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	The 2004 Tax Debate Largest Tax Increase In VA's History

Two years ago, voters sent a strong message to lawmakers by rejecting the sales tax hike. One year ago, voters elected lawmakers who promised to oppose higher taxes. This year, however, it seems that some lawmakers have short memories. Despite the fact that Virginia has a budget surplus, some lawmakers fought for the immense tax increase and won. During his election campaign, Governor Warner promised not to raise taxes. Working closely with the Senate, the governor enacted new taxes impacting every facet of our lives.

In a vote of 52 to 48, lawmakers passed the largest tax increase in history. There will be higher sales taxes, taxes on electricity, gas, water, cigarettes, alcohol, and on home sales. In addition, the $6,000 senior tax deduction was eliminated for those who have not already turned 62 years old. The governor also began dismantling the car tax relief that had been promised to Virginians.

Delegate Black was a vocal opponent of these taxes. "I am disappointed in those who supported the tax increase. It hurts senior citizens, working families and doesn't use any of the money to improving roads," Black said in a statement last week. "Virginia's families have to live within a budget but the government has proven that they will simply take as much as they want even if there is no need."

According to the US Census Bureau, Virginia ranks 28^th nationally in total tax burden. With the stroke of a pen, we would move to approximately 15^th, becoming one of the most highly taxed states in America.

The Governor claims we need higher taxes to retain our AAA bond rating. However, Bob Kurtter, Senior Vice President for State Ratings at Moody's Investors Service, said, "If the decision of the Commonwealth is not to raise taxes, then fine; just don't continue to spend more than you raise."

Virginia's economy is beginning to grow again. Even the Governor's own budget estimates project that Virginia will have $1.5 billion in additional revenue. Passing the largest tax hikes in Virginia's history at this critical time could jeopardize Virginia's recovery. At a time when the economy is just beginning to turn solidly upward, we needed to stay the course.

Delegate Dick Black's spirited, unwavering leadership to fight the massive wave of tax increases inspired taxpayer activists across the state. For that reason, Taxpayers for Accountable Government (www.LoudounTaxpayers.com) named Delegate Black the Virginia Taxpayers' Advocate of the Year for 2004.