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Monday, July 18, 2005

The spirit of tax rebellions

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By

TAX REVOLT: THE REBELLION AGAINST AN OVERBEARING, BLOATED, ARROGANT, AND ABUSIVE GOVERNMENT

By Phil Valentine, Nelson Current, $24.99, 256 pages

More than a quarter century ago Californians rebelled against an overbearing political establishment. Property assessments were climbing, state expenditures were rising, the budget surplus was expanding and government officials were lying. Voters responded by passing Proposition 13, triggering tax revolts nationwide. The movement has waxed and waned over the years, but the stories rarely cease to inspire. As does the tale spun by Phil Valentine, a Tennessee talk-radio personality who helped stop the bipartisan drive for a state income tax. "Tax Revolt" offers a delightful read, detailing betrayal and deceit, and big-bucks lobbying and horn-honking rallies.

The story began in 1999, when Republican Gov. Don Sundquist abandoned his anti-tax campaign pledge to push a state income tax. Mr. Sundquist was joined by the legislature's Democratic leadership and a who's who of special interests. The campaign was based on two premises. First, only tax increases could preserve vital programs. For instance, the teachers union raised a hue and cry about protecting "children." Second, tax advocates played the demagoguery card, demonizing their revenue targets. They attacked businesses and wealthy individuals who supposedly weren't paying their "fair share."

But the governor made the mistake of challenging Mr. Valentine to read the budget and find programs to cut. The latter started asking questions. Why, for instance, was the state spending $24 million for four new golf courses? As in California in 1978, the fiscal crisis, reflected excessive spending. The objective of the tax increase was not more money to provide critical social services or close a budget gap, but more money to fund more special-interest projects. As popular opposition rose, supporters realized that their only hope for victory was stealth and deceit.

Which is whereMr. Valentine begins his story. On Friday, June 9, 2000, he received a phone call alerting him that the legislature planned an unpublicized Saturday session to rush through the tax. "This Saturday vote," his informants explained, "was not merely happenstance. It was a concerted effort ... to pull the wool over everyone's eyes."

Mr. Valentine called his producer and arranged a special Saturday performance: "I knew I couldn't live with myself if I didn't at least put up a fight." He joined with another talk-show host, Steve Gill, to set up outside the Capitol. Thousands of citizens soon gathered. Hundreds of others circled the legislature honking their car horns. Plans for an immediate vote collapsed, as nervous lawmakers dithered.

The legislature reconvened on Monday, but Mr. Valentine and Mr. Gill, backed by more protesters and horn honkers, also returned. Weeks, months and years of political intrigue ensued. The politicians and interest groups wanted more money. And they stopped at nothing to get it.

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