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• Senator Snowe Shapes the Future For Maine And the Nation's Children And Families
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Editorials, Letters to the Editor & Articles

Senator Snowe Shapes the Future For Maine And the Nation's Children And Families

Congress just finalized a budget resolution that lays the groundwork for a tax cut so controversial that, in an unprecedented move, the two Houses had to agree to disagree over the size of the tax cut. Maine's own Senator Olympia Snowe is at the center of the debate. Fortunately for Maine, and for the nation, she stood up to enormous pressure and insisted on reducing the tax cut by half. The question now is whether she and her colleagues can maintain a solid front as the final legislation is drafted.

President Bush and the Republican congressional leadership now are pushing for a tax cut package of $550 billion over ten years, which they say is needed to stimulate economic growth. But cutting taxes makes no sense when the nation faces a federal budget deficit again for the first time in years. It is even less reasonable to cut taxes in a time of war, when expenses for the military and homeland security are skyrocketing. These tax cuts would leave us with only two choices over the next decade-run a budget deficit larger than ever before, or cut funding for scores of programs that are critical to children and families, both here in Maine and in every state.

To make matters worse, a number of the specific tax cuts would also reduce state tax revenues-a double whammy. Because tax codes in many states, including Maine, link to federal tax codes, eliminating a federal tax provision often effectively forces a state tax cut at the same time.

Even in the best of times, the federal government should provide the states enough time to make thoughtful accommodations to changes in tax policy. But this is far from the best of times. Economic recession is causing a state fiscal crisis and wreaking havoc on services to children and families. Maine just reduced its biennial budget, in effect from July 2003 to June 2005, by $1.2 billion, and an additional $48 million gap projected for the next biennium is currently being closed. An additional $23 million has just been removed from the state budget for the current biennium, over and above the $240 million already removed from the budget ending in only a few weeks. These cuts removed $10 million from our education budget and $70 million from our mental health system.

Because Senator Snowe recognized that the originally proposed tax cut was irresponsible, she provided the swing vote when the Senate resolved 51-48 to reduce the amount of tax cuts to $350 billion - still huge, but much more practical. When House and Senate leaders met to negotiate the final budget resolution, Senator Snowe refused to vote for the final budget resolution until Finance Committee chairman, Sen. Charles Grassley of Iowa, promised that the final tax cut legislation would not exceed $350 billion in net tax cuts.

Now Congress is drafting the final tax cut legislation. Some House and Senate members developed legislatively creative proposals that would seem to specify only a short-term tax cut, but actually provides an opportunity down the road to extend it. Senator Snowe correctly characterized these maneuvers as gimmicks and said she cannot support the Senate proposal in its current form. We hope Senator Snowe continues her leadership and insists that the tax cut bill be a complete meal-not just the appetizer for more cuts later.

Politics is said to be the art of the possible. Sen. Olympia Snowe's artful leadership in the political arena will make it possible for children and families to continue receiving critical services. She deserves our gratitude for her courage and common sense on the tax cut issue.


Elinor Goldberg
Executive Director
Maine Children's Alliance
623 1868
egoldberg@mekids.org

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