Guest Column

Peter Ferrara


 

Little Boy Blue

 

Like the fabled farm boy who fell asleep while the farm animals ran wild, Virginia voters appear oblivious to out-of-control state spending -- surging 36 percent potentially in just four years.


 

Aren’t gas prices already high enough? Not according to former Gov. Mark R. Warner, newly minted Governor Timothy M. Kaine, and Swedish-socialist Republican state Sen. John H. Chichester, R-Northampton.

 

After the record tax increase of 2004, $1.4 billion over the first two years alone, and an accumulated surplus of $2 billion since then, the tax-greedy trio now want to increase gas taxes to raise another $4 billion in state funds in just the first four years. They insist that money is needed for transportation. But what about the sharply increased taxes we are already paying, and the record surplus they have generated?

 

Little Boy Blue, come blow your horn.

The sheep’s in the meadow, the cow’s in the corn.

Where is the boy who looks after the sheep?

He’s under the hay stack, fast asleep.

 

That pretty much describes the fast-asleep voters in Virginia, who don’t know that Virginia has the most out-of -control state budget growth in the country. Tax and budget growth trends in Virginia are now well to the left of California and Vermont, not to mention formerly liberal Maryland and whacked out D.C.

 

The last two-year budget, for fiscal years 2005-2006, actually increased state spending by an extremist 19 percent over the budget adopted for the previous two fiscal years. That 2005-2006 budget was the one that incorporated the record, $1.4 billion tax increase. Warner, Chichester, and other fabulists told us over and over that the tax increase was needed to close an otherwise unmanageable deficit.

 

But the resulting $2 billion surplus shows us how divorced from reality these arguments were. Spending for the fiscal 2005-2006 budget could have increased more than 11 percent without any tax increase at all. But that wasn’t enough for Warner, Kaine and Chichester, who wanted a truly out-of-control state spending increase of 19 percent. That is why they increased taxes so much: not to balance the budget but to increase increase state spending by 19 percent rather than 11 percent.

 

Have your wages increased by 19 percent over the last two years? Probably not even close. Yet the state thinks it is entitled to a 19 percent raise.

 

But that is just the beginning. In the new budget, for fiscal years 2007-2008, former Gov. Warner proposed another whopping spending increase of 14 percent. But that wasn’t enough for urban liberal Tim Kaine, who has proposed adding another $1.6 billion in state spending, to make the total spending increase 16.6 percent. The proposed gas tax increase is to support that new 16.6 percent increase in state spending. State spending in the new budget can still increase 12 percent without any tax increase. Even without raising taxes, the state could devote an extra $2 billion to transportation over the next two years, and still increase spending on other priorities by another $6 billion.

 

That should be more than enough to provide another healthy increase for education, with plenty of money still left over. A state spending increase of 35.6 percent in just 4 years, that is what Warner, Kaine and Chichester have endorsed. How much will your income increase over those 4 years? Probably less than half that.

 

The bottom line is that the state can’t keep increasing spending and taxes more rapidly than income growth, taking a larger and larger share of the incomes of working people every year. That is an extremist and oppressive policy.

 

The state House of Delegates recognizes this, and has passed a more-than-adequate state budget with ample increases for transportation, and no tax increase. Underappreciated House Appropriations Chairman Vincent F. Callahan Jr., R-McLean, should be commended for his good work again and again over many years.

 

But 17 of 23 Senate Republicans joined every Senate Democrat to pass the extreme $4 billion gas tax increase 34 to 6. Based on my personal experience, I can tell you that these putative Senate Republicans really have no idea what they are voting for. They have no understanding of budget totals and trends, and are completely personally dominated by the increasingly foggy but dogged Sen. Chichester.

 

But their votes will be remembered and they will be held responsible sooner or later. Just ask Sen. Ken Stolle, R-Virginia Beach, who cosponsored a Chichester bill in 2004 to increase state taxes more than three times as much as the liberal Democrat Governor Mark Warner proposed. When a Congressional seat opened up in his district, the local Republicans gave the nomination instead to state Del. Thelma Drake, who had opposed the 2004 tax increase.  Stolle would be a member of Congress today if he had not let Chichester confuse him into what was actually an extremist, nutcase position. Stolle understands none of this to this day.

 

Former State Sen. Bill Mims also cosponsored that ridiculous Chichester tax increase bill out of complete personal confusion. Today he is Deputy Attorney General to Bob McConnell, with obvious plans to run for Attorney General himself in 2009. When he does, he can rest assured that every Republican primary voter in the state will know he sponsored the highest tax increase bill in the state’s history, which would have increased state spending by well over 20 percent compared to the previous budget.

 

But we cannot ignore the Senate Democrats, some of whom fervently support a now established state taxing and spending trend that, if not stopped, will ultimately lead to 99 percent of personal income in Virginia going to taxes.  That is the inexorable mathematical result of increasing taxes faster than income year after year.

 

The true secret of the state Democrat Party is that it long ago abandoned representing the little guy, and is now firmly in the pocket of Big Business. Just look at Fairfax County where Chairman Gerald Connolly plots with Tysons Corner big shots to make billions for them by turning everything from Tysons to Dulles into midtown Manhattan. He buffaloes local, grassroots Democrats with talk of creating “livable” communities where you can walk from your residence (high rise apartment) to your office (high rise office) and to shopping, entertainment, restaurants (just like in Manhattan).

 

Right now these New Democrats are most menacing to working people through their tax policy. They passionately support, as absolutely essential to social services, sharp increases in the taxes paid by low and moderate income working people, such as sales taxes and gas taxes. But nowhere do you see any Democrat proposing increases for that oh-so-essential revenue in the corporate income tax or any other tax on big business.

 

What Virginia desperately needs is a Reagan-like figure who can tell the truth across the state about what is happening to taxes and spending. Someone who is not afraid to call to account John Chichester, Ken Stolle, and the rest of the truly wretched Senate Republican leadership, like everyone else in Richmond seems to be.    

 

Such a leader is needed to run for Governor on a platform that includes a four-year state spending freeze to offset the runaway spending we have suffered through the last several years. Essential spending increases in some areas can be offset by reductions in other areas over that time. Where to cut? A true Republican can start by taking a huge woodcutters axe to every item of corporate welfare now larded into the state budget. Cut it off not at the knees, but from the toenails up.

 

We can also look to innovative Medicaid reforms that responsible, innovative Governors in other states, like Jeb Bush in Florida, are starting to adopt. And how about the corporate community, particularly the supposed Tysons Corner progressives, stepping up to the plate and providing some jobs in each enterprise for those now destitute on welfare. Yes, how about throwing in some free job training there for entry level positions?

 

But their idea of progressivism seems to be more whopping tax increases on working people to finance still more corporate welfare for billionaire wannabees.

 

Then there is tax policy. We need to index the pitiful $800 state personal exemption to the federal exemption now at $3,200. We should reduce the top individual income tax rate from 5.75 percent to 4.75 percent. We should abolish the BPOL (Business, Professional, and Occupational Licensing) tax as a double tax on small business. And, yes, to offset some of this, we need to start looking at closing some special-interest corporate tax loopholes. Such a leader would not only be a much needed current of fresh air in the state’s politics. He would be a fountain of some much needed state party reform for both the Republicans and the Democrats.

 

-- February 27, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peter Ferrara is president of the newly formed Virginia Free  Enterprise Fund. His e-mail address is peterferrara@msn.com