AARP Warns Members About Hidden Details in Taxpayer Bill of Rights (TABOR)
By: Source: AARP.org Date Posted: 2006-08-07 14:42:49.299436-04:00
by Bill Novelli, CEO, AARP, from the AARP Bulletin, April 2006
A wolf found great difficulty in getting at the sheep, owing to the vigilance of the shepherd and his dogs. But one day it found the skin of a sheep that had been flayed and thrown aside, so it put it on over its own pelt and strolled down among the sheep. The lamb that belonged to the sheep whose skin the wolf was wearing began to follow the wolf in the sheep's clothing; so, leading the lamb a little apart, [the wolf] soon made a meal of her, and for some time he succeeded in deceiving the sheep, and enjoying hearty meals. The moral of the story: Appearances are deceiving.
We would do well to remember the lessons of Aesop's famous fable on the consequences of deception in considering proposals for a "taxpayer bill of rights—or TABOR—that are gaining momentum around the country. In a state-by-state movement, proponents are promoting TABOR measures as a way to shrink government by strictly curtailing revenues and expenditures. TABOR proposals were introduced in about half the states last year and could be on the ballot in as many as nine states this fall.
At first blush, TABOR appears attractive to many people. Supporters argue that limiting the rate of revenue and spending growth to inflation plus population growth is reasonable. They claim that TABOR would take power away from politicians and put it back in the hands of the people by requiring that any tax increase be approved by voters. On the surface, that may sound good. But as we learned from Aesop, appearances can be deceiving. And we know these TABOR arguments are deceiving. The only state with a TABOR law on the books is Colorado, which adopted it in 1992. And Colorado's experience has been anything but attractive. In the flush years of the 1990s, taxpayers received refunds from excess revenues, and taxes could not be increased without their approval. Later, revenues dwindled, and Colorado policymakers, since 2001 alone, have been forced to make $1 billion in spending cuts. The state has fallen from among the best to among the worst for child immunizations and kindergarten enrollments, road maintenance has been deferred, and fees have been raised for everything from park entry fees to marriage certificates. Even though Colorado has the nation's seventh-highest per capita income, after 14 years of TABOR, the state:
- has the nation's lowest ratio of teacher salaries to average private-sector earnings (teacher pay is 7 percent below the national average);
- has fallen from 26th to 32nd in K-12 education funding, the fourth-largest drop in the nation; has seen high school graduation rates fall from 76 percent in 1990 to 70 percent in 2004;
- has seen on-time immunization rates drop to the lowest in the nation, in 2002-2003;
- ranks 45th in the nation on the share of low-income individuals enrolled in Medicaid; and
- has seen the proportion of children without health insurance rise from 15 percent in 1991-1992 to 27 percent in 2002-2003, while the national average declined from 21 to 19 percent.
In November, Colorado voters decided to suspend TABOR for five years, giving up their tax refunds to restore needed services that had been slashed. In short, TABOR is less about a taxpayer bill of rights than it is about reducing government and cutting government services that help people of all ages achieve a better quality of life. Once people understand what TABOR really is, and its consequences, support for it declines. So, when this wolf in sheep's clothing comes calling in your state, don't be deceived. Recognize it for what it is and the harm it can do. And remember another familiar adage: You get what you pay for.
Other Resources
- Learn more about the impact of TABOR in Maine at www.notabor.org
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