Virginia Pundit Watch

Will Vehrs



Opposition Lines Develop on Warner Tax Plan

 

Gov. Mark Warner had the sound byte field to himself in the pre-holiday period after announcing his tax plan. Slowly, however, pundits have finished off their turkey leftovers and begun to study the plan, developing some promising lines of attack.

 

Del. Preston Bryant, R-Lynchburg, who writes for the Roanoke Times and will actually vote on the plan, sketched the battle lines:

 

If Warner is to succeed in selling his tax-reform plan, he must show how his reforms are in keeping with conservative economic principles that will foster an expanding Virginia economy. If he can't do this, then it'll be trumpeted by his critics that the $500 million his proposal transfers annually from the private sector to the public sector is just another Democratic grab for taxpayer bucks to fund bigger government.

 

A. Barton Hinkle of the Richmond Times-Dispatch focused on Warner’s “mantra-like insistence that ‘65 percent pay less’” and found it questionable. While he disagreed with Republican Chairwoman Kate Obenshain Griffin that “every Virginian will pay more in taxes,” the governor’s sound byte did not include the effect of reduced deductions for senior citizens and the increase in cigarette taxes. Hinkle conceded that the plan included “some good and necessary elements,” but “is not the sweeping reform the public was led to expect and the state badly needs.”

 

Hinkle’s boss at the T-D, Ross MacKenzie, elaborated on the missing reforms:

 

We have heard of the need for "tax reform," for "tax fairness," for "tax restructuring," for "code simplification." Not much of any of that here - and certainly not any vision. The Governor's plan cinches a little here, lets out a little there, tugs this upward, and pushes that down. No code simplification, but modest restructuring, dubious fairness, and utterly no wholesale reform. His plan complexifies and raises revenue.

 

GLARINGLY, THE PLAN leaves four realms untouched and one almost so: (1) corporate taxes, (2) gasoline taxes, (3) sales taxes on services, (4) business and professional license (BPOL) taxes, and (5) the estate tax.

 

MacKenzie offered advice to the General Assembly, reminding them of these “truths”:

 

No Virginian complains that his taxes are too low, every Virginian complains that the code is too complex, and, at the end of the day, in the constant effort to make life better, cutting taxes - as the great Nobel economist Milton Friedman relentlessly reminds - is never wrong.”

 

“More reform,” especially when General Assembly Republicans couldn’t agree on anything like it, will likely not be the battle cry of tax plan opponents. Look for them to zero in on the 65 percent number and relentlessly try to knock it down to below 50 percent.

 

Supporters of the Warner plan were not out in force on the op-ed pages. The president of Roanoke College, David Gring, praised the governor’s plan for its “fairness” in a Roanoke Times piece. Gring was candid in identifying himself as a member of the governor’s informal tax reform group. He also noted that he will pay more taxes under the plan and while he wasn’t “particularly happy” about it, it would be worth it because of those who have been paying an “unfair share.”

 

Special Interest Pleading #1

 

It’s already started. Retired auditor Orban Gregory of Wirtz became one of the first special interests to address the Warner tax plan. In a Roanoke Times commentary, Gregory defended tax deductions for the elderly, a target of the Warner plan.

 

Bad Refrain of the Week

 

The Potomac NewsJames Young criticized the lack of real reform in the governor’s tax plan, but we could do without those eight references to Mark Warner as the “Boyish Governor.”

 

Graft Needed to Fight Status Quo

 

The big news from Northern Virginia was the Town of Herndon’s rejection of a tax plan to extend Metrorail from Falls Church to Dulles Airport. Washington Post columnist Marc Fisher, noting that this follows on the heels of the region rejecting a sales tax increase for transportation, asked, “Isn't it clear by now that however awful the road congestion is around here, a lot of people don't especially mind it?” Steven Pearlstein, also of the Post, called the business leaders who have futilely supported tax increases “paper tigers.” He bemoaned the fact that Northern Virginia doesn’t have the institutional structure for “honest graft,” a means to “lubricate” political machinery to do the will of business moguls.

 

Can You Hear Me Now?

 

The Republican eavesdropping scandal refuses to go away. Now it’s Attorney General Jerry Kilgore who is hearing a ringing in his ears. Following up on dogged investigative reporting by George Whitehurst of the Danville Register & Bee, Bob Gibson of the Daily Press and Jeff Schapiro of the Richmond Times-Dispatch commented on phone records that may cast doubt on parts of the Kilgore account. “Unresolved questions remain that may detract from the praise given Kilgore if they remain unanswered and if the stated actions of key players remain in conflict,” according to Gibson.  Schapiro was more direct: “A suspicion, perhaps underscored by his awkward performance before a roomful of reporters and editors, that he knows a lot more than he lets on.”

 

A Chink in the Armor

 

Gov. Mark Warner has had a free ride from the press on his image as a business executive who would bring efficiency to state government. Jeff Schapiro previewed a Joint Legislative and Audit Review Commission (JLARC) report on the governor’s signature efficiency issue, creation of VITA, the Virginia Information and Technology Agency. The new organization still doesn’t have a leader, has an uncertain timetable for the transfer of employees, and the transition may cost more than projected.

 

“What Do We Do Now?”

 

That’s a famous movie line spoken by Robert Redford in the “The Candidate.” Thanks to Hugh Lessig and Terry Scanlon of the Daily Press, we were reminded that Virginia’s newly elected freshman candidates have a lot to learn starting the day after their victory celebration. The political duo reported on a “Freshman Orientation” session held at the state capitol. Danita Wilson, legislative aide to Sen. Thomas Norment, R- Williamsburg, told the newcomers, “Every day is going to be a zoo.”

 

The Pundit Who Saved Christmas

 

What, no Christmas tree, Charlie Brown? Dave Addis of the Virginian-Pilot lead an indignant public in criticizing the Statewide Fire Code, effective in October, that banned live Christmas trees in apartments and condos. Addis trotted out national statistics:

 

According to the National Fire Prevention Association, there were 368,000 residential fires in the United States in 2000, the last year for which numbers are available. Of those, just 370 involved Christmas trees, living or plastic. About 6,100 involved outdoor grills.

 

Compare that to the other causes: Smoking, 140,800; indoor cooking, 94,000; bad heating systems, 49,200; electrical problems, 38,300; clothes dryers, 14,300; and candles, 12,540.

 

One day after Addis’ column appeared, the state fire marshal relaxed the rules in rural areas and left enforcement in other areas to local discretion.

 

You’re a good man, Dave Addis. Happy holidays to all Virginia Pundit Watch readers!

 

-- December 15, 2003

 

 

 

 

 

 

 

Will Vehrs grew up in Prince William County. He has a degree in American history from the College of William and Mary and an MBA from Chapman University. Will's experience includes a stint with a Fortune 500 company and economic development work in state government. His "Punditwatch" column appears on FoxNews.com and Jewish World Review, as well as on his own Punditwatch website. He also writes for the Quasipundit political site.