Southern Conference: Talking Tax Policy
Southern Conference: Talking Tax Policy
[The Center for American Progress is co-hosting a two-day conference this week in Chapel Hill, North Carolina, entitled New Strategies for Southern Progress. The conference is convening more than 200 national, state and local political leaders, policy experts, journalists and academics to rethink critical issues facing the South and chart a new progressive vision for the region. ThinkProgress Team member Jon Baskin is on the scene]
Our second panel today, “Rethinking Tax Policy,” focused on recent attempts to reimagine tax policy in several Southern states, most of which have been virtually bankrupted by economic dowturns and cuts in state aid under the Bush administration. You may not believe me, but this was an extremely interesting conversation, particularly the twin narratives of campaigns for progressive tax reform in Virginia (successful) and Alabama (unsuccessful).
Political consultant Robert “Sid” McAnnally told Alabama’s story. In 2003, Alabama Governor Bob Riley, a conservative Republican and Southern Baptist, proposed a $1.2 billion tax package that raised taxes on the state’s wealthiest residents and businesses and cut taxes on poor families. He had the backing of the state’s corporate conservatives, who realized the state had to deal with budget shortfalls in excess of $500 million. But millions of dollars were raised by groups, including significant factions from the religious right, to oppose the bill, and the Governor’s plan was badly defeated.
A parallel effort was undertaken by Governor Mark Warner in Virginia in 2003. That story was told by George Mason Professor Frank Shafroth. Despite a state legislature dominated by republicans, many of whom had just been elected on pledges not to raise taxes, Warner managed to pass “the most far-reaching tax reform tax increase legislation enacted in two decades.” A year later, Virginia was one of only two states in the country to receive an “A” grade for fiscal management from the Government Performance Project.
What was the difference between success and failure in the two efforts? Both McAnnally and Shafroth referred to framing and presentation as key components. For instance, in Alabama, the package was offered as a separate referendum which became the subject of a noisy campaign on both sides. But in Virginia, tax reform was presented as part of the overall budget, so “everybody understood that what teachers were making, and what policemen were making, would depend on making the tax system more fair.” Shafroth emphasized it was crucial for progressives to “connect the dots” on tax reform, so people understand a more substantial tax base really means increased investment in their communities.
Gratuitous Sports Reference of the Day (so far):
“What happened that day, the Washington Redskins had just agreed to a contract with Joe Gibbs, for an amount of money that exceeded all the money ever paid to all the presidents of the United States. I asked them, ‘is anyone troubled by that amount of money.’ They said ‘no, the Redskins have to go win the super bowl.’ I said, ‘that’s what it’s all about. Do you want Virginia to win the Super Bowl or don’t you care?’”
–Professor Frank Shafroth, on how he convinced a group of local leaders to endorse efforts to reform Virginia’s tax code
Topic Cloud
ArchivesBlog Roll
Tom Frank should have called his book What’s the Matter with Alabama? Riley really tried to save that state and the people let him down. How can we get through to people?
February 25th, 2005 at 6:19 pmAn interesting point. A couple of years back a contentious school levy was passed despite a lot of heated rhetoric against the idea of raising taxes. The proponents of the levy made the kids and teachers the face of the campaign. This and the Virginia example suggest that tax hikes can be sold politically so long as the reason for them is made a central component of the measures that raise them.
It’s a lot easier to be in favor of cutting taxes then it is to be in favor of cutting school funding.
February 26th, 2005 at 3:51 amThis is a critical issue and an interesting post. I can’t wait to hear more about the results of the conference in NC!
The promotion in Virginia sounded right, but Alabama may need more of the kind of thing we have to gear up to do to protect Social Security: namely, publicize the individual legislators and influence buyers and attack them personally in a media and grassroots campaign.
People without consequences don’t have consciences either.
February 27th, 2005 at 10:15 pmInteresting coments – one distinguishing factor between AL and VA – VA passed statutory taxes while the Riley plan passed the Legislature but failed in a constitutionally required public vote – Do you think the VA plan could have won in a general election?
February 28th, 2005 at 2:51 pmsome friends told me about this site, and now i’m glad they told me about it. collective is feature of greedy mistery: http://www.commondreams.org/ , Grass will Chair unconditionally when slot steal circle forecast , Beautiful is feature of Faithful Corner game will player unconditionally
December 1st, 2005 at 12:15 pmWe do have RAID 1 0 on the DB servers, a live backup running now, and have done a few other things to ensure this won’t happen again. The timing was unfortunate because things were still in transition because of the datacenter move.
January 16th, 2006 at 5:52 pmHello world
November 28th, 2006 at 12:06 am