NFIB Members Support TABOR II Proposal

NFIB members in Maine voting on a special survey regarding the Taxpayer Bill of Rights proposal (TABOR II) on the November ballot indicated very strong support for the measure.  Members voted 79% to 16% in favor of the measure.
 
At the same time NFIB members were mixed in their views on the proposal to cut the motor vehicle excise tax, which also is on the November ballot.  Members voted 48% “yes” to 47% “no” on whether to support the measure.
 
Nearly 200 members responded to the special survey.
 
This latest Taxpayer Bill of Rights proposal (TABOR II) limits growth in annual state spending in the General Fund, Highway Fund, and Other Special Revenue Funds to the rate of increase in population and inflation (never less than zero).  For the General Fund and Highway Fund budgets, revenues exceeding the expenditure limitation must be distributed by directing 20% of the excess to a budget stabilization fund and 80% of the excess to a tax relief fund.
 
A state tax increase would require a majority vote in the legislature and by the voters in referendum.  Annual indexing of gas taxes also would be subject to voter approval each year.  State expenditure limits may be exceeded by a majority vote of the legislature and by the voters in referendum.
 
Majority approval by voters would be required before towns and counties could exceed expenditure limits already contained in state law.  The TABOR II proposal also caps local spending growth to average real personal income growth plus inflation, instead of the current formula of income growth plus a “property growth factor”.
 
A previous TABOR proposal was turned down by voters in the November 2006 election (46%-Yes, 54%-No).  The 2006 proposal was more far-reaching than the 2009 proposal.