Bumper Crop of Ballot Measures Could Signal Major Fiscal Policy Shifts at All Levels, Report Finds

(Alexandria,VA) – Like most elections, voters face many important decisions next month, buta large number of state and local ballot measures this year could have anespecially profound impact on tax, spending, and other fiscal policies. Becausethese vital contests are often drowned out by the din of candidates on thecampaign trail, the 362,000-member National Taxpayers Union (NTU) has publishedthe 2010 General Election Ballot Guide: The Taxpayer’s Perspective, which analyzes hundreds of ballot questions in over 30states.

     “Sometimesthe most important entries on ballots aren’t the names of men and women, butthe names and numbers of measures,” NTU State Government Affairs Manager andballot measure project leader John Stephenson said. “The 2010 General Election Ballot Guide: The Taxpayer’s Perspective not only informs citizens about issues that could affecttheir states and communities for many years to come, it also identifies trendsthat help to identify the national mood on fiscal policy. Those trends willlive on long after the parties tally their wins and losses.” 

     NTU’sTaxpayer’s Perspective is not just aguide to initiatives on the state and local ballots across the country; additionally,it provides evaluations of how these initiatives may harm local economies, growthe size of government, or pinch families’ pocketbooks even further. However, voterswill also be presented with opportunities to exercise a greater degree of controlover government tax, spending, and regulatory powers. Examples include:

  • Washington State Initiative 1098 would imposea state-level income tax there for the first time, beginning on individualswith incomes above $200,000 but later possibly extending to other groups at theLegislature’s discretion.  This wouldknock Washington off the list of just nine states without a broad-based incometax. On the other hand,Washington’s Initiative 1053 would require two-thirds of the Legislature or amajority of voters to raise taxes in the future, while Initative 1107 would rollback taxes on candy, bottled water, and soft drinks.
  • Proposition 23 on the California statewide ballot would suspend the California Global Warming Act, and all of its mandates until unemployment eases. Taxpayer advocates in the state argue that this measure would prevent substantial hikes in energy costs on struggling consumers. Meanwhile, Proposition 25 would do away with a two-thirds legislative vote requirement to pass a budget but Proposition 26 would extend a two-thirds vote stricture on increases in many fees.
  • Voters in “Deep Blue” Massachusetts will consider reducing the state’s sales tax from 6.25 percent to 3 percent, as well as repealing in most cases the sales tax on alcoholic beverages.
  • Proposition A on the Missouri statewide ballot would take away the authority for cities to levy an earnings tax, require voter approval for the continuation of earnings taxes where they currently exist, and provide for their eventual phase-out.  
  • In a sign of opposition to the federal health care reform law signed earlier this year, voters in three states – Arizona, Colorado, and Oklahoma – will decide on proposals affirming individuals’ choices on purchasing insurance or participating in government plans.
  • Coloradans could also significantly reshape state and local finances through three measures to reduce income and other taxes, strengthen property tax limits, and restrict state and local debt.
  • Measures in several states, including Oklahoma, South Carolina, and Virginia, would make major changes to their budget structures, such as beefed-up “rainy day fund” reserves.
  • Political ethics issues appear on many election slates, including a recall mechanism for the Governor (Illinois), a 20-year ban on holding office for certain convicted felons (Michigan), and a ban on state elected officials raising their own pay during a current term of office (Louisiana).

     The NTU report also digs deeply into local ballot measurecontests, where – besides commonly proposed bond issues and property taxincreases – several emerging themes were identified. These include term limitsfor local officeholders, tax hikes on telecommunications and tourism, andreforms to government worker compensation systems.

     NTU is anon-profit, non-partisan citizen group founded in 1969 to work for lower taxes,smaller government, and economic freedom. Note: 2010 General Election Ballot Guide: The Taxpayer's Prospective is available online at www.ntu.org; a follow-onanalysis of ballot measure election results will be published after November 2.