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EDITORIAL
OP-ED; Proposed tax hikes for show, not dough
Thomas M. KEANE, Jr.

12/20/2002
Boston Herald
All Editions
033
(Copyright 2002)

Worried about Boston Mayor Thomas Menino's new tax proposals?

Don't be.

They're just part of a political game, a tried-and-true strategy the city has used many times in the past when threatened with cuts in state aid.

A few weeks ago, Menino submitted a package of new taxes to the Legislature. It included a 50-cent ticket surcharge on entertainment, a 10 percent tax on commercial parking, an increase in towing fees (to $75 from $12), and a 1 percent tax on all restaurant meals. All of these, by the way, require state approval.

Most of these are familiar proposals. In fact, throughout his political career, Menino has readily latched onto new taxes as a fix whenever Boston ran into financial difficulty.

That first happened back in 1990, three years before Menino became mayor. At the time, Gov. Michael Dukakis was threatening cuts in state aid. Then-City Councilor Menino responded by proposing two new taxes: a 5 percent tax on entertainment and a tax on alcohol, whether purchased at a package store or bought by the drink in restaurants or bars.

Neither went anywhere, but once he became mayor, Menino continued in the same vein. In 1997, he pressed for an increase in hotel and meal taxes for the convention center. In 1998 he proposed a 10-cent per car surcharge at every parking lot. In 2000 he advocated parking surcharges and other fees for a new Fenway Park. In 2001 he broached the idea of a new tax on telecommunications firms (something the City Council killed in this year). Last March, he pushed for an increase in towing fees, new fees on currently tax-exempt property and new restaurant taxes.

With a record like that, it's a safe bet Menino won't be taking a "no new taxes" pledge if he ever runs for governor.

In the wake of the narrow defeat of Question 1, the November referendum that would have abolished the income tax, it may seem foolhardy for any politician to be advocating new taxes. Is Menino crazy or just clever?

The answer is clever. In fact, Menino's tax proposals pose almost no political risk to him. The people most affected by his new surcharges and fees are not his constituents. Commuters, almost by definition, don't live in Boston. They make an easy target. The same is true of most theatergoers, diners and those who illegally park their cars.

Indeed, when it comes to imposing taxes on the people who actually live in Boston, the mayor would make even Carla Howell proud.

Last year, for example, housing advocates put on the ballot a proposal for a property tax surcharge under the so-called Community Preservation Act. Under that law, the state matches any money raised by the surcharge. Boston could have used the funds for things such as affordable housing and open space.

Rather than put his considerable political muscle behind the surcharge, however, the mayor equivocated, playing coy throughout the campaign season. He issued a weak endorsement just three days before the election. Many activists squarely blamed Menino for the CPA's defeat.

In addition, of course, if Menino really wanted new revenue, all he would have to do is persuade Boston voters to approve an override of Proposition 2 1/2. If approved, the city could collect up to $403 million more than it does now - vastly more than the potential shortfall in state aid the mayor fears might happen this year.

So why not do that? The answer is obvious. Menino's tax proposals aren't really about raising taxes. Even as he has put them forward, the mayor has consistently talked about the state more equitably sharing state aid - in other words, sending more to Boston.

The new taxes are a bluff. If you cut aid, Menino is saying, then new taxes are my only alternative. Taxes, of course, are anathema to legislators and so, ultimately, the city gets its way.

That happened in 1990 when Dukakis backed off on his state aid cut. It worked earlier this year as well, when threatened cuts of $30 million to $50 million didn't materialize.

And in 2003? John Rogers, chairman of House Ways and Means, is predicting cuts of $50 million to $100 million to Boston. In the past, Menino and his lobbying team have been remarkably successful keeping Boston at the front of the line for state aid. But this time around, the budget shortfall is more severe. Moreover, the threat of new taxes is less credible - there is simply no way incoming Gov. Mitt Romney will sign off on them.

And there is this worry as well: Threats, used too often, wear thin. Legislators this year might well call the mayor's bluff.

Tom Keane may be reached at TomKeane@TomKeane.com.

Graphic: MAYOR MENINO: He's up to his old tricks again.