The Club for Growth

Phillip Rodokanakis



A Backroom Deal?

Jerry Kilgore hasn't come out in favor of higher taxes, but he refuses to sign an anti-tax pledge. A circumstantial case can be made that he's cut a deal with the pro-tax wing of the GOP.


 

State Sen. John Chichester, R-Fredericksburg, the Chairman of the Senate Finance Committee, is on the warpath for higher taxes. Without wasting any time or taking a breather from the massive tax increase he imposed on Virginia taxpayers last year, Chichester already is talking about increasing taxes again in 2006.

 

You will recall that Chichester was not satisfied with Gov. Mark R. Warner’s $1.0 billion tax increase proposal. So he countered offering a $4.0 billion increase in new taxes. Chichester’s ploy was nothing less than what former President Bill Clinton did with his triangulation strategy.

 

By working closely with the Warner Administration, Chichester forced the more conservative House of Delegates to go along with a tax increase which surpassed Warner’s original submission.

 

As reported before in this column (see: “Byzantium on the James”), it is no coincidence that the chief architect of Warner's tax plan, Finance Secretary John Bennett, previously had served as Chichester’s right-hand man at the Senate Finance committee.

 

Chichester’s desire for continuing to raise taxes is no secret. He has consistently talked about the need to shore up our damaged infrastructure, which he says we let go dormant.

 

Chicheste’s cabal in the Senate includes 17 other Republican Senators. That is 18 out of the 24 Republicans in the Senate. With a 3-to-1 margin, Chichester is pretty confident that he can control the State Senate and steer it in the direction of higher taxes.

 

To ensure total control over the Senate Finance Committee, only senators that were committed to voting for the tax increase were considered for appointment to this committee last year. That meant that at least one senator who had seniority and should have been assigned next to this committee, was passed over; the victim of Chichester’s trampling was Sen. Bill Bolling, R- Mechanicsville, who is now running for the GOP nomination for Lieutenant Governor.

 

Having achieved total control over the Senate’s tax-increase policies, Chichester has few reservations about disclosing his future agenda. It takes a lot of confidence—if not complete arrogance—for Chichester to lay out all his cards on the table, a full year before the 2006 General Assembly goes into session.

 

As reported in The Washington Post on Feb. 7, 2005, Chichester said the legislature should wait a year to make a major investment in what he called a "bill stuffed deep in the back" of the state's budget drawer. He hinted that he would consider new taxes next year to increase transportation spending.

 

In the meantime, Chichester’s sidekick, Sen. Walter Stosch, R-Glen Allen, has been saying that a $1.2 billion revenue surplus is really a $6 billion deficit. You see according to the Senator—the only Certified Public Accountant in the General Assembly, we are reminded—Virginia faces $6 billion in new commitments over and above our annual budget of approximately $30 billion.

 

Well folks, Enron, Worldcom, and Global Crossing had Certified Public Accountants audit their books and they all missed some of the biggest frauds of our lifetimes!

 

According to the Fairfax County Taxpayer Alliance, state spending has grown by $9.0 billion above what it would have had it been capped at the rate of population growth and inflation (and this was before last year’s enormous tax increase). So, where are all these unmet obligations coming from? Can we continue to allow spending to grow out of control?

 

While the Republican Party is split on the issue of taxes, where does the Republican leadership stand on this issue?

 

There is little doubt that the GOP’s State Central Committee has been outspoken against higher taxes. It has issued many proclamations and some of its members have openly challenged the tax-and-spend Republican legislators.

 

Unfortunately, the State Central Committee is not taken seriously by the elected politicians. Even though the State Central Committee is supposed to function as the party's board of directors, none of its resolutions or proclamations can be found anywhere on the party’s website.

 

Even though the party chairman, Kate Obenshain Griffin, spoke out in 2004 against the tax increase schemes proposed by the Republican Senate, there have been no follow up admonishments, condemnations or party resolutions against those who voted for the tax increase last year. Ditto for the other anti-tax Republican office holders, who may shake their heads but are unwilling to challenge their colleagues in public.

 

And what of Jerry Kilgore’s position on this issue? Kilgore is the presumptive Republican nominee for governor. With a Democrat in the Governor’s mansion, Kilgore has been acting as the titular head of the Republican Party and fully expects to be the party’s next candidate in what he would like to be a coronation ceremony.

 

It is true that Kilgore also spoke against the folly of raising taxes last year. But he came out only after U.S. Sen. George Allen (R) and former Gov. L. Douglas Wilder (D) had already spoken against the evils of raising taxes.

 

Kilgore has been telling us that he’s against higher taxes, but he has not articulated a message as to how he would govern if elected in November. To the contrary, conflicting messages have come out of the Kilgore camp.

 

For example, Kilgore and his campaign manager, Ken Hutcheson, have insinuated that the renegade Republicans who enacted last year’s tax increase should not be challenged. They have alluded that primary contests are divisive and should be avoided. In other words, they are championing the party’s unwritten “incumbent protection” rule. 

 

When Kilgore is saying that he’s against higher taxes, is he speaking from both sides of his mouth? Kilgore has refused to sign the Americans for Tax Reform (ATR) pledge against raising taxes—a pledge he had signed when he campaigned for Attorney General.

 

To add fuel to the fire, Hutcheson was the campaign manager for John Chichester, as well as some of the other pro-tax Republicans who were challenged in 2003. This is a point of contention that continues to irritate the fiscal conservative wing of the Republican Party. Can Kilgore really be trusted on the tax issue when his campaign manager is responsible for re-electing the folks that have saddled us with the largest tax increase in the history of our state?

 

Though misguided, Chichester isn’t stupid. It is hard to believe that he would announce his intentions to raise taxes in 2006 if he didn’t feel confident that he could advance his agenda no matter the outcome of the November 2005 elections. Undoubtedly, if Democrat Tim Kaine were elected as our next governor, Chichester believes he could continue the triangulation strategy that enabled him to successfully enact the tax increases he had advocated all along—excepting only a few months in 2003 when he was facing a primary challenge.

 

But what if Kilgore becomes our next Governor? Kilgore has been unwilling to repudiate the pro-tax Republicans. Having failed to renounce the tax option, has the Kilgore camp already hatched a deal with Chichester to raise taxes? 

 

As far fetched as this may sound, please keep in mind what was reported in The Washington Post on Feb. 25, 2003. R. H. Melton, interviewed Mark Warner and reported: “… some moderate Republican lawmakers, many facing primary election challenges this summer, have assured him privately that they will be his allies in the tax restructuring effort—an essential ingredient, Warner said, for legislative passage.”

 

Could history be repeating itself? Has Kilgore also struck a deal with the same moderate Republicans? And if so, at what cost to the taxpayers?

 

Kilgore cannot have his cake and eat it too. He must come out strongly against taxes. This means that he must publicly renounce John Chichester, Walter Stosch and the other Republicans who continue to advocate higher taxes. And he must sign the ATR pledge.

 

Anything less spells doom for Kilgore’s campaign. The anti-tax wing of the Republican Party bears visible scars from the many times it has been stabbed in the back by those who promote a cradle-to-grave nanny state. The pain is too recent for the party faithful to sign onto the Kilgore bandwagon solely on blind faith.

 

-- February 14, 2005

 

 

 

 

 

 

 

 

 

 

 

 

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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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