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In
October 2001, candidate Mark Warner promised us he
was “a
fiscal conservative. Someone who understands that
government has to live within its means. Someone
who will not raise your taxes.”
It was just pandering then – a campaign fib
to win votes. But
that fib has snowballed into a Big Lie, otherwise
known as the governor’s “tax reform” package.
And unless those of us who really are fiscal
conservatives can stop him, Warner will succeed in
killing Virginia’s economic recovery.
Yes,
an economic recovery. You may not have read much about it, and
certainly the governor has no intention of letting
folks know about it, but right now
Virginia
is on a pace to rack up
budget surpluses in excess of $40 million per
month. At
that rate of growth, Virginia
taxpayers will pour
enough money into the state’s coffers to pay for
almost every pet project and cause the Governor can
dream up. But
that’s not enough for Mark Warner.
Why? Because taxaholics like Warner and his allies
in the General Assembly can never get enough of your
money. Of
course, they always frame their needs in terms that
fit the latest focus group findings – we need
money for roads, more money for healthcare, schools
are falling down, and on and on.
Like
every other politician who wants to raise taxes,
Warner believes he has first dibs on your wallet.
It doesn’t matter that you have plans for
your hard-earned money. He has needs to fulfill, obligations to meet,
and by golly, if he can’t get more money right
now, there will be hell to pay tomorrow!
Gov.
Warner also says that unless we throw out the tax
code that has encouraged almost three decades of
unprecedented personal income growth in Virginia
(and even healthier growth in state taxes and
spending), Virginia
will lose its “coveted” triple A bond rating. Losing this bond rating, he says, "would
be a real blow to our economic competitiveness… It
would have a serious detrimental effect.”
You
bet it would -– because if Wall Street downgrades Virginia’s bonds, the state has to pay higher interest to
the bondholders -– in effect, a tax increase.
And if that happens, you can thank Mark
Warner. Remember
when candidate Mark Warner railed against one-time
fixes for the budget? Well, after he got elected he became the King
of one-time fixes. Now Virginia’s finances are not as strong as they were when
Warner was elected. His solution? More
taxes.
It
is historically undeniable that, as a group, politicians
cannot be trusted with taxpayers’ money.
Given the opportunity, they will spend it
all, and then pawn whatever they can lay their hands
on to spend even more.
That’s
why what Virginia
really
needs is not “tax reform,” but spending reform. Hard, honest, spending caps – a
Taxpayers’ Bill of Rights - would finally put Richmond’s
taxaholics on the wagon, and force them to set
priorities, and live within their means, just like
Virginia’s
families and businesses.
Eventually such institutional restraints
would even lower the overall tax burden.
Colorado’s Taxpayers’ Bill of Rights is doing just this.
State spending continues to rise – but only
as fast as the combination of the growth in
population plus inflation. Any excess revenues are refunded to taxpayers
each year. Colorado
Gov. Bill Owens has presided over some of the
most difficult economic times in his state’s
history. But
thanks to the constitutional protections in place
for Colorado’s taxpayers, state government hasn’t been
allowed to tax and spend its way out of the problem. If they want to try, they first have to get
voter approval. The result? Colorado
has one of the healthiest state economies in America.
Virginia
is well-positioned to enact just this sort of
essential taxpayer protection. Our economy is growing faster than anyone
expected. Revenues
are up more than state budgeters forecast. And even state spending is up, about
four
percent last year – even after the allegedly
“draconian” cuts of the last session.
A
Taxpayers’ Bill of Rights will ensure that
government has all the revenue it needs to meet its
obligations now and in the future. And once those needs are met, the balance
will be returned to you – the taxpayer. That’s real fairness – and it’s what
real fiscal conservatives will fight for in the
upcoming session.
When
you need more money, can you just walk into your
boss’ office and demand higher pay? Of course not. Mark Warner thinks he can, but remember,
you’re the boss – the citizens of Virginia. Do you
want to give the politicians more money?
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January 19, 2003
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