Bacon's Rebellion

Chump Change from a Big Account

—

by

James A. Bacon
in

Governor Warner carries an excess of political capital right now with his record-setting approval rating. He decided to spend a little of it yesterday, attacking Jerry Kilgore without using his name, as reported by Michael Hardy of the Richmond Times Dispatch:

Warner suggested that opponents of his record $1.4 billion tax-increase package should knock off their continuing criticism or say how they would fund their promises.

“I have heard statewide candidates complaining about our tax proposal” at the same time they’re proposing spending some of the additional dollars on their campaign promises, the governor said.

Those politicians, he said, want to use the state’s general tax collections to finance transportation improvements. But those dollars are needed for core state services, such as education and Medicaid. Those programs will require an additional $2 billion in the next two-year budget, he said.

Warner didn’t dig as deep into his account as he might have, failing to mention Tim Kaine by name.

Many Republicans are vexed as to why Warner is so popular for pushing a tax increase that turned out to be unnecessary. Pointing out the “unnecessary tax increase” doesn’t appear to be getting any traction. The problem might be found within this response:

“What is too often lost in budget discussions is the fact that tax increases are responsible for only a small part of the massive and growing surpluses,” said Tucker Martin, a Kilgore spokesman.

Tucker Martin’s formulation just doesn’t have any punch. Republicans need to find a snappy shorthand to “bumper sticker” this issue. They’d do well to actually consider challenging the Warner strength: fiscal management. If Kaine is going to ride Warner’s coattails, the coattails need to be roughed up. Warner’s fiscal record might seem unassailable, but the tax increase that turned out to be unnecessary is a good target, even if it’s difficult to get in the cross-hairs.

Of course, pressing the unnecessary tax increase issue might make some GOP delegates uncomfortable and might open Kilgore up to more questions about his spending plans. Campaigns are about choices, though, and the Kilgore campaign needs to decide if they want and need this issue to work.

Share this article

ADVERTISEMENT

(comments below)

Comments

Comments

  1. Jim Bacon Avatar
    Jim Bacon

    Will, I think the reason that Republicans aren’t getting any traction on the tax-hike issue is that Warner structured the tax hikes so that they feel disproportionately upon a small number of high-income households. For most people, the rejiggering of the tax code was largely neutral or even marginally beneficial. Therefore, when ‘Pubs complain about the tax hikes being unnecessary, it just doesn’t resonate with most people. “It didn’t impact me. Who cares?”

    The downsize of the tax hikes — increasing the top tax bracket — is long-term and insidious. They make Virginia marginally less attractive to high income-earners to move here or stay here. Virginia becomes marginally less attractive in the competition for human capital. But the impact is invisible: It’s not as if we’re going to lose a corporate relocation project to North Carolina or Maryland as a result. And it plays out over a long time. The negative results are too diffuse to bring to bring to anyone’s attention.

    Finally, I would note, the tax hikes are cumulative. Combine the 2004 tax hikes with whatever the General Assembly concocts for transportation in 2006, and it adds up. Virginia is morphing from a low-tax state to a moderate-tax state. That will have a long-term impact.

    But, like you say, it’s tough boiling down that argument to fit a bumper sticker.

  2. Paul Avatar
    Paul

    Is this tiny tax increase enought offset needed investments in higher education and K-12 that will BRING human capital to the state?

  3. Anonymous Avatar
    Anonymous

    “snappy shorthand to “bumper sticker” this issue”

    How about this: “Warner lied and limited government died”

  4. Paul Avatar
    Paul

    How about:

    “The GOP: We bitch about extra revenue, and then promptly spend it.”

  5. Anonymous Avatar
    Anonymous

    I’d agree with Paul if he put the word’s “The Chichester/Potts Liberal Wing of” in front of his statement.

  6. Victoria Avatar
    Victoria

    and now that the Rainy Day Fund is full? what happens next? Bumpersticker contest begins now – Warner was wrong! I want my money back! NOW! OR It’s our surplus, not the government’s – give it back! Mark and John were both wrong! Wilder never raised taxes! WILDER 09!!! Even Clinton admitted he raised taxes too much – SAY IT MARK! SAY IT! Confession is good for the soul, but I want my money back! Fool me once shame on Warner, fool me twice – NEVER!

  7. Anonymous Avatar
    Anonymous

    The reason Warner is so popular is that he told the truth. You can’t cut taxes and expect better roads, investment in higer education and in help for kids in K-12. I have some good bumper stickers…

    cut taxes and cut education!
    cut taxes and cut transportation!

    This is what cutting taxes means to most of Virginia voters. We are sending our kids to colleges that require higher tuition and use more out of state students thanks to a reduction in state investment. We get a chance to think about these things while we’re stuck in traffic.

Leave a Reply

ADVERTISEMENT