Defensive Tone Marks New Dukakis Policies

When Governor Michael S. Dukakis tomorrow announces tax increases intended to prevent budget cuts in social programs, he will continue the agressively defensive tone initiated during the State of the State address last week.

Dukakis announced last week that he would not seek reelection in 1990, a move observers say will make it necessary for him to aggressively defend the policies of the last six years. The governor has decided that a tax increase is necessary to preserve his administration's social programs, State House sources say.

The revenue increase of an estimated $500-600 million dollars will probably come from "sin" taxes on alcohol and possibly cigarettes, as well as an increased gasoline tax and a cut in capital gains deduction. Administration officials say the hike would fund programs like employment training, aid to cities and towns and universal health insurance.

While in last week's address Dukakis lambasted his fiscal critics as "gutless wonders" and denied that further spending cuts were needed to reduce the state's $636 million budget shortfall, he hinted that new taxes would soon be proposed.

"He believes strongly in protecting the investments this state has made--in scholarships for students, protecting the long-term care of the elderly, continuing to deal with the problem of drugs, and continuing the compassionate approach of this administration toward the problem of homelessness," says Deputy Chief of Staff Paul Pezzella of the governor.

Known for his generally conciliatory approach in dealing with the legislature since he returned to office in 1983, supporters say he is now using the toughest language of his career. In his speech, he referred to critics as "chronic complainers" and "gloom and doomers."

Since Dukakis returned to Massachusetts after his defeat in the November presidential elections, he has been considering spending cuts, which many legislative leaders have called for, and the political risk of requesting a tax increase.

Some observers said that because the governor has already announced he will retire in 1990, he does not have to worry about the voters' reactions to a tax increase. Barbara Anderson, director of Citizens for Limited Taxation (CLT), has threaatened to sponsor a referendum repeal effort against a tax hike. CLT organized Proposition 2 1/2, the 1980 tax cap.

But former Boston City Councillor Lawrence S. DiCara '71, a Dukakis ally, says the increase shows that Dukakis is placing what is politically prudent.

"It may not necessarily be politically smart, but it is something he obviously feels good about and comfortable with," DiCara says.

And while the governor may be able to protect his legacy because he will not seek reelection, others contend the scope of his agenda will be weakened.

"His political position on the primary issue of the fiscal crisis and the budget has been stregnthened [by the announcement]," says former Democratic State Senator George Bachrach. "But he has seen the limiting of his possible agenda on the peripheral issues." He said last week, "As a lame duck, he will be unable to make demands upon the legislature on many legislative and social issues that are of concern to him."