Editing 78-03-A6 (section)

= Tax Limitation 1978 Style =

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=== Transcript ===
If you live in California you know by now that the sky is
scheduled to fall on June 6. If you live in Massachusetts, the
date hasn't been set, but the sky is definitely loose and expected
to fall between now and 1980.

Who do we have to thank for these timely warnings? None other
than the good folks who brought you record-breaking public budgets,
burgeoning bureaucracies and ever-higher taxes.

And what is going to cause the sky to fall? In California, it
is called the Jarvis-Gann property tax limitation initiative--Proposition
13 on the primary election ballot. In Massachusetts it is the
Tax Limitation amendment and it is wending its way through the Bay
state's complex initiative process on its way to the ballot.

The Massachusetts amendment would limit state spending to a
fixed percentage of the public gross income. Some 56,000 signatures
were required to petition the legislature in Boston to take up the
matter. Proponents got 87,000. One-quarter of two consecutive state
legislatures must vote to put it on the ballot (some 70 votes).
Donald Feder, who heads Citizens for Limited Taxation, says they
have about 40 votes now. Their timetable is to get on the ballot by
1980.

Officials in Massachusetts are squirming, just as they are in
California. Governor Michael Dukakis has said the measure would put
the state --QUOTE-- "in a fiscal straitjacket"--UNQUOTE-- to which
angry taxpayers are probably crying, "Right on!".

In California, Howard Jarvis, a 75-year old veteran battler of
high taxes, stunned the spenders in Sacramento when his petition
drive netted more than 1.2 million signatures--an all-time record.
The measure, if passed , will limit property taxes to one percent of
assessed valuation. To prevent a tax ''shift" from local to state
government, it would require a two-thirds vote of the legislature
to enact any change in state taxes.

Jarvis contends that local essential services need not be cut
back; that intelligent pruning combined with distribution of the
state's huge treasure surplus (nearly $3 billion) back to the local
level will solve the problem.

Meanwhile, some of the spenders in the legislature--scared stiff
that they will no longer be able to buy votes with other peoples
money--are sounding like a Greek chorus. They are crying "tax shift"
and warning that state income and sales taxes will have to go up to
make up for local budget cuts.

Their assumption is that government costs can only go up, never
down. Jarvis is getting ready to cut them off at the pass by collecting
signatures for yet another initiative. It would limit even further
the legislature's ability to raise sales and income taxes. If both
measures pass, the legislators will finally have to do what they fear
most--make choices and set spending priorities.

This is Ronald Reagan.

Thanks for listening.
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=== Details ===
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<TR><TD WIDTH="150">Batch Number</TD><TD WIDTH="150">{{PAGENAME}}</TD></TR>
<TD>Production Date</TD><TD>02/20/[[Radio1978|1978]]</TD></TR>
<TD>Book/Page</TD><TD>[https://www.reaganlibrary.gov/public/2024-07/40-656-7386263-014-007-2024.pdf#PAGE=49 Online PDF]</TD></TR>
<TD>Audio</TD><TD></TD></TR>
<TD>Youtube?</TD><TD>No</TD></TR>
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===Added Notes===

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