Cato Institute Gives Romney Grade of "C" on Fiscal Policy
By MassNews Staff
       The Cato Institute, the Libertarian thinktank in Washington D.C., awarded Gov. Mitt Romney only a Fair Grade of “C” on his handling of fiscal policy in Massachusetts in their annual report on America's Governors. By comparison, both the governor of New Hampshire Craig Benson (R) received an "A", as well as Gov. Arnold Schwarzenegger (R) of California. Even John Baldacci (D) of Maine received a “B”.
       The report points out that “Romney is often talked about as a presidential candidate in 2008, but to make that realistic he needs to score big policy victories on taxes.” The grades awarded are based on a governor's ability to reign in spending, as well as restrain taxes.
       Below is the summary of Mitt Romney's evaluation, which can be found on page 42 in the Governor's Report here. (Adobe Acrobat Required)

       Mitt Romney became a prominent public figure when he rescued the 2002 Olympics from a $379 million deficit. When incumbent Republican governor Jane Swift announced that she would not run for reelection, Romney stepped into the race. He scared some conservatives when he said that he was opposed to tax increases but he couldn’t rule them out. His first budget, presented under the cloud of a $2 billion deficit, balanced the budget with some spending cuts, but a $500 million increase in various fees was the largest component of the budget fix. Romney’s second budget proposal basically kept real per capita general spending frozen. In the first indication that he intends to actively cut taxes, Romney announced in May 2004 that he wants to cut the top income tax rate from 5.3 to 5 percent.

      As expected, the legislature did not pass the tax cut. Romney is often talked about as a presidential candidate in 2008, but to make that realistic he needs to score big policy victories on taxes. The governor would be well advised to take a page from the Paul Cellucci playbook: go to the people with a tax-cut referendum. Cellucci’s tax cuts would not have been possible without the governor’s going over the heads of the legislature. The Romney tax cuts may not be possible without that step either.