|
If
the local grocery store overcharges you, you get a
refund. Today our state government has overcharged
you, but you won’t get it back without political
pressure. Let me explain.
Bucket
loads of money are flowing into the state treasury
far beyond what is needed to meet the approved
budget. Just look at the numbers. When the General
Assembly passed the current two-year budget in May
2004, it also raised our taxes by $1.5 billion to
“fill the gap” and pay for “needed
additions” in public education, Medicaid and
other “essentials.”
And
then when the General Assembly convened this past
January the state had a surplus of $1.4 billion
after only 6 months of the two-year budget. It was
readily spent. And now, with the closing of the
state’s books on June 30, there is an additional
surplus of $544 million. That’s almost a $2
billion surplus in the first year of the two-year
budget cycle!
The
Rainy Day Fund (the state’s reserve account) is
now fully funded. This means large chunks of
future surpluses won’t have to be funneled into
it.
So,
there are gobs of extra tax dollars flowing into
Richmond – far beyond what was required to
finance the current two year budget.
And
we are only half way through the two-year budget! There
is no reason to believe that surpluses won’t
continue into the second half of the budget cycle.
But
not one of Virginia’s political leaders has
called for a major tax rebate. Those who opposed
the recent tax increase aren’t promoting a tax
rebate. They point to the surpluses and say that
the tax increase wasn’t needed. But they
aren’t saying this extra money should be sent
back to the taxpayers. Why not?
Yet
the surpluses in the two-year budget could very
well be twice as large as the recent tax increase
and maybe more!
With
the Rainy Day Fund totally funded, it would not be
difficult to earmark the next $750 million for a
major tax rebate of $100 per person. How to
distribute this tax rebate can be determined later
– a check for each person, a rebate to those who
file income taxes, or some other fair and
equitable way to refund this clear overpayment of
taxes.
I’m
talking about a tax rebate from the “extra”
money that is available because the state is
bringing in billions of dollars more than was
planned for in this budget cycle. This huge
surplus is actually an overpayment by us taxpayers
and should be considered such.
A
major tax rebate is good public policy and it is
good politics.
If
Governor Warner really wants to draw a bright line
of difference between Senator Hillary Clinton and
him, he should call for a major tax rebate.
If
Jerry Kilgore wants to bring a truly exciting
issue to the governor’s race, he should call for
a major tax rebate today. You can see the yard
signs and bumper stickers now: “Give it
Back!”
This
campaign would ring as loud and clear just as Jim
Gilmore’s “No Car Tax” campaign and the
George Allen’s “Welfare Reform” and “No
Parole” campaign did a few years back.
If
Lt. Governor Tim Kaine wants to soften his image
as a very liberal Democrat, he should call for a
major tax rebate from the boat loads of money that
are pouring into the state coffers.
If
the House Republican Caucus wants to protect its
current majority and build an even larger margin,
it should call for a major tax rebate.
If
the Democrat Caucus wants to change its image and
push the Republicans back on their heels, then it
should call for a major tax rebate.
If
those state Senators who worry about their
re-elections in two years because of support for
the recent tax increase, they can buy off a lot of
heartburn by supporting a tax rebate.
But
so far, no one is calling for this “tax
overpayment” to be given back to the people.
There is an ominous silence by our elected leaders
and those who want to lead us over the next four
years.
Why
are all the anti-tax Republicans and all those
“gee-we-wish-we-didn’t-have-to-raise-your-taxes”
Democrats so willing to spend this incredible
surplus and not give some of it back in a tax
rebate?
The
political leader who picks up this issue and runs
with it will catch the imagination of the voters
and will be rewarded with victory on Election Day
this November.
--
July 25, 2005
|
