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October 22, 2001 Dr. David G. Tuerck Dear Dave: I
wanted to drop you this note to tell you how extremely valuable the State
Tax Analysis Modeling Program (STAMP) is that you folks at Beacon Hill
developed, and to thank you for conceiving and implementing it, and working
with state-based groups like mine to put it to good use. Lansing is full
of talk these days about the alleged "need" to slow down or
cancel already-passed and scheduled reductions in the state's personal
income tax and Single Business Tax (SBT). A slowing in state revenues,
mirroring the economy as a whole, prompts such talk. Our view at the Mackinac
Center is that state government ought to discipline itself, reprioritize
its spending, and keep scheduled tax cuts in place if it really aims to
stimulate a soft economy. Using your STAMP model confirmed
that if the scheduled cuts were to be canceled, the result would be fewer
jobs and a less healthy economy – a fact that revenue analysts should
take into account mightily in their deliberations. Two weeks ago, a group of prominent state senators
in Michigan, as well as the Michigan Chamber of Commerce, approached us
with a request for our participation in Grafting
both an economic stimulus package and a reasoned defense of tax cuts.
We put the STAMP model to work and it worked beautifully. At both a Lansing
news conference with senators and representatives, and at testimony I
gave before both House and Senate committees, the STAMP model and its
findings were given a prominent hearing. When we had questions during
the process, your people were responsive and helpful. Many thanks to you and to the great team you have
assembled at Beacon Hill for this very valuable work! Sincerely, Lawrence W. Reed |
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*Please note that is a fascimile of the original correspondence endorsing BHI's work. It has been formatted for the web. Original copies of correspondence are available upon request. |