Cue The Dueling Banjos Theme: Giuliani vs. Romney on Economic Conservatism

The Campaign Spot on NRO ^ | Octoiber 5, 2007 | Jim Geraghty

[Josh Painter]

Today, in my mailbox, I’ve been receiving dueling missives, reflecting a messy all-out fight between the Giuliani and Romney camps all day on who’s the more genuine economic conservative.

First on commuter taxes, the Romney people charged:

University Of Pennsylvania's Factcheck.Org: Mayor Giuliani "Fought To Keep" The Commuter Tax. "Also, it's worth noting that Giuliani's list doesn't mention one tax he fought to keep – New York City's commuter tax, which was lifted by the state Legislature in 1999. The mayor and the city council sued the state to maintain the tax – .45 percent of earned income for most of the people affected – but lost in court. The city had been collecting about $360 million per year from commuters from New Jersey, Connecticut and other parts of New York state." (Factcheck.org, "Giuliani's Tax Puffery," FactCheck.org Website, http://www.factcheck.org/, 7/27/07)

FACT: Mayor Giuliani Not Only Wanted To Keep The Tax, He Wanted To Raise It:

Mayor Giuliani Said That The Commuter Tax Should Be Increased Rather Than Eliminated. "Earlier today, Mr. Giuliani assailed the Legislature for seeking to end the commuter tax, saying that if anything, it should be higher." (Clifford J. Levy, "Leaders In Albany Plan To Eliminate Tax On Commuters," The New York Times, 5/13/99)

Mayor Giuliani Threatened Politicians Who Considered Voting For The Tax Cut. "At the City Hall event, Giuliani also warned Assembly Speaker Sheldon Silver (D-Manhattan) and any other city-elected backers of the tax cut: 'Voting against the interests of the city, somehow, some way, you will pay for it.'" (Dan Janison, "Former Foes United," [New York] Newsday, 5/17/99)

Then the Rudy campaign volleyed back:

“Mitt Romney has no choice but to hide behind false attacks - one look at his record as Governor shows he increased government spending, proposed millions of dollars in tax increases, and even raised taxes on New Hampshire commuters repeatedly.”

– Katie Levinson, Communications Director

Romney Raised Taxes On Out Of State Commuters – Including Those From New Hampshire – Repeatedly

As Governor, Romney Increased Income Taxes On Individuals Who Did Not Reside In Massachusetts, Including On Their Pensions, Deferred Compensation, And Sick And Vacation Pay. “A nonresident’s income relating to employment in Massachusetts or the nonresident’s trade or business in Massachusetts, including gain from the sale of an interest in the business, separation pay and deferred compensation and nonqualified pension income not prevented from taxation under federal law and income from a covenant not to compete, is subject to Massachusetts personal income tax regardless of the taxpayer’s residence or domicile in the year it is received and regardless of whether the taxpayer has actively engaged in a trade or business or employment in Massachusetts in the year of receipt, effective for tax years beginning on or after January 1, 2003.” (Goodwin Proctor Website, “Financial Services Alert — Developments Of Note,”, 3/11/03, Accessed 8/29/07; Massachusetts Department Of Revenue,

Romney Expanded State Income Tax To Include Income From Business “Whether Or Not The Nonresident Is Actively Engaged In A Trade Or Business Or Employment In The Commonwealth In The Year In Which The Income Is Received.” “Taxation of Nonresidents: Massachusetts gross income of a nonresident is determined solely with respect to items of gross income from sources within the Commonwealth. M.G.L. c. 62, § 5A(a). In relevant part, the prior law at 5A(a)(1) defined gross income from sources within the Commonwealth as the income ‘derived from or effectively connected with … any trade or business, including any employment carried on by the taxpayer in the Commonwealth.’ Effective for tax years beginning on or after January 1, 2003, this act effectively reverses a judicial interpretation of § 5A(a). Newly enacted § 5A(a) defines gross income from sources within the Commonwealth as any income ‘derived from or effectively connected with … any trade or business, including any employment carried on by the taxpayer in the commonwealth, whether or not the nonresident is actively engaged in a trade or business or employment in the commonwealth in the year in which the income is received.’ Thus, unless otherwise exempt, Massachusetts source income of a nonresident, regardless of the year in which it is actually received, will be taxable in the state.”

Then Romney campaign issued a statement, “He may try to talk like Romney when it comes to cutting spending, but unfortunately the mayor still budgets and taxes like Rudy:” with the following charges:

According To The Nonpartisan Citizen's Budget Commission, New York City's Budget Grew 37.6% Over The Course Of Rudy Giuliani’s Two Terms. "Over the course of two terms, the Giuliani administration increased City expenditures $12 billion, or 37.6 percent, in nominal dollars." (Citizens Budget Commission, 6/5/07)

The Citizen's Budget Commission Also Noted Giuliani Left A Budget Gap More Than Twice The Size Of The Gap Left By Mayor David Dinkins. "At the time of his last adopted budget, for fiscal year 2002, Mayor Giuliani left his successor with a projected budget gap of $3.1 billion for fiscal year 2003. In comparison, at the time of Mayor Dinkins’ last adopted budget, Mayor Giuliani inherited a projected budget gap of $1.3 billion for fiscal year 1995."

Giuliani's Successor, Mayor Bloomberg: "Mayor Bloomberg vowed yesterday he won't leave his successor in City Hall with the same financial mess he inherited from Rudy Giuliani when he first took office. And although Bloomberg never mentioned his predecessor by name, it was clear he was referring to the 2008 Republican presidential candidate. 'I'm determined that when I leave the city, we won't have, my successor, the first year in office, won't have enormous deficits to deal with,' Bloomberg said on his WABC-AM radio show." (Michael Saul, "I Won't Leave A Mess, Says Mike," [New York] Daily News, 6/2/07)

Romney press secretary Kevin madden called attention to this TownHall column by Cesar Conda, highlighting this passage:

By signing this pledge, Giuliani could make a commitment to no new taxes the cornerstone of his tax agenda. Yet, he refuses to sign the pledge and clearly remains open to raising taxes.

Then Madden issued a statement, “If the mayor’s words about wasteful spending sounded familiar today, I’d have to agree with you. Where did we hear this first? Oh, that’s right…. From a Romney for President campaign announcement dated September 19th.”

Now, one of Romney’s rivals who isn’t named Rudy is noting some of his comments from the past:

"Look, I was an Independent during the time of Reagan/Bush. I am not trying to return to Reagan/Bush." (Mitt Romney, 1994 Senate Debate, Boston, MA, 10/25/94,)

"I'm not running as the Republican view or a continuation of Republican values. That's not what brings me to the race." (From his 2002 campaign)

All in all, this is not one of those fights I particularly enjoy covering. Neither man has a perfect record, and that reflects the fact that they represented very liberal constituencies in New York City and Massachusetts. Calling attention to the flaws in the other just invites more counterattacks.

[Josh Painter]

The folks at Thompson campaign headquarters in Nashville have GOT to be munching down on popcorn and enjoying this...

[editor-surveyor]

Fitting headline, both of them are almost a match for the MR in Deliverance ;o)

[AlaskaErik]

They’re both flaming liberals and they will never get my vote. Not ever.

[yorkie]

Dueling Banjos - Deliverance

[JSDude1]

“Dittos” Alaska..me either.

[Shortstop7]

Heh heh. I was thinking the same thing.

[Rick_Michael]

[Caipirabob]

"Now squeel lahk a RINO, boyz...thas raght...mmmmm!"