Romney refused to sign an anti-tax pledge put forth by
Grover Norquist's
Americans for Tax Reform while campaigning for office.[SUP]
[5][/SUP] In 2002, Romney presented a plan to balance the budget without raising taxes.[SUP]
[2][/SUP][SUP]
[6][/SUP][SUP]
[7][/SUP] Romney also favored gambling as a way to help balance the Massachusetts deficit.[SUP]
[8][/SUP]
Upon entering office, Romney faced a $3 billion deficit. Facing an immediate fiscal shortfall, the governor asked the state legislature for emergency powers to make "9C" cuts to the fiscal year 2003 budget. Romney cut spending and restructured state government.[SUP]
[9][/SUP] Romney, in concert with the legislature, created new fees, doubled fees for court filings, professional regulations, marriage licenses, and firearm licenses, and increased fees for many state licenses and services. In all 33 new fees were created, and 57 fees were increased, some that had not been adjusted in over a decade. Some of these fees included were service fees, such as charging businesses more to put up signs. Opponents said the reliance on fees sometimes imposed a hardship on those who could least afford them.[SUP]
[10][/SUP] The state of Massachusetts raised $501 million in new income in the first year of the fee increase program, more than any other state in the nation that year (New York was second with $367 million. Nine other states raised fees and fines by more than $100 million).[SUP]
[11][/SUP][SUP]
[12][/SUP] Romney increased the state gasoline delivery fee by two cents per gallon, generating about $60 million per year in additional revenue; raises the state gas tax to a total of 23 cents, compared with the national average of 28.6 cents per gallon.[SUP]
[3][/SUP]
Romney also implemented a "New Market Tax Credit"[SUP]
[13][/SUP] and extended the "Investment Tax Credit" during 2003.[SUP]
[14][/SUP]
A windfall in capital gains tax revenue caused by a previously enacted capital gains tax increase reduced the deficit by $1.3 billion. Romney approved $128 million in tax changes such as sales tax from purchases on the Internet[SUP]
[15][/SUP] and raised another $181 million in additional business taxes in the next two years; businesses called these changes tax increases, but Romney defended them as the elimination of "loopholes".[SUP]
[3][/SUP][SUP]
[16][/SUP][SUP]
[17][/SUP] Over his full term, over $300 million of such loopholes were closed.[SUP]
[3][/SUP][SUP]
[17][/SUP] The loophole actions, fueled by Romney's sense of rectitude and in the face of conservative and corporate critics, initially won plaudits from legislators as an example of political courage, before Romney backed away from further closings towards the end of his term.[SUP]
[17][/SUP] The state also cut spending by $1.6 billion...
