Triple Wammie!
The General Assembly passed a $1.36 Billion state tax hike!
Virginia Beach City Council voted on a Property Tax Hike!
(Recall that the State Statute had automatically reduced the Property Tax Rate to $1.10 per $100.)
Gas Pump Prices are going up through the roof.
Listen:
A Legislator reported last Wednesday that he has received hardly any calls on the proposed state tax increase issue.
That's right, folks! To do nothing or remain silent (not calling your legislators) is to send your message of
concurrence. In this case, your silence meant that you supported tax increases.
And that is what the Governor and General Assembly did.
QUESTION: How are you going to pay the Higher Taxes?
Personally, I just don't understand. How much financial pain does a person have to experience before initiating any
action to call the legislators?
Are we that affluent? If so, give more to the church, not to government growth!
Read below the "real issue" (false premises, promises and politics).
Everything you need to know is on this page to call your legislators.
YOUR TAXES:
Why are State Legislators Considering Raising Taxes and Calling it Tax Reform?
April 7th Status:
E-MAIL ALERT From the Family Foundation of Virginia
Legislators who voted to pass HB 5018 out of the Finance Committee:
Parrish, Orrock, Johnson, Melvin, Van Yahres, Hull, Watts, Hall, Shannon,
Lewis
If HB 5018 becomes law, what's the total damage to taxpayers?
Is there anything positive for families?
*** The end result of this bill will be approximately $1 billion in new
taxes.
After the meeting of the House Finance Committee, the full House met and a
statement was read from Governor Warner regarding the legislation. The
Governor's statement described the bill as "a major breakthrough" that will
"lead to a compromise."
The full House floor vote has been put off until Monday when legislators
will have had a few days to consider their actions. During this time, they
need to hear from citizens.
If you have not already acted, now is the right time to enter the dialogue.
Please act today! ... Call all of the Legislators shown below:
The four (4) Legislators who walk out and chose not to vote on HB 5018 Tax Increase:
House Members Who May Be Considering Tax Increase:
Summary: Key points of House Bill 5018 (Parrish):
INCREASES
TAX RELIEF
PROJECTED NET REVENUE: $972 million for the two-year budget period.
Call the Legislators today and tomorrow.
House Follows Lead of Senators O'Brien & Cuccinelli
Email your legislator at http://legis.state.va.us/.
Sincerely,
This article appeared in the Wall Street Journal (Feb 19, 2004) and it will make you mad. So sit down to read what follows.
Virginia Tax Reel
Governor Warner has his own national ambitions and would love to be Mr. Kerry's running mate. If he can bamboozle
Republicans into passing a tax hike on the cusp of an economic recovery, he'll have earned the honor.
If you live in the Hampton Roads area, please
Click Here for specific info on contacting your legislators.
Click Here for more information on legislators desiring to raise our taxes when
In Simpler Terms . . .
Since Governor Mark Warner took office, state spending has increased by $2.5 Billion.
Consider the following proposals for increased spending by Republicans: (Statewide total is $3 Billion in Republican
budget amendments)
Republican majorities in the General Assembly have failed to make good on promises to keep government small and reduce
government spending.
Our Legislators have an obligation to support the citizens of this Commonwealth. Voters sent a message loud and clear that
they desired no increases in taxes in the last election referendum. Then, why the arrogance of our legislators?
Today, People are in Trouble: People are saving less because more and more of their wages are to pay for federal,
state and social security taxes. For most Americans, over 30 percent of their wages go to taxes. Both sponses have to work
to make ends meet. Citizens need to call their legislators now and demand a stop to any increase in government spending.
If citizens continue to remain silent and not call their legislators, the business groups and State Senators will nurture
a growing support for state tax increase. Call Now!
Virginia Republican Creed: . . > >
Link To Virginia State Republican Party
Legislators aren't asking the right questions about Gov. Mark Warner's proposal to raise taxes by $1 billion.
Citizen Actions:
Please contact your senators and delegates (especially the Republicans) and tell them no new taxes.
If you don't know who your state representative is,
To Quickly Express Your Opinion:
To speak directly to your representative or their aide, call as follows:
Senators
E-Mail Listing
Postal Mail
Resolution of the First District Republican Committee
Whereas, we believe the Republican Party of Virginia Creed clearly states our common values;
Be it resolved, that we the leaders of the Republican Party in the 1st Congressional District, publicly express our
disappointment and firm opposition to Governor Warner's and Senator Chichester's tax increase proposals;
VIRGINIA REPUBLICAN TAX RESOLUTION
Now, therefore, be it Resolved, that the James City County Republican Committee
WARNING: After the November 4, 2003 Election, Republicans will renegade on their "No Tax Hike" pledge to pursue
legislation during the upcoming 2004 General Assembly to increase taxes for more revenue.
If citizens remain silent, so will the candidates! Citizens must demand tax reform!
Citizens must demand tax reform to update a code that has not changed over 20 years. The code is outdated and full of
inequities.
1. The State cannot complete the car tax because of increased government spending in the middle of the present flat economy.
Currently, 75% of the state general fund budget provides funding for education, Medicaid and public safety. The remaining
25% provides funding for the court system to environmental related items to economic development.
The REAL Issue:
WARNING: Our Legislators are silent on Tax Code Reform -- the calmness in the eye of the storm to increase taxes.
CITIZEN ACTIONS:
Fiscal responsibility includes cutting taxes.
Today's citizens are over-taxed!
The State Tax Code needs to be re-structured to include implementation of new taxes in the following areas:
The Tax Code needs to be re-structured to make the Code more reflective of today's economy.
Eliminate the car tax and food tax. Cars and food are essential products for today's living.
Policy Commentary
. .
The Bipartisan Plot to Raise Your Taxes After the Election
Elections are supposed to enable the voters to decide what policies they want the government to adopt. But when politicians
dishonestly hide or even deny during the election the policies they plan to adopt afterwards, the democratic process is
nullified. Voters then effectively have no say in how they are governed. This charade is now going on in Virginia this year.
At the center of the plot is Gov. Mark Warner, who openly blabbed about the scam recently to the Washington Post.As reported
in the Post on February 25, Warner plans to propose a “tax reform” plan in Virginia next year involving a major tax increase.
Virginia needs more taxes to increase government spending more, Warner believes.But how will he get the tax increase past
the Republican majorities that now prevail in the state legislature? Warner told the Post that some moderate Republicans
“facing primary challenges this summer have assured him privately that they will be his allies in the tax restructuring
effort.” Warner didn’t actually name these stealth tax increase Republicans. But it is clear as a bell who they are.
Peter Ferrara is President of the Virginia Club for Growth and Director of the International Center for Law and
Economics in Fairfax, VA.
If the Assembly deadlocks, Mark Warner might call a special session. But he will bear some of the blame. The Governor
insistently withheld his tax plan from the voters all Fall, so it would receive no discussion during the Assembly elections.
Earlier disclosure, and debate on its merits and demerits, likely would have clarified certain issues for those legislators
in the muddled middle.
Such tactics - along with Warner's breach of his no-new-taxes pledge - contribute to voter distrust, and such distrust may
have been a fundamental factor in the defeat of the Governor's transportation tax referendums in Northern Virginia and
Hampton Roads.
For now the Assembly must discard the notion of "reform" - revenue-neutral fairness, code simplification, etc. Leave that
for a later time. Set out to match expenditures to revenues over the long term.
In the tax-hike debate,
There have been failed Virginia efforts at a state constitutional amendment limiting future spending growth to a factor of
inflation and population growth, and Congress broke Virginia Senator Harry F. Byrd, Jr.'s balanced-budget statute
(the Byrd amendment) as though it were a toothpick shortly after its enactment in the late 1970s. But neither the state
nor the federal government can continue to increase the rate of growth forever. And at least at the state level the
logical limit on the size of government is the size of the economy: Government cannot consume more than 100 percent of the
wealth created - though it appears at least some would like to give it a try.
It's a new "Tax & Spend" philosophy being undertaken by our Legislators.
Governor Mark Warner (Democrat) has submitted the largest tax increase in the history of Virginia. Many Legislators
including senior Republicans are supporting a tax increase.
PLEASE call today Senator Ken Stolle (Republican) to stop state tax increases (he supports the Governor's
tax plan).
Call Sen. Stolle at his VaBeach office: 486-5700 or during the week in Richmond: (804) 698-7508
House Finance Committee voted 10-8-4 on House Bill 5018 (Parrish) to INCREASE sales taxes by 11%.
Without debate, the tax-writing House Finance Committee voted to increase the state sales taxes by one-half cent and
that would generate nearly $1 billion in new revenue. The bill also increases taxes on cigarettes and recording real
estate deeds. The bill now goes to the full House of Delegates which has recessed until next Monday for Easter.
Senators found the move encouraging, but still had reservations. "I hate to mix income tax cuts with
sales tax increases, and that's what this does," said Sen. John Watkins, R-Powhatan.
Date: Wednesday, April 7, 2004
From: Victoria Cobb, Director of Legislative Affairs
Yesterday, a majority of the House Finance Committee temporally defeated a
large tax increase bill HB 5018, created by moderate Republican delegates in
an effort to break the budget "impasse."
Today, the same committee voted to pass HB 5018.
The difference between yesterday's action and today's was a
decision made by four members to walk away from the vote on HB 5018. The
final vote was 10-8-4.
Legislators who voted to defeat HB 5018 in the Finance Committee:
Purkey, Drake, Lee Ware, Welch, Nixon, Byron, Lingamfelter, Hugo
Legislators who walked out and chose not to vote: Louderback, Cole, O'Bannon, Janis
HB 5018 includes an 11% sales tax increase (an additional 1/2 cent per every dollar); a 22.5 cents cigarette tax
increase per pack in 2004, then it increases to 27.5 cents per pack in 2005; and a 66.7% recordation tax increase
(an additional 10 cents per dollar).
An oft overlooked portion of the bill is that incorporated in this measure is a massive change to the age deduction.
The soon-to-be elderly would begin to be means tested before receiving their age deduction. Anyone over 65
presently would not see a change but those not yet 65 will have their income determine their eligibility for this
deduction.
This bill also eliminates the sales tax exemptions for certain business and public service
corporations.
This tax hike results in $1.4 billion in new taxes paid by citizens.
To be fair and balanced in the description of the bill, HB 5018 does also include the reform promises made by the
General Assembly for the past several years. It will reduce the food tax 50% (a 1/2 cent per every dollar less in 2004,
then it reduces another 1/2 cent per dollar in 2005);
remove the marriage penalty by increasing the standard deduction for married
individuals from $5000 to $6000; increase personal exemptions from $800 to
$1000 and repeal the estate tax. While citizens have been waiting for the
fulfillment of these pledges by legislators, the $420 million in savings
will now pale when considered in the context of the total cost to taxpayers.
He also noted that it encompassed nearly all of the goals he set out in the beginning of the budget process.
Despite the fact that the revenue generated from HB 5018 is nearly identical to the
Governor's plan, he has not agreed to endorse it as of yet. News reports
have noted that some members of the House broke protocol and undercut the
budget negotiations between conferees by speaking with various senators in
an effort to work out a compromise.
If you have already sent legislators a message, now is the time to resend.
Apparently, our General Assembly is a bit hard of hearing when it comes to tax increases.
Citizens in Northern Virginia rejected a sales tax increases by a vote of 55%-45% and the voters in the
Hampton Roads area likewise voted against the increase 65%-35%.
Delegate Name . . . District . . . Party . . Email Address
Capitol Phone . . . District Phone
Cole, Mark L. . . . 88th . . . R . . . mailto:Del_Cole@house.state.va.us
. . . (804) 698-1088 . . (540) 752-8200
Janis, William R. . . . 56th . . . R . . . mailto:Del_Janis@house.state.va.us
. . . (804) 698-1056 . . . (804) 301-7489
Louderback, Allen L. . . . 15th . . . R . . .
mailto:Del_Louderback@house.state.va.us
. . . (804) 698-1015 . . . (540) 743-7644
O'Bannon, John M., III . . . 73rd . . . R . . . mailto:Del_OBannon@house.state.va.us
. . . (804) 698-1073 . . . (804) 282-8640
Hamilton, Phillip A. . . . 93rd . . . R . . .
mailto:Del_Hamilton@house.state.va.us
. . . (804) 698-1093 . . . (757) 249-2580
Callahan, Vincent . . . 34th . . . R . . . mailto:Del_Callahan@house.state.va.us
. . . (804) 698-1034 . . . (703) 356-1925
Bryant, L. Preston . . . 23rd . . . R . . . mailto:Del_Bryant@house.state.va.us
. . . (804) 698-1023 . . . (434) 528-1097
Carrico, Charles . . . 5th . . . R . . . mailto:Del_Carrico@house.state.va.us
. . . (804) 698-1005 . . . (276) 773-9600
Dillard, James H., II . . . 41st . . . R . . . mailto:Del_Dillard@house.state.va.us
. . . (804) 698-1041 . . . (703) 323-9556
Dudley, Allen W. 9th R mailto:Del_Dudley@house.state.va.us
. . . (804) 698-1009 . . . (540) 489-8989
Fralin, William H., Jr. 17th R mailto:Del_Fralin@house.state.va.us
. . . (804) 698-1017 (540) 722-7600
Hurt, Robert 16th R mailto:Del_Hurt@house.state.va.us
. . . (804) 698-1016 (434) 432-4600
Ingram, Riley E. 62nd R mailto:Del_Ingram@house.state.va.us
. . . (804) 698-1062 (804) 458-9873
Jones, S. Chris 76th R mailto:Del_CJones@house.state.va.us
. . . (804) 698-1076 (757) 483-6242
Marshall, Daniel 14th R
mailto:Del_DMarshall@house.state.va.us
. . . (804) 698-1014 (434) 797-5861
Morgan, Harvey 98th R mailto:Del_Morgan@house.state.va.us
. . . (804) 698-1098 . . . (804) 693-4750
Nutter, David A. 7th R mailto:Del_Nutter@house.state.va.us
. . . (804) 698-1007 . . . (540) 382-7731
Oder, G. Glenn . . . 94th . . . R . . . mailto:Del_Oder@house.state.va.us
. . . (804) 698-1094 . . . (757) 930-8683
Orrock, Robert . . . 54th . . . R . . . mailto:Del_Orrock@house.state.va.us
. . . (804) 698-1054 . . . (540) 891-1322
Parrish, Harry . . . 50th . . . R . . . mailto:Del_Parrish@house.state.va.us
. . . (804) 698-1050 . . . (703) 367-0505
Rust, Thomas 86th R mailto:Del_TRust@house.state.va.us
. . . (804) 698-1086 . . . (703) 437-9400
Tata, Robert . . . 85th . . . R . . . mailto:Del_Tata@house.state.va.us
. . . (804) 698-1085 . . . (757) 340-3510
— Sales tax by one-half cent, from 4.5 cents on the dollar to a nickel.
— Closes several corporate income tax loopholes.
— Tax on recording real estate deeds increases from 15 cents to 25 cents per $100.
— Cigarette tax jumps from 2.5 cents, the nation's lowest, to 25 cents this year and to 30 cents next year.
— Eliminates the sales tax exemptions for certain public service corporations.
Gross Tax Increases come to $1.4 billion.
—The state tax levied posthumously on the estates of multimillionaires is eliminated Nov. 1.
—The sales tax on food is reduced by 1 cent, to 3 percent, by July of 2005.
—Eliminates accelerated sales tax payments for businesses, enacted as a stopgap revenue enhancement measure in 2002.
—Personal exemption on income taxes rises from $800 to $1,000 effective 2005.
—Income tax standard deduction for married couples from $5,000 to $6,000 effective 2005.
—Raises income tax filing threshold from $5,000 to $7,000 for individuals; from $8,000 to $14,000 for married couples effective 2005.
—Retains income tax senior deduction for taxpayers already 65 and older and a lesser deduction for those already 62 to 64 effective with current tax year. People who become eligible for the age deductions after the bill takes effect would be subject to an economic means test to determine whether they retain the deduction.
Total tax relief comes to slightly more than $400 million.
Source: Legislative Information System > > >
Read Bill Online
March 30th Status: The standoff is between the General Assembly House (Delegates) and the Senate. The Senate
basically supports the big tax increase proposed by Governor Mark Warner. His tax increase would be the largest
in the history of Virginia.
1. The Delegates are holding firm to closing the tax loopholes for corporate businesses while the Senators desire
privileged loopholes for certain corporations so they don't have to pay state sales taxes.
2. The Delegates identified continued increasing government spending as a problem. The Senators desire to ignore this.
3. The Delegates desire no tax increase and to constrain government spending. The Senators desire to ignore this and
increase taxes across the board, including significant increases in state income and sales taxes. For a family of four,
the increase would be $1,000 more a year.
4. The Senate tactic is to de-sensitize the citizens on their proposed tax increase so that the compromise is the
Governor's tax plan. The Governor's tax plan increases taxes to over $1 Billion. Still too much tax increase.
5. The Delegates are holding the line and they need your calls of assurance that they are undertaking the right
course of action.
SENATE NEWS
Yesterday, the House of Delegates passed a one-year budget in an attempt to avoid a government shutdown. Smart.
The House's interim budget holds the line on taxes and leaves all of the tax increases up for debate, but without the
threat of a government shutdown. As I said last week, no one wants a government shutdown, but the pro-taxers are using
the threat of getting to June 30th without a new budget to try and force Virginia to accept their tax increases.
Put another way, the pro-tax Senators and the Governor are holding the budget hostage and threatening a government
shutdown in order to force their tax increases to be adopted.
If the State Government is forced to shut down in 3 months, it will be because the pro-taxers were unwilling to even adopt
a stop-gap measure.
Right now, SB 5004 is sitting in the Senate Finance Committee, waiting for committee action.
Hopefully they will not wait until June to take action, as our local governments need to know what they're getting to
plan their own budgets.
Common Misconception
The Senate tax and budget proposals do many things that I am not happy with, but one of them is NOT touching social
security.
I have begun to hear concerns about social security being taxed in the Senate budget. This is not correct. The Senate
budget taxes an awful lot, but it does not tax social security. Social security will continue to be treated the same
under all of the current budget proposals.
As there is more to report, I will let you know, but things are moving incredibly slowly right now.
Please keep up your efforts to lobby the legislature!
Tell them to support the referendum solution and an interim budget (SB 5004)!
Senator Ken Cuccinelli
Please Visit our anti-tax website at:
http://www.NoTaxHike.net
But, this was predicted back in March 2003 by Peter Ferrara and we were warned by
Pat McSweeney
There's an effort under way in the Commonwealth of Virginia to raise taxes to record levels, and our guess is that John
Kerry is paying close attention to how it plays out.
It's bad enough that Democratic Governor Mark Warner is trying to raise taxes by more than $1 billion. What's worse is that
a Republican (GOP) controlled legislature that rose to power on an anti-tax agenda now wants to raise them even
higher. If Republican Senate Finance Committee Chairman John Chichester and Senior Senator Ken Stolle get
their way, Virginians are looking at $4 billion in new taxes over the next two years.
Governor Warner was elected in 2001 on a promise not to raise taxes, but this is
his third attempt since taking office to do just that. Like voters in Oregon and Alabama, Virginians recently
shot down two referendums calling for tax hikes.
The problem is that Virginia's political class won't take no for an answer. They've tried targeting
taxes specifically for roads, and other popular things, but that didn't work. They've also tried playing the class card by
claiming to raise taxes only on "the rich," but that hasn't flown either.
Mr. Warner's political innovation has been to package his latest tax increase attempt under the rubric of tax "reform."
He wants voters to believe that they won't be paying more, some other saps will pay instead. If the Democratic Governor of
a Southern state can get a GOP legislature to bite on this ruse, look for Senator Kerry and national Democrats to try the
same line later this year.
Virginia voters have opposed tax increases so often because they realize that the real problem is
spending.
Mr. Warner has proposed a $59 billion two-year budget that includes $2.4 billion in new spending over the current two-year
budget. Averaged out annually, state spending is up a record $6 billion, or 30%, in the past five years and $2.5 billion
since Mr. Warner took office in 2002. Those increases outpace inflation, population growth and any rise in average
personal incomes. All of this has been blessed by a GOP legislature -- which ought to be a warning to Republicans in
Congress about their own spending spree.
Nevertheless, the state senate finance committee has just approved bills that raise taxes on, among other things, sales,
tobacco, gasoline, businesses, deeds, car titles and vehicle registrations. Levies on taxable incomes over $100,000 would
increase to 6.25% from 5.75%, and tax breaks for the elderly would be eliminated. If there's a difference between
this tax "reform" and traditional tax-and-spend governance, we're at a loss to tell you what it is.
Governor Warner is fortunate that Virginia's constitution doesn't provide for a recall and that he's limited to a
single term in office.
Supporters claim higher taxes are needed to preserve "essential services," but don't believe it. Virginia's economy, like
the nation's, is on the mend, and state revenue is growing faster than expected. Mr. Warner and his GOP allies are trying
to sneak this tax increase into law quickly, before revenues balance the budget without it and they lose their opportunity
to establish a permanently larger revenue stream.
Peter Ferrara of the Virginia Club for Growth, a fiscal watchdog group, notes that even without the proposed tax hikes the
state could increase spending annually by 5.5% over the next two years. He also predicts that current revenue trends would
bring in twice as much money as Mr. Warner's tax increases. "We should be talking about tax cuts, not tax increases," says
Mr. Ferrara.
Please note that Peter Ferrara also spoke on this issue at the Virginia Beach CCO meeting on February 11, 2004.
Click Here For Details
the average family wages are already stretched thin: www.notaxhike.net
What is costing so much more in Virginia government that warrants increasing taxes?
The cost of government? Maybe, or is there an out-of-control spending crisis. Or, is our legislators unwilling to
prioritize government services due to pork? Read on.
Consider the following facts?
From 1997 to 2002,
Virginia's per-capita budget spending grew by 56 percent.
Virginia's revenue increased by 37 percent.
Virginia's budget has risen at more than twice the rate of our population increase, allowing for inflation. In the 1990s,
the per-capita general fund expenditures increased by 91 percent while personal income in Virginia grew only 27 percent.
Virginia's budget (expenses) has increased by 8% (avg. per yr.) whereas its revenue has averaged only 5%.
Individual's income has averaged only 4% increase per yr.?
We can't continue this way. It's time for our Representatives to take a stand against any tax increase.
Although Gov. Warner has repeatedly said he has cut government, the record shows he has increased state spending.
Although Gov. Warner announced a budget cut of $6 billion, state spending in fiscal year 2004 will come in at $26 billion,
that is, $2.5 billion more than two years ago.
The Facts Speak For Themselves.
Now, Gov. Warner has submitted a proposed tax increase totaling over $1 billion dollars for the next budget, even though
his campaign pledge was and he promised not to raise Virginia taxes.
Gov. Warner has proposed the largest tax increase in the history of Virginia.
Come now, who has been nipping on the (hard) cider?
Residents must call today Senator Ken Stolle (R) to stop any state tax increase as he supports the Governor's
tax plan.
Call Sen. Stolle at his VaBeach office: 486-5700 or during the week in Richmond: (804) 698-7508
Delegate Bob McDonnell proposed $12 Million for prison expansions, tourism promotion and new circuit court judges.
Delegate Thelma Drake proposed $9 Million for public defenders offices statewide.
Delegate Leo Wardrup proposed $31 Million in added spending.
Senator John Chichester, R-Stafford, chairman of the Senate Finance Committee and chief Republican budget writer in the
Senate, proposed raising taxes $2.5 billion a year. Senator Ken Stolle is co-sponsor for this proposed tax increase that
is more than what the Governor proposed.
The Consequences will be that if Republicans don't hold the line on spending, they in effect will be giving the upper
hand to Governor Warner.
Sen. Chichester's plan does just that. Citizens must call their Legislators now.
We Believe . . .
That the free enterprise system is the most productive supplier of human needs and economic justice
That all individuals are entitled to equal rights, justice, and opportunities and should assume their responsibilities
as citizens in a free society
That fiscal responsibility and budgetary restraints must be exercised at all levels of government
That the Federal Government must preserve individual liberty by observing constitutional limitations
That peace is best preserved through a strong national defense
That faith in God, as recognized by our Founding Fathers, is essential to the moral fibre of the Nation
© Copyright 1975, 1997 by Republican Party of Virginia, Inc.
Officials Put Cart Before the Horse on Taxes and Spending
By Patrick M. McSweeney ... EMail: pmcsweeney@mcbump.com
January 25 2004 .... Copyright © 2004, Daily Press
Let's start with an obvious one. Why should the General Assembly raise taxes to fund a tax cut?
Thus far, Warner hasn't given a reason good enough to justify paying bureaucrats to collect the taxes only to send the
money out again as car tax reimbursements.
Another question is whether there is room for additional cuts in state spending to avoid raising taxes by $1 billion. A
year ago, Warner claimed that he could reduce spending by $1 billion a year by implementing most of the recommendations of
his Commission on Efficiency and Effectiveness chaired by former Gov. L. Douglas Wilder. What happened to that claim?
Yet another question is whether the program requests Warner points to as justification for a $1 billion tax hike can be
satisfied just as well through a more cost effective approach or whether those requests warrant funding at all. Virginia
taxpayers deserve a thorough analysis of these requests.
Warner's thinking is selective. He is concerned about Virginia's antiquated tax code, but has apparently given no thought
to Virginia's antiquated programs. That's putting the cart before the horse.
Let's look at concrete examples. First, should Virginia blindly spend more taxpayer money on the same old
transportation programs? Is there a better way?
In 1986, then-Gov. Gerald Baliles proposed a massive tax increase for a highway solution to congestion. The new money from
that tax increase simply made the overall problem worse, rendered alternative solutions far more costly and difficult to
implement in the future, and accelerated the process of suburban sprawl that compounded the mobility problems in Virginia's
most heavily populated regions.
Why would we want to repeat that?
Surely, the General Assembly should consider some bold transportation alternatives.
The present transportation system is inefficient. One reason is the way it's funded through a mix of general sales tax and
various user taxes, particularly the gas tax. Although dubbed a "user tax," the gas tax has not produced an efficient
transportation system. Only charges directly associated with a particular trip will achieve that objective. The only way to
make transportation more efficient is to introduce the discipline of the marketplace, which involves private investment
risk and consumer choice. If Virginia chooses that route, the requirement for public funding will be dramatically reduced.
Another program area due to get hundreds of millions of dollars from the Warner tax hike is public education. Spending
in this area has been growing at a rate ten times greater than enrollment increases. How was that money spent and what were
the results?
Last Aug. 31, the Daily Press published a survey of 13 school divisions which concluded that higher pay for teachers and
administrators has little effect on student achievement. Yet, Warner, school administrators and teachers' unions simply
assume that higher pay means better instruction. As previously argued in this space, all of the assumptions underlying the
state's Standards of Quality for public schools should be challenged, not accepted on faith.
The same is true in Medicaid and higher education. What assumptions drive Medicaid spending increases? How much of the
anticipated growth in college enrollment has already been addressed through the $900 million bond financing authorized by
voters in 2002?
There is no justification for the current clamor over which taxes to raise when the case for a spending increase hasn't
even been made.
Pat McSweeney, who practices law in Richmond, is former Chairman of the Republican Party of Virginia.
If you need information or talking points on why we shouldn't raise taxes,
Senator Ken Cuccinelli has an excellent web site at: www.notaxhike.net > > > . . .
Link
When you log on, be sure to electronically sign the "no tax hike" petition at his site.
A tax overhaul that is truly "revenue neutral" is certainly acceptable. However, be careful.
When they try to raise one tax while giving us a 100% car tax cut, don't buy it. The car tax cut is
already enacted and is just waiting for state revenues to increase to kick in.
Any new taxes need to be countered by a NEW cut in another tax. We have to hold the line if our party
is going to have any principles let to stand on at all.
Please contact your legislators ASAP and let them know of your concerns.
log onto the State Board of Elections website at http://www.sbe.state.va.us > > >
Link
And Click on "where do I vote."
Fill in your address and your voting location, and it will give you your state senate, delegate and
congressional district.
Or, quickly: http://conview.state.va.us/whosmy/constinput.asp > > > . . .
Link
The General Assembly has a toll-free opinion phone lines if you just want to express your opinion
and have it forwarded to your senator and delegate.
Call 1-800-889-0229 (outside of Richmond).
If in Richmond, call 698-1990 for the General Assembly Constituent Viewpoint operator.
Remember that the operators are trained to identify a caller's legislator by his or hers home address.
(NOTE: If you live in the Hampton Roads area, please
Click Here for specific info on contacting your legislators)
(804) 698-75XX, where the XX is the Senate District.
Example - Senator Marty Williams is in the 1st Senatorial District. His number is (804) 698-7501.
To email your senator, send to districtXX@sov.state.va.us
Again, XX is the Senatorial District. Senator Williams would be
district01@sov.state.va.us (please note that there is no period after us on the end).
Delegates
(804) 698-10XX. Example - Delegate Tom Gear is in the 91st House District. His number is (804) 698-1091.
To email your delegate, send to del_lastname@house.state.va.us (an underscore (_) goes between the "del" and
the "lastname").
Tom Gear's email address is del_gear@house.state.va.us (again, no period after us).
House of Delegates Email List: http://dela.state.va.us/dela/MemBios.nsf/MWebsiteEL?OpenView . . > >
Link
Senate of Virginia Email List: http://sov.state.va.us/SenatorDB.nsf/$$Viewtemplate%2Bfor%2BWEmailList?
OpenForm . . > >
Link
Senators: Address the envelope to: The Honorable XXX, Senate of Virginia, P.O. Box 396,
Richmond, VA 23219.
Delegates in the House: Address the envelope to: The Honorable XXX, House of Delegates, P.O. Box 406,
Richmond, Virginia 23218
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RESOLUTION
Adopted 23 January, 2004
Whereas, we believe Republican candidates are nominated and elected with full fidelity to the Republican Creed to keep
limited government and the lowest taxes:
Whereas, we believe that Virginia families and businesses are already overtaxed at the local, state and federal level;
Whereas, we believe that that the Commonwealth of Virginia doesn't have a revenue problem, but it has a massive
spending and spending prioritization problem;
Whereas elected Republicans who sponsor tax increases break their bond of honor to the Creed they pledged to support,
the Party who nominated them, and the Good People of Virginia who elected them;
Whereas, the General Assembly added a whopping $5 billion more this biennium in spending without raising taxes;
And whereas, Republican State Senator John Chichester promised the voters in the 28th District Primary repeatedly -
both in word and in print - that he was opposed to raising their taxes;
And whereas Senator Chichester told Primary voters his position on taxes was to "hold the line on taxes during tough
economic times and then provide additional tax relief when times are good."
And whereas Sen. Chichester claimed to Primary voters he was a "Leader in the fight for lower taxes."
And whereas Sen. Chichester also told Primary voters "…you can always count on me to support our shared Republican
principles of smaller government, [and] lower taxes, "
And whereas Sen. Chichester told the Richmond Times Dispatch on May 9, 2003 "I'm certainly not going to favor raising
taxes."
And whereas the state's revenue and economic situations have only improved since May 2003;
And whereas Senator Chichester proposes a $2.6 billion increase in taxes;
And whereas any tax increase passed by the General Assembly could cost our Party seats in the House and Senate, and
possibly even our Majorities;
And resolved that we request Senator Chichester explain how he can propose such high tax increases after such a
clearly-advertised anti-tax position to the voters in the June election;
And be it further resolved that if Senator Chichester continues his support for such massive tax increases on all
Virginians, that we regretfully request he switch his affiliation to a more suitable political party for such an agenda.
(as passed by the James City County Republican Committee, adopted Jan. 28th)
Expressing solidarity in the fight against increased taxation.
Whereas, since Mark Warner entered office government spending has not been cut;
Whereas, government spending has actually increased by $2.5 billion, to the highest level in Virginia history;
Whereas, Governor Warner’s proposed budget is over 13% larger than the budget that Virginia is currently operating under;
Whereas, government spending is growing by 8% a year, while family income is growing by only 4%;
Whereas, during the first 5 months of the current fiscal year economic growth averaged 7% and if continued will produce
more than $2 billion in new revenue in the upcoming biennium, without a tax increase;
Whereas, Virginia voters overwhelmingly voted no to a proposed tax increase in November of 2002,
(1) stands in solidarity with Virginia Republicans across the Commonwealth in adherence to our own Virginia creed that
states, “We believe that fiscal and budgetary restraints must be exercised at all levels of government”;
(2) remains committed to the philosophy of lower taxes and less government;
(3) opposes the Warner and Chichester tax plans;
(4) urges all Republican legislators to heed the voices of grass root Republicans, who believed their campaign promises
of commitments to lower taxes, even as recently as the spring primaries and worked to elect them;
(5) will remember those legislators who kept their promises and whose votes reflect their commitment to Republican
ideals in the next election.
CALL YOUR LEGISLATOR TODAY
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WHY THE SILENCE AMONG STATE CANDIDATES TO DISCUSS THE UPDATING OF THE STATE TAX CODE?
Read Here Governor's Tax Reform Plan Raises Taxes
If citizens remain silent, there will be tax increases after the November 4th election!
If you ask why? Consider the following:
2. The transportation system is losing ground and the local municipalities, such as Virginia Beach, are picking up
the tab on road construction and upgrades, because monies allocated to transportation has been pulled by the Governor to pay
for government operations.
There is no political will to continue streamlining the state government, especially the 10,000 plus employees in VDOT.
There is no political will to cut taxes when industry and businesses are pouring monies into campaigns of incumbents.
The citizens are again being duped!
Since there is no political will to cut taxes, the Governor will submit a package to increase taxes for additional
revenue to support increased government spending and other "pork" related projects.
Call your legislator and ask for their position on Tax Code Reform or increased government spending.
Call your legislator and ask for their position on cutting taxes.
Then, vote your conscience.
The Legal Business - they pay no taxes. Keep in mind there are many lawyers who serve as legislators
in the General Assembly and are very protective of taxing their businesses. It is time that citizens turn the tables on the
legal businesses.
The vehicle repair business - they pay no taxes on the actual repair service. Customers pay taxes on the repair parts only.
CALL YOUR LEGISLATOR TODAY
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A publication of the Virginia Club for Growth
http://www.virginiaclubforgrowth.org
.
President
Virginia Club for Growth
Senators Russ Potts (R-27), John Chichester (R-28), and Tommy Norment (R-3), all serve on the Senate Finance Committee,
with Chichester serving as Chairman. They have long been pro-tax RINOs (Republicans In Name Only), and they are all
facing stiff primary challenges this spring and summer. Potts, whose district covers the area around western Loudoun
County and Winchester, is being challenged by Middleburg Deputy Mayor and small businessman Mark Tate. Chichester, whose
district is near Fredericksburg, is being challenged by highly experienced campaign veteran Mike Rothfeld. Norment, whose
district is in the Tidewater area, is being challenged by pro-taxpayer leader Paul Jost.Potts, Chichester and Norment
openly laugh at and deride the pledge not to raise taxes now endorsed by taxpayer groups across the state. Their opponents
Tate, Rothfeld, and Jost have all eagerly sworn to abide by the pledge. Potts, Chichester and Norment all supported the
proposed double digit sales tax increases in the referenda held last fall, which were overwhelmingly rejected by the people.
Tate and Jost, who live in areas that would have been covered by the tax increases, were among the leaders fighting against
it.The challengers, Tate, Rothfeld, and Jost, all support the bill introduced by Sen. Ken Cuccinelli and Del. Dick Black
that would limit the annual growth in real estate taxes, though some of them may want an even stricter cap. Potts,
Chichester and Norment have refused to support the bill and together they effectively killed it in the Senate Finance
Committee by failing to even bring it to a vote.
So the lines are clearly drawn in these primaries. Those who want a major state tax increase next year should by all means
vote for Potts, Chichester and Norment. Those who don’t want a tax increase should vote for their challengers Tate,
Rothfeld and Jost. It’s up to the voters to decide. But I am entitled to my own opinion. And my opinion is that any
Republican primary voter would be foolish to vote for a candidate who plans to collaborate with the Democrats to enact
their high tax, big government agenda. With Potts, Chichester and Norment joining the 17 Democrat Senators, only one more
Republican sellout would be needed to pass Warner’s tax increase through the Senate. (That would eventually be Senator
Ken Stolle of Virginia Beach)
Why would a supposedly Republican primary voter vote for someone who is going to backstab the Republicans like that? As
for Warner, do not forget the campaign he ran in 2001. The central theme of that campaign was “I am not going to raise your
taxes.” Indeed, Warner ran ads ridiculing his opponent Mark Earley for even suggesting that Warner would raise taxes.
Remember those ads? They said at a time like this (it was the fall right after 9/11) we don’t need phony politicians making
false accusations about a tax increase. After that campaign, for the Governor to now propose a major tax increase would be
shameful and disgraceful. It would make a mockery out of the whole 2001 election in which Warner won his post. This type of
lying double talk is why more and more people simply drop out of the process and don’t vote at all.If Warner wants to now
propose a “tax reform” involving a major tax increase, then the only honest thing for him to do is resign and run again in
a special election openly supporting the tax increase plan. Only then will the voters be able to have their say.
CALL YOUR LEGISLATOR TODAY
A FEW THOUGHTS
With regard to the process, whatever happened to zero-based budgeting - i.e., determining an agency's funding based on the
money it needs to perform its mission rather than on the previous biennium's spending plus an increase? Efficiency would
suggest putting needs (as opposed to mere wants) first and then determining how to fund them.
(a) it would be instructive to know whether the Governor and Senator Chichester told Moody's they would see that Virginia
raises taxes, and whether Moody's took that promise as the linchpin in its post-session decision on Virginia's bond rating.
(b) It also would be instructive to know whether, alternatively, the Governor and Senator made no such promise, but want
the public - especially the "business community" - to think they did.