Gary Pearce posted on April 15, 2009 14:08
Jim Hunt – one friend calls him “the Eternal Governor” – is still stirring it up. Just like he did when he was pushing his programs through the legislature in the 90s, he put together a bipartisan business group behind tax reform for North Carolina.
Today, the Republican and Fox News-led “Tea Parties” are convening across America. The only message Republicans have today seems to be No Taxes. They hope it still has the magic it did when Ronald Reagan was President.
Democrats are understandably jittery about the issue. They’ve lost elections on taxes before.
Hunt himself later admitted he proposed too much in tax cuts after Gingrich & Co. won big in 1994 – and took the N.C. House.
Hunt pushed through one big tax increase when he was governor: the gas tax in 1981. It took every ounce of political muscle he had. Carter and the Congressional Club jumped into the fight as a way to hurt Hunt before 1984.
We worried about the political impact, and we polled on it heavily. We found that the gas tax never was a political liability. All Hunt had to say was: I did it so we would have good roads. People thought that took guts.
In 1961, Terry Sanford had to pave a lot of roads and name a lot of judges to get a food tax through the legislature to pay for his education program. It had to be a food tax. Sanford found that legislators would vote for it because it would apply to “everybody.” That was code for African-Americans.
The tax hurt Sanford politically. It probably kept him from running against Sam Ervin for Senate. And it hurt his candidate, Richardson Preyer, in 1964.
As late as 1986, Jim Broyhill tried to use “Terry’s Tax” against Sanford in their race for the Senate. Sanford just put the tax in his TV ads. He said it proved he had the courage to do unpopular things that were right. Sanford won.
Mike Easley passed tax increases in 2001. His own supporters warned it would cost him reelection. It didn’t.
The lesson here is for Governor Perdue. There will be no tax reform until the Governor puts all her political weight behind it. It will be a tough political fight, and there is no guarantee she would win. But this is guaranteed: Without her, it won’t happen.
The plan Hunt laid out has some attractions. Perdue could say she’s cutting income taxes and sales taxes.
Perdue has compared her situation to that facing O. Max Gardner in the Depression. Gardner seized the occasion to reform the state’s tax structure.
Taking on the tax fight – against tough opposition and against the grain – is not inviting. It could be political suicide. Or it could write your page in history.
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