The Club for Growth

Phillip Rodokanakis



Why Not a Ticket for Tax Abuse?

A General Assembly bill would ratchet up fines for certain traffic "abuses" and earmark the revenue to highway projects. The real abusers are the politicians sponsoring this bad legislation.


 

At a time when Virginia’s Treasury is overflowing with money from a surplus estimated at $1 billion or higher, one would not expect to see many new bills calling for additional revenues and the creation of a bigger and more oppressive state government. On the contrary, one would expect to see a host of bills in the General Assembly proposing to reduce our tax burden.

 

Some bills have been introduced calling for the reduction of some taxes, such as reinstating the car tax relief that had been promised a long time ago or the elimination of the unnecessary taxes that were imposed this year. However, their future remains uncertain.

 

Astonishingly, the call for more revenues to state coffers continues unabated. Even some of our representatives who are considered friendly to the anti-tax cause are caught proposing new taxes. And please don’t fall for the line that fees, fines or penalties are not taxes. Any time the government reaches into the wallet of its citizens, it is imposing a tax.

 

A bill recently introduced appeals to the frustration of drivers who have to deal with our highly congested highways. Proposing to impose additional civil penalties to traffic offenders labeled “abusers”, it would dedicate revenues to a special fund that would back the issuance of bonds whose proceeds will be applied toward highway-related construction.  

 

A superficial read of this proposal should appeal to a large audience. Not only is additional money raised for building our highways, but higher penalties should deter drivers from driving irresponsibly. It ostensibly achieves the proverbial two birds with one stone.

 

When examining this proposal beyond the emotional level, however, one can only conclude that this is bad piece of legislation. It is based on seriously flawed legal principles and sets terrible legislative precedents.

 

At a time when the state is collecting abundantly more taxes than it needs to operate, any proposal to bring additional revenues to the Treasury is simply bad policy. More revenues lead to a bloated bureaucracy and remove any pressure to cut back spending.

 

From a fiscally conservative perspective, raising additional revenues at a time when government spending is experiencing unprecedented growth levels is unconscionable. That’s why it’s particularly troubling that presumably anti-tax legislators, such as Delegates Dave Albo, R-Fairfax and Jeff Frederick, R-Woodbridge, and Sen. Jay O’Brien, R-Fairfax, have signed up as the bill’s patrons. 

 

From a libertarian perspective, it is a horrible idea to enact revenue enhancing legislation that uses the state police as its collecting arm. If we start going down that slippery slope, what comes next? Using the state troopers to arrest taxpayers for missing their tax-filing deadline?

 

But what about the idea that higher fines will instill and promote responsible driving habits? It is doubtful that any drivers reflect on the associated traffic fines when committing traffic violations. Accordingly, it is extremely unlikely that such a bill will have any impact on improving our driving habits.

 

But the bill doesn’t merely propose to raise the penalties associated with bad driving. It also aims to increase the points assessed on a driver’s record after being convicted of a moving violation. For example, driving 15 to 19 m.p.h. above the posted speed limit will get you 5 demerit points, up from 4 points currently. Raising the points might make sense if it were deemed necessary for traffic enforcement concerns, but it makes little sense to include such provisions in legislation whose primary purpose is to increase revenues for highway construction.

 

And do not be misled that only serious traffic violators would be labeled as “abusers.” Just driving 15 m.p,h., above the posted speed limit will garner an additional $100 in civil penalties, over and above the traffic fines imposed for the underlying infraction.

 

Anyone who has driven on the Washington Beltway or any other Interstate highway across our Commonwealth knows that traffic usually moves considerably faster than the speed limit—that is when not experiencing bumper-to-bumper congestion. It is not unusual to get caught in traffic flaws moving at 20 or 30 mph above the posted speed.

 

Perhaps we need to crack down on speeding. Or perhaps the speed limits are set at unrealistically low levels. It is noteworthy that the maximum speed limit in other southern states is set at 70 m.p.h. not 65 m.p.h. as is the case in Virginia. Even on those highways traffic is usually moving much faster.

 

Is it, therefore, cynical to conclude that Virginia keeps the speed limits artificially low so that the state can collect more money from traffic violators? Regardless of what side one takes on this question, there is little doubt that the Albo proposal is intended to raise the bar even higher. In other words, if his bill were adopted, the state will be going out of its way to punish otherwise law-abiding drivers who are caught in traffic flaws moving faster than the posted speed limits.

 

On a personal level, for Del. Albo to be sponsoring such a bill also sets a terrible precedent. In proposing this legislation Albo is facing an apparent, if not actual, conflict of interest.

 

You see, Albo makes his living as an attorney representing traffic violators in court. A cynic could,  therefore, conclude that Albo’s sole motivation in raising the fines and penalties imposed on traffic offenders is to ensure that more of them would seek attorneys to represent them in traffic court.

 

I am confident that such a consideration is not what is motivating Del. Albo. Nonetheless, from a common- sense perspective, a legislator should never get caught in a position where one could question whether a particular bill is intended to personally enrich its sponsor.

 

All things considered, this is a bad bill that will only lead to bigger government. There is little doubt that money is needed for transportation improvements. However, money is pouring into Richmond and there is no excuse for calling for additional revenues at this time, no matter how noble the purpose.

 

-- January 4, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

Phillip Rodokanakis, a Certified Fraud Examiner, lives in Oak Hill. He is the managing partner of U.S. Data Forensics, LLC, a company specializing in Computer Forensics, Fraud Investigations, and Litigation Support. He is also the Vice President of the Virginia Club for Growth.

 

He can be reached by e-mail at phil_r@cox.net.

 


 

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