Feldstein to Lead Cellucci's Effort to Lower Taxes, Create Jobs

Acting Governor A. Paul Cellucci yesterday appointed Baker Professor of Economics Martin S. Feldstein '61 to lead an effort to lower taxes and to create new jobs for the Commonwealth.

Feldstein will be part of Cellucci's new transition team, which is made up of specialists in economic and fiscal policy, education, family and health care and quality of life.

The transition team, which will work under Lieutenant Governor Jane Swift was designed to "develop a fresh blueprint to implement Cellucci's and Swift's goals," according to the governor's office Web site.

Over 100 members from both the private and public sectors will work to develop ideas for the new term, Cellucci's first full one. He was elected in his own right last week after stepping in for then-Gov. William F. Weld '66 in 1997.

Feldstein specializes in public economics, social insurance and taxes. He is currently doing research on the effects of inflation and taxation.

Also the President of the National Bureau of Economic Research (NBER), Feldstein is an advocate of lower taxes, which he believes will stimulate growth and lead to more investment in the economy.

Cellucci espoused a similar philosophy on taxation in his campaign this fall, promising to maintain the state's "red-hot economy" in his election bid against Mass. attorney general L. Scott Harshbarger '64.

This stance helped him keep the Governor's seat, despite the Bay State high concentration of liberal voters.

As Chair of the Council of Economic Advisors for former President Reagan from 1982-1984, Feldstein oversaw significant tax cuts.

The cuts stirred up controversy for their effects on the national debt and the working poor.

David M. Cutler, John L. Loeb professor of social sciences and an associate at NBER, said Feldstein is well qualified to head Cellucci's economic transition team. "Marty is an exceptional economist and person and I respect his views greatly. He has thought about economic issues facing the nation and the state as much as anybody," Cutler said.

Other transition team members include former State Finance Secretary Charles Baker, CEO of Boston Medical Center Elaine Ullian and Lowell Mayor Eileen Donoghue.

Each transition team leader will have a staff of about two dozen people who will work with them and the governor to implement their plans for the state.

Feldstein was unavailable for comment yesterday.