The Club for Growth

Phillip Rodokanakis


 

 

Virginia's Fiscal Windmill

Virginia's politicians have proven themselves incapable of reining in state spending. The only recourse is enacting constitutional spending limits, A Taxpayer Bill of Rights.


 

"Common sense is what tells us the Earth is flat and the Sun goes around it” --Anonymous

 

Sen. John “tax them until they’re dead and then hit them with the death tax” Chichester, R-Northumber- land, is on the war path. Like a modern Don Quixote, he is crusading to convince us that Virginia cannot be run on an "automatic pilot" — yes John, and windmills are evil instruments erected by the flat earth society.

 

What automatic pilot, you ask, has rallied Sir John? Well, of course, it is all this talk about TABOR (Taxpayer Bill of Rights), also known as TEL (Tax and Expenditure Limits). You see, the talk about TABOR is no longer restricted to online columnists (see “Taxpayer Bill of Rights,” Feb. 2, 2004).

 

The flat-earth barbarians are at the gates of Richmond, seeking to impose spending limitations on the Senate good-old boys that have run the state budget from time immemorial. And Sir John is not going to take it any more—he’d rather fight than switch his ways.

 

And what barbarians, you ask, is Sir John targeting with his automatic pilot talk? Obviously the likes of the scholars at the Virginia Institute of Public Policy, who published a white paper entitled “The Case for a Virginia TABOR”—a paper that dared to conclude that had a TEL been in effect requiring refunds of surplus dollars, Virginians would have been $11.7 billion richer during the 1992 to 2002 decade.

 

It is bad enough when academicians trespass on the tax-and-spend domain of the Senate Commissars by conducting research and publicizing their findings. But these barbarians have crossed the Rubicon (I mean, Rappahannock)!

 

Can you believe the gall of John Taylor, the President of the Virginia Institute for Public Policy? He wasn’t simply content to sit on his laurels after having published his think tank’s paper. Instead he came up with the idea of formulating an 11 point agenda, dubbed “The Freedom and Prosperity Agenda.”

 

The agenda contains 11 planks for better state government. The first plank calls for—you guessed it—a constitutional amendment creating a TABOR that would limit increases in state spending to the rate of population growth plus inflation. Other initiatives spelled out in the agenda call for commonsense initiatives like eliminating the car and death taxes, controlling skyrocketing real estate taxes, eliminating the war of 1812 (BPOL) tax, allowing parental choice in education, protecting transportation trust fund money, etc.

 

And unlike most academics, who simply publish papers, John Taylor has taken to the road talking to politicians across the state and having them commit to this agenda. As of last count, almost 25 percent of the members of the General Assembly had already signed up.

 

Obviously, these sorts of actions are a direct affront to Commissar Chichester who presides over Virginia’s fiscal policies. By golly, there is no room in Virginia for the masses to have a say in the management of the state.

 

The voters are only supposed to go to the polls once in a while and otherwise remain silent. Sir John is responsible for steering Virginia’s state vessel, no matter whether a Republican or Democrat occupies the Governor’s mansion—after all, governors come and go every four years!

 

Hence, Sir John could take it no more. He came out of the obscure cloakrooms of his Senate Finance Committee and drew a line in the sand: “[In Virginia] there is no place for ‘automatic’ anything.”

 

In an Op/Ed issued on July 26, 2005, the good Senator lays out the argument against automatic triggers. For example, he says it would be just as nonsensical to automatically refund a surplus as it would be to automatically send out a special tax assessment in years where revenues fall short of the forecast.

 

You must excuse the Senator for his momentary lapse in memory, because in Virginia we already automatically send out special tax assessments every year. They are called real estate assessments and result in automatic tax increases.

 

He also says that when there is an unexpected surplus, we can exercise our fiduciary duty to weigh competing priorities and make the best choices. The Senator obviously defines fiduciary duty as raising taxes in the face of a forecasted surplus (as was done in 2004).

 

By fulfilling his “duty,” he now presides over an even larger surplus which he is fiercely doling out to sustain Virginia’s tax and spend cycle. Accordingly, we can permit no talk of rebating the surplus to the taxpayers.

 

Chichester is right when he says that automatic “rules to live by” can’t substitute for good judgment and accountability. But herein lies the problem: Our Senate Commissars have shown neither good judgment nor accountability. (See "Accountable Government,” July 25, 2005).

 

As John Taylor likes to say, it took 386 years for Virginia to have a $30 billion biennial budget; yet it took only 10 years to add another $30 billion. And this spending spree took place under the watchful eye of Sir John and his Senate cronies.

 

It is now evident that we can no longer trust politicians, like Sen. Chichester, to show either good judgment or be held accountable for their irresponsible spending actions. That is exactly why enacting a TABOR or TEL is essential for the long-term economic viability of our Commonwealth.

 

The Americans for Prosperity Foundation, recently issued a report grading the states’ TEL initiatives. Obviously, Virginia got an “F.” What is surprising from this report, however, is the fact that liberal bastions like Massachusetts, Connecticut, and Hawaii received passing grades, while even Washington State received a “B-.”

 

Virginia is at a crossroads. It can continue following irresponsible fiscal policies that are destined to bankrupt the state or it can amend its constitution to rein in irresponsible government spending. And if the voters choose the latter course of action, we must define spending limits for our politicians—precisely because they are incapable of controlling themselves when it comes to spending our money. 

 

-- August 23, 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 President of the Virginia Club for Growth.

 

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

 

Read his profile here.

 


 

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