TABOR author believes
it will benefit Maine

Copyright © 2006 Blethen Maine Newspapers Inc.

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The Maine Taxpayer Bill of Rights initiative will enable Maine to both constrain the growth of government and stabilize the budget over the business cycle. It is based on model legislation I helped to design for the American Legislative Exchange Council, legislation introduced in more than a dozen states.

The Maine Taxpayer Bill of Rights limits the growth of government spending to the sum of inflation and population growth. Surplus revenue above that limit is first allocated to a budget stabilization fund. When the cap is reached on the budget stabilization fund, additional surplus revenue is offset by tax rebates or tax cuts. The stabilization fund is used to offset revenue shortfalls in periods of recession.

With this Taxpayer Bill of Rights in place, Maine will avoid the so-called "ratchet down" effect encountered in Colorado. Opponents of this legislation often attack it by citing the problems encountered with Colorado's TABOR Amendment, and failing to point out the important refinements that are designed to eliminate this "ratchet down" effect." This is the tactic that Jeffrey Austin (letter, Sept. 2) has chosen to use in attacking Maine's Taxpayer Bill of Rights.

What is particularly egregious is that Austin has quoted me out of context. Maine's Taxpayer Bill of Rights, unlike Colorado's TABOR Amendment, will both constrain the growth of government and stabilize the budget. It will enable Maine to compete for much-needed business investment and jobs.

Barry W. Poulson

Professor of Economics

University of Colorado

Boulder

poulson@colorado.edu