still believe you," said Menard, who also serves as assistant majority leader in the House.

Menard and the other Democrats holding the self-styled "Truth Day" wore buttons reading "Liar, Liar, Pants on Fire," and "This Emperor Has No Clothes," as they pushed for the information.

Weld, in response, said he will not be specific about budget cuts until the Legislature goes along with his plan to cut gasoline and income taxes. But the governor disagreed with critics who said he wasn't showing his cards.

"We said we would cut 0.8 percent of the budget, which is 2.7 percent of discretionary spending. Discretionary spending is a definable term - it's between $5 (billion) and $6 billion in the budget - so you could compute what it would be for each Cabinet secretary. That's perfectly specific," he said.

Republicans said there was no need for Weld to put cuts on the table.

"You can find the (budget) cuts" if a tax reduction is approved, said House Minority Leader Peter V. Forman.

On a related subject, Weld backed a Beacon Hill Institute study that said his tax cut could create almost 21,000 new jobs.

"I think that's possible. I think it would definitely have a positive impact on jobs," Weld said.

But two local economists - Karl Case of Wellesley College and George Plesko of Northeastern University - questioned the study's findings.

"The 21,000 number is nowhere near reality . . . the net effect could be to lose jobs," Plesko said.

According to Case, most studies show the economic impact of tax cuts "is really very small."

David G. Tuerck, executive director of the Beacon Hill Institute, said, "These economists are forgeting about the incentives" to which business owners respond.

Democrats also renewed their attacks on the basic concept of a tax cut, with House Majority Leader Richard A. Voke saying it is highly unlikely that Congress will come up with additional federal aid for the $5.7 billion Boston Harbor cleanup project if its sees taxes being cut in Massachusetts.

Assistant Majority Whip Emanuel G. Serra said a $207 million tax cut would siphon off dollars needed to fund the education reform plan and for other projects such as the proposed megaplex.

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