Alternative proposed to Warner tax increases

• Article
• Comments ()
• Click-2-Listen
• Videos

By

RICHMOND -- Republican lawmakers are trying to hold the line against Gov. Mark Warner's call for raising sales taxes and income taxes to balance the budget.

Some say there is still fat in the state budget that can be cut. Others say the strengthening economy will produce enough revenue, if state spending doesn't increase.

Either way, they say, the budget doesn't need the $1 billion revenue boost from the Democratic governor's plan to raise the sales tax from 4.5 percent to 5.5 percent.

State Sen. William Bolling, Caroline County Republican, said tax increases and budget cuts will not be necessary because of the improving economy.

"The worst of our economic troubles are behind us," said Mr. Bolling. "Under the worst-case scenario, it seems every state agency will have more money next year."

A House Appropriations Committee memo outlines ways to cut $1 billion from the budget, essentially erasing Mr. Warner's proposed tax increases. The memo, which is being used as a framework for a new budget, suggests spending cuts across the board, including the elimination of a pay raise for state employees and cuts in public safety, education and Medicaid.

In addition, the House Rules Committee on Wednesday passed a resolution asking Mr. Warner to resubmit his budget without the tax increases.

Besides raising the sales tax, Mr. Warner's two-year, $59 billion budget would increase the cigarette tax from 2.5 cents per pack to 25 cents, and raise the state income tax on households that earn more than $100,000 a year. It also calls for $2.3 billion in new spending, mostly for education and health and human services.

"People in Virginia are taxed plenty," said state Sen. Kenneth T. Cuccinelli II, Fairfax County Republican and a leading antitax advocate. "You can't just identify these kinds of savings and then blow it off the following year and try and raise taxes."