TABOR Background

TABOR is a conglomeration of two ALEC model bills.   The“Super Majority Act” proposes to require a 2/3 majority to raise taxes, and the “Tax Expenditure and Limitation Act” limits spending to growth plus inflation, establishes a rainy day fund and requires revenues to be returned to taxpayers.  TABOR works on a formula that ratchets down spending, but TABOR does not have a governor or legislative-controlled “escape hatch” to allow states to deal with fiscal emergencies.

TABOR limits government spending to growth in population plus growth in inflation and require a two-thirds vote in both houses of the legislature to increase income, sales and franchise taxes. Voters would also need to approve tax increases or lift spending limits via referendum. The bill would establish a “rainy day” fund and send all surpluses directly back to taxpayers.  Only three states—Colorado, Missouri and Oregon—have all three limits.

In 1992, Colorado voters passed the Taxpayer Bill of Rights, a Constitutional amendment limiting revenue growth, by 54 percent. The effects have been disastrous.  Republican Senate President John Andrews recently lobbied to retain $350 million above the amount that TABOR would otherwise allow the state to spend. . . . Andrews said the alternative would be simplistic proposals that would outright repeal TABOR or Amendment 23.

During Spring of 2004, Campaigns are waging in Maine, Tennessee, Oregon, Wisconsin, and New Hampshire as part of a broader Taxpayer Bill of Rights (TABOR) campaign.

home | login | my profile | join our network | about us | contact us | forums | site map