Keverian Withdraws Tax Bill From House

BOSTON--House Speaker George Keverian '53 withdrew a $1- billion-a-year tax bill from floor consideration yesterday, admitting he didn't have the votes to approve any tax hike that would come close to balancing the state's budget.

But the Everett Democrat said he was not abandoning the fight to raise more money.

"At the present time, as we join here in this chamber, there are not sufficient votes, a majority of votes, for any tax proposal of a general nature, a comprehensive tax proposal that we have offered," Keverian said. "That is clear."

The tax bill was sent back to the House Ways and Means Committee, which could report it to the floor again if lawmakers change their minds about taxes.

Keverian's decision came after two days of discussions with House Democrats where first a sales then an income tax and then the sales tax again failed to attract the 81-vote majority needed to pass.

That leaves the state with a $500 million deficit that will have to be solved through further budget cuts.

Administration and Finance Secretary L. Edward Lashman reiterated yesterday he would reduce the $1.2 billion June local aid payment to cities and towns by whatever amount was required to balance the budget.

But some legislators, including Reps. Gregory Sullivan (D-Norwood) and Frank Hynes (D-Marshfield), called for another round of general spending cuts to bring the budget into balance. Last month, legislators approved a $351 million cuts and savings package that was reduced to $300 million after vetoes by Gov. Michael S. Dukakis.

House Republicans joined in the call for further cuts.

"You have members on your side of the aisle, and we have members on our side of the aisle who are looking for further cuts," said Rep. Kevin Poirier (R-North Attleboro), a member of the GOP leadership team.

Keverian's decision also came a little more than six weeks after he was forced to shelve another tax package when the House, on Dec. 1, rejected a capital gains tax increase by a 30-vote margin.

The Legislature approved one tax increase last year, a 15 percent, 18-month income tax increase to pay off the $425 million fiscal year 1989 deficit and overdue Medicaid bills. But that tax increase did not provide any additional dollars for the current fiscal year.

"The facts are the votes are not there, but this does not mean the end of the fight. Absolutely not," Keverian said. "There will be a day when everybody here will realize we have to fill that gap, and cuts alone won't do it."

Dukakis said his administration has already made substantial cuts to reduce the government's size and said the House must pass new taxes.

"To continue without action on this is jeopardizing our children's education, the future of our communities, we're jeopardizing the gains that we've made in this state," Dukakis said after Keverian shelved the latest tax plan.

Keverian said 31 other states have raised taxes in the past year, but they did not have a governor who ran for president and lost.

"Massachusetts is in a situation largely because of a political factor, not an economic one," Keverian said. "Our governor ran for president. He talked about an economic miracle. It turned out after his defeat for the presidency the miracle did not exist. People thought he lied. I don't People thought we lied. We didn't."