GOP leaders tell Kaine not to raise taxes
Ranking Virginia Republicans this week sent a letter to Gov. Timothy M. Kaine urging him not to build a budget that relies on tax increases to offset a revenue shortfall estimated to be at least $3 billion.
Kaine recently has acknowledged that the final spending plan he submits on Dec. 18 may include new revenue sources.
A repeal of the so-called dealer discount, a long standing policy that allows Virginia merchants to keep a sliver of the sales taxes they collect, and witholding the $950 million car tax subsidy the state sends to localities are mong the possibilities the governor is considering.
Several Republicans including Gov.-elect Bob McDonnell, who is not a signatory on the letter, have said they oppose new taxes to balance the budget and highly doubt that the General Assembly would approve a repeal of the car tax.
Earlier this year, lawmakers rejected Kaine proposals to eliminate the dealer discount and double the cigarette tax to help balance the budget.
The full text of the letter is below.
December 10, 2009
The Honorable Timothy M. Kaine Patrick Henry Building, 3rd Floor 1111 East Broad Street Richmond, Virginia 23219
Dear Governor Kaine:
As you complete your work on the 2010-2012 budget for introduction on December 18, we recognize you undoubtedly face many difficult decisions in balancing the Commonwealth’s budget.
No Governor or General Assembly wantonly enjoys making difficult choices to cut spending or to end non-performing government programs providing services to the people of Virginia. Yet, the fact remains that we, as elected officials, have an obligation to the taxpayer to live within our existing revenue constraints. This is no different than what taxpayers, families and businesses must do every day in their own lives.
This past August, in your remarks to the Joint Money Committees, you stressed up front the fact that unlike many other states, Virginia did not increase the “tax burden on our citizens and businesses.” We applaud the fact that you recognized then that a tax increase would be an additional burden on Virginians who already are getting squeezed on many fronts.
Over the last several weeks, published reports indicate that a tax increase remains on the table as part of your soon-to-be-released budgetary package on December 18. Today, we write to strongly encourage you to maintain the course of balancing Virginia’s budget without a tax increase.
The incoming administration has set forth very clearly that they will not support a tax increase, a position that was strongly affirmed by the voters throughout Virginia in November. Likewise, members of the House of Delegates, while running for election this year, did not advocate a tax increase. Accordingly, we believe it would be counterproductive at the very least if your final proposed budget included any increase in existing taxes, proposals of new taxes or reductions to major tax relief programs.
With Virginians already uneasy about their employment status and personal finances, they clearly have withdrawn from making major non-discretionary purchases, as evident from monthly state tax collections. So, it seems unfathomable to us that government might now extract from them involuntarily additional tax revenue that they seemingly are unable to pay voluntarily.
As witnessed in the past, injecting an unworkable and economically harmful tax increase into the state spending blueprint would serve only to delay the inevitable. It would put at risk the many positive steps we have advanced together over your term in office. Embedding tax increases within the state budget also would do a huge disservice to those of us who will continue serving the Commonwealth in the upcoming session.
Virginia has a proud and long-standing tradition for fiscal prudence and sound budget practices. It is a legacy we intend to protect in the legislature. And, it is a legacy we sincerely hope you will join us in respecting and safeguarding in your final days in office.
Sincerely,
William T. Bolling, Lt. Governor and President of the Senate of Virginia William J. Howell, Speaker of the Virginia House of Delegates Lacey E. Putney, Chairman of the House Appropriations ("budget writing") Committee Thomas K. Norment, Jr, Senate Minority Leader. William C. Wampler, Jr., Ranking Republican on the Senate Finance ("budget writing") Committee
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The Nature of Greed
When I was a kid I had a paper route in a poor neighborhood. Almost all of my customers tipped me and the tips almost doubled my $7 dollar a week profit. Eventually the Virginian Pilot manager got me a route in a rich neighborhood and I never saw another tip again.
McDonnell and his constituency are all about greed. Nothing new, it been going on for centuries.
Promises Made
Oh the irony of this appeal. Perhaps these august legislators forget that it was their leader, Jim Gilmore, who ignored the pleas of Legislators of both parties, to push through the Car tax debacle and not include some plan to deal with the ever growing debt it created for the Commonwealth. Finally, over his continued objection, the Legislature put a cap on the obligation, but the payment for the amount under the cap is still a promise to local government, yet these guys don't have the guts or the courage to own up to the fiscal impact of their own legislation. I hope Governor Kaine does his level best to do what he would have done could he have served another term in office. It is about time that the majority in the House face the effects of a decade of sheer neglect of the transportation system and the impact that will have on future budgets. They have their work cut out for themselves, especially given the promises they have made.
Quote: "With Virginians
Quote: "With Virginians already uneasy about their employment status and personal finances, they clearly have withdrawn from making major non-discretionary purchases, as evident from monthly state tax collections."
The roadways are full of brand new premium class SUVs and "S" class Mercedes and BMWs and Lexi (plural of Lexus?) and most (in Virginia Beach) have Inlet Fitness decals on them and these people cannot afford to pay taxes? Yes, the poverty is depressing in Great Neck and LIttle Neck and the North End and Croatan.
My neighbors ain’t poor but during the campaign almost all of them owned… A McDonnell sign for their front yard! Curious, I went into several lower middle class areas and not a McDonnell sign in sight. Hmm…