October 22, 2001

Dr. David G. Tuerck
Executive Director
The Beacon Hill Institute for Public Policy Research
Suffolk University
8 Ashburton Place
Boston, MA 02108-2770

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!


Lawrence W. Reed
Mackinac Center for Public Policy



*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.