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Elections Turned on Taxes

by
Peter J. Sepp

Nov 7, 2002

Pundits who portrayed last Tuesday’s election results as a referendum on George W. Bush’s popularity are ignoring an equally powerful trend: pocketbook issues weighed heavily on Americans when they entered voting booths.

On the federal and state levels, candidates who had a clear vision of reducing taxes, restraining spending, and making existing tax cuts permanent tended to succeed, while those who muddled their messages often paid the price at the polls.

The elections not only altered the political balance in the Senate, but the fiscal balance too. According to National Taxpayers Union’s 2001 Rating of Congress, which graded lawmakers on 155 House and 194 Senate votes, defeated Senators Jean Carnahan (MO) and Max Cleland (GA) received “F” and “D” grades from NTU for their performance. They will be replaced, respectively, by Jim Talent and Saxby Chambliss, both of whom received “Bs” for their most recent year of service in the House. Minnesota Senator-elect Norm Coleman will occupy a seat once held by Paul Wellstone, who last earned an “F”.

On the House side, fiscally conservative candidates once thought to face tough fights – including Chris Chocola (IN), Scott Garrett (NJ), and Pat Toomey (PA) – easily captured or defended their seats. However, sitting Republicans (like Maryland Rep. Connie Morella) who were defeated or who trailed their opponents often scored below their party’s NTU average.

Taxes also dominated debates in at least five gubernatorial contests. Maryland candidate Bob Ehrlich made the $1.7 billion state deficit the single biggest indictment against the administration in which his opponent, Kathleen Kennedy Townsend, served. South Carolina maverick Mark Sanford made his plan to eliminate the state income tax a key element in his successful bid to upset incumbent Governor Jim Hodges.

Tennessee Republican hopeful Van Hilleary could not overcome lingering voter resentment of outgoing GOP Governor Don Sundquist, who repeatedly attempted to ram a new income tax down residents’ throats. Ironically, the opposition leader to Sundquist’s tax plan within his own party, Marsha Blackburn, handily won a seat in the U.S. House of Representatives.

Meanwhile, voters trounced many ballot measures to increase taxes, and even put limits on them.

Residents of several northern Virginia communities overwhelmingly nixed a proposed half-cent sales tax increase that proponents claimed would have been earmarked for transportation improvements (the southern community of Hampton Roads rejected a one-cent increase).

The ten-point margin of defeat is remarkable, considering that (1) northern Virginia is one of the worst-gridlocked regions in the nation; (2) opponents of the measure were outspent by over ten to one; and (3) an alliance led by the Democrat Governor and a Republican U.S. Senator spent considerable political capital in order to pass the referendum.

Washington State voters decisively enacted a law that will limit vehicle license fees to $30 per year and will require future voter consent for increased transportation-related taxes. For good measure, they also rejected a sales and gasoline tax hike. Georgians voted on a variety of tax issues, overwhelmingly supporting one that will increase the personal property tax exemption.

Although a proposal to repeal Massachusetts’ state income tax fell short, 55-45 percent, political observers say the relatively close margin on behalf of such a sweeping tax reduction in a liberal state sent a clear message to lawmakers who may be pondering tax hikes to close budget deficits first.

Oregonians, thought to be extremely receptive to a ballot measure that would have created a state-funded “single payer” health care system, proved hostile to the new income and payroll taxes that administrators could have levied in order to fund the scheme. They soundly thrashed the plan, 79 percent-21 percent. Missourians likewise beat back a tobacco tax increase.

Some claim that the 2002 election was devoid of defining issues, but in contest after contest taxes often made the difference. The writing is on the wall, not to mention the ballots of states across America: most voters want politicians to solve budget problems without raising taxes, and they want elected officials to keep their promises to reduce the burden on taxpayers.

Pete Sepp is Vice President of Communications with the 335,000-member National Taxpayers Union, a non-partisan citizen group founded in 1969 to work for lower taxes, less wasteful spending, and accountable government.

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