Keverian Presses Leadership for Tax Hike

House Speaker George Keverian '53 (D-Everett) and the House Ways and Means Committee are drafting an $800 million tax package to be introduced later this week, State House leaders said yesterday.

House sources said Keverian is strongly pressuring Democratic party leaders to support the tax package, which includes a state sales tax increase from 5 percent to 6.5 percent, doubling of the capital gains tax from 5 percent to 10 percent and a six-cent increase in the gasoline tax.

The Boston Globe reported yesterday that Keverian telephoned several House chairs over the weekend and told them they would have to resign their positions if they refused to support the package.

Rep. Mark Roosevelt '74 (D-Boston) said the package would be attacked heavily on the House floor but will probably pass because of Keverian's strong influence. Last week, key lawmakers, including Senate President William M. Bulger (D-Boston) and House Majority Leader Charles F. Flaherty (D-Cambridge) said the introduction of a tax hike was inevitable.

"Nobody likes to raise taxes...you need some pressure," Roosevelt said.

Rep. John H. Flood (D-Canton), chair of the Taxation Committee and an outspoken opponent of new taxes, said the speaker did not contact him this weekend about the package. He cautioned that Keverian should not attempt to introduce a new tax package without consulting his committee.

Flood, who announced his canidacy for the 1990 gubernatorial race last month, said he will not change his position on taxes. He added that he sees no reason why Keverian should ask him to step down as committee chair.

"I see no reason to resign. Time has proven me correct in almost every instance," Flood said.

"[A tax package] is economically counterproductive," he said. "We don't want to solve a long-term problem with a short-term solution."

Keverian's move to put pressure on House Democrats comes after sharp criticism of the speaker from both parties. Many lawmakers have attributed the legislature's inaction in response to a $720 million state budget deficit to a lack of leadership and direction from Keverian.

Two weeks ago, the House passed a deficit reduction bill estimated at $368 million, which the Senate will consider later this week. Several House members cited Keverian's lack of strong leadership as a major factor in the defeat of one of the bill's provisions, which would have allowed the state to reclaim $46 million in beverage deposits form the soda and beer industry.

The tax package, along with several other fiscal crisis solutions, was discussed privately last week by state Democratic leaders including Gov. Michael S. Dukakis, Keverian, Bulger, Flaherty and Richard A. Voke (D-Chelsea), chair of the House Ways and Means Committee, during a meeting called by the Senate president.

Dukakis has repeatedly asked the legislature to consider new taxes as a solution to the state's budget woes.