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"Tax rates on many corporations almost doubled because of legislation supported by Romney," Boston Science Corporation chairman Peter Nicholas wrote in the January 6 Boston Herald. Romney boosted taxes on subchapter S corporations owned by business trusts from 5.3 percent to 9.8 percent, a four-fifths increase. Nicholas called this "an important disincentive to investment, growth, and job creation."
"Corporate taxes went up $210 million under Romney," the Herald editorialized. "And we wonder why companies look north, south, east and west, anywhere but Massachusetts, to expand?"
While Romney sped a $275 million capital-gains tax rebate, scored property-tax relief for seniors and secured a two-day, tax-free shopping holiday, he imposed $283 million in business "loophole closures" and $501.5 million in increased fees on marriage licenses, gun registrations, gasoline deliveries, real-estate transfers, and more. Under Romney, the Tax Foundation calculated, Massachusetts fell from America's 29th most business-friendly state to No. 36.
One of Romney's tax measures particularly should interest Michigan voters. As U.S. Senator John McCain (R- AZ) on Saturday told journalists covering his presidential bid in Michigan, "Governor Romney says he supports the [automobile] industry, yet when he was running for the governor of another state, he wanted to raise the tax on SUVs."
Indeed, candidate Romney promised to "rework" Massachusetts' automobile excise tax to favor fuel-efficient vehicles. As John Gregg explained in the September 5, 2002 Milford Daily News, lower taxes on such cars "could be offset by higher charges for new gas guzzlers, the campaign acknowledged." Romney also called for a 10-year sales-tax holiday for hybrid gas/electric cars, such as the Toyota Prius. At the time of Romney's proposal, such vehicles were much likelier to roll off of assembly lines in Yokohama than Ypsilanti.
"This is a substantial tax savings for the buyers of these vehicles," Romney's spokesman, Eric Fehrnstrom, told Gregg at the time. "We want to encourage their purchase."
Romney's idea won immediate applause -- from the Left.
"It's an extremely popular idea in some environmental circles," said Seth Kaplan, a senior attorney with the Conservation Law Foundation. "It makes an enormous amount of sense to reward what is good behavior from a societal point of view."
"Conceptually, it makes a lot of sense," said Democratic State Senator David Magnani. "It's a good Democratic idea, a good environmental idea."
Massachusetts tax fighters, however, did not join in the liberal applause. As Barbara Anderson, chief of Citizens for Limited Taxation, told John Gregg, Romney's SUV levy "would be a tax increase, and that is certainly unacceptable."
As Michigan voters consider Mitt Romney's prescription for economic renewal, they would be wise to repeat these words: Don't try this at home.
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