Gary Palmer and Paul DeMarco are locked in a contentious Republican primary runoff in Alabama’s 6th Congressional District. For the past several weeks, a lot of attention has been given to the two candidates’ record on taxes. In one of the most conservative Congressional districts in the country, there are few things that could sink a campaign faster than being on record supporting a tax hike.
The DeMarco campaign ran an ad using a partial quote from 2003 in which Palmer appears to voice his support for then-Gov. Bob Riley’s Amendment 1, commonly referred to as the largest proposed tax increase in Alabama history.
“Here’s what Gary Palmer wrote about the billion dollar tax increase called Amendment 1,” the ad’s narrator ominously says.
Palmer is then quoted as saying, “I am of the opinion that the state needs more revenue and I would be willing to support a tax increase…”
But the full quote makes it clear that Palmer opposed Amendment 1.
I am of the opinion that the state needs more revenue and I would be willing to support a tax increase, but only on the condition that we first set in place some meaningful accountability measures. Unfortunately, the proposal currently before the people of Alabama falls well short of the mark.
(Video Below: “Alabama Conservative” ad by Paul DeMarco — more after the video)
Many in the media, including Yellowhammer, have harshly criticized DeMarco’s ad for being disingenuous. DeMarco has refused to concede that he unfairly tied his criticism of Palmer to Amendment 1. Instead, he has countered by saying Palmer’s statement leaves the door open to a tax increase, even if just in theory.
He has a point.
Palmer’s phrase “I would be willing to support a tax increase,” in any context, is tough for a conservative to explain, especially at the Federal level where Americans increasingly feel overtaxed and over-regulated.
Yellowhammer spoke with Palmer today and asked him to clarify in what scenarios he would be open to an increase in taxes.
“I have never supported a tax increase — not one,” Palmer said.
Palmer said that he did believe in 2003 that the State of Alabama was in a dire financial situation, which compelled Republican governor Bob Riley to propose a billion dollar tax increase.
“Around that time I had gone to a meeting led by Bill Beach at the Heritage Foundation,” Palmer said. “He was their number cruncher. The data he had showed that the Bush tax cuts were going to have a huge positive impact on states’ economies and that revenue would go up. That’s one reason why I knew Alabama didn’t need to raise taxes and why I didn’t support Amendment 1.”
Palmer said that his statement in the article referenced by the DeMarco campaign was him taking a “tactical” approach to influencing the debate on Amendment 1.
“It was a tactical article basically saying, ‘hey, let’s open up the books and look at where the money’s going. If you can prove your point, then we can have a discussion,’” Palmer said. “That’s how we strategically attacked the issue. We knew once they dug into the state budget they’d find hundreds of millions of dollars in savings.”
In addition to Amendment 1, Palmer also said he didn’t support Gov. Bentley’s proposal to borrow money from the Alabama Trust Fund to patch a hole in the state’s budget.
“Every time a tax increase has been proposed in state government in my entire career, I’ve opposed it,” Palmer continued. “I don’t think there could be any clearer indication of my stance on taxes than the fact that I’ve stood up to two Republican governors who I have great respect for and told them I couldn’t support what they were doing.”
Palmer also noted that Gov. Bentley appointed him to the Governor’s Commission on Improving State Government, which helped find a billion dollars a year in savings, roughly the same amount that would have been raised by Gov. Riley’s Amendment 1.
Yellowhammer pressed Palmer again, asking if there was any scenario whatsoever in which he would support a tax increase.
“If we were in a situation like a World War, then that might justify a tax increase. Other than that, no way,” Palmer said. “My position on Federal taxes is simple: our current tax system make us less competitive. It’s one of the reasons why our companies are moving off shore.”
What do you think about Palmer’s explanation? Let us know in the comments below or by tweeting @YHPolitics.
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