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Statement of Former Governor Douglas Wilder and Senator George Allen  
3/2/2004 10:27:10 AM  

Regarding the current Virginia tax debate
 

State Capitol

Richmond, Virginia

March 1, 2004

We believe Virginia is at an important crossroads.

Regardless of one's party or philosophy -- and we have had our disagreements -- this fundamental truth must be acknowledged: Our system of representative government cannot long survive the cynicism and mistrust that result when public officials get elected to office by promising one thing while intending all along to do the opposite.

We have spent our time in public life working to restore the people's confidence that their government works for them, and not the other way around.

The whole course of the tax discussion now underway in Richmond conveys exactly the opposite message to Virginians. And that is wrong.

In 2001, the successful candidate for governor promised two very significant things repeatedly. One was that he would not support tax increases. The other was that he would not raise the Sales Tax for transportation in any region unless first approved in a referendum.

In 2003, many candidates for the Senate and House of Delegates -- especially many Republican candidates -- were quick to assure voters in the nominating and general election campaigns that they had no plans for tax increases.

Throughout last year, many responsible voices urged that tax reform plans be developed in the open and put on the table so that citizens could have a voice in November. The Governor and senior legislators ignored those calls and worked out their tax plans behind closed doors, keeping Virginians in the dark until after the election and then offering tax-hike plans costing billions. No serious person could contend that the need for tax increases ranging from one to four billion dollars was suddenly discovered after the election.

We have endorsed and supported some of these statewide and legislative candidates. Like most Virginians, we took their assurances of opposition to higher taxes at face value. And, like many Virginians, we now are distressed to see them unveil plans for billions in new taxes that could harm economic growth and job opportunities for Virginians.

The effort to exclude the everyday citizens from the current tax debate has been so successful that the voice of the ordinary hard-working Virginia taxpayer is hardly being heard in Richmond today. Instead, government insiders and lobbyists for various interests are dominating the discussion.

This high-tax lobby only cheers louder each time the tax-increase advocates demand agreement on billions in new taxes and threaten to shut down state government if they do not get their way.

As a result, both the trust of Virginia voters and the fiscal reputation of the Commonwealth are in serious jeopardy today. And before this charade damages both, we have decided to reach across party lines and offer a more principled approach:

Because the people of Virginia were promised their taxes would not be raised, we believe our fellow citizens deserve an opportunity to vote by referendum before such broken promises are enacted into law.

In 2002, the Governor and General Assembly said it was unfair to raise the taxes of the people of Northern Virginia (the Governor's home area) and Tidewater without a referendum. We believe the same standard should apply to all regions, especially given the massive nature of the taxes now at issue.

There is a business-like way this can happen as the budget is finalized over the next two weeks. The General Assembly can adopt a budget that provides funding for the necessities - education, other key services, and replenishing the Rainy Day Fund -- without tax increases.

Provisions for additional spending and higher taxes can then be added, but to become effective only if approved by voters in a referendum.

Right now, average Virginians have not only been effectively locked out of the process; they are being scared into believing there are only two choices -- huge new taxes or a government shutdown come July 1. That is a false choice. Timely action on the budget, and a referendum on any increase in taxes, provide a better way.

There is more at stake here than just finances, as important as they are. What is at stake is the basic bond of trust between the people and those they elect to serve them.

The people elect public servants to use their judgment. But the system only works when those who make promises at election time believe what they are saying when they say it and do their best to keep their word once in office.

Virginians will find it difficult to support people for office whose record cannot pass this straightforward test.

For those elected officials who did not purposely mislead the voters, but who have since come to a genuine belief in the need for higher taxes, the referendum we propose provides an opportunity to do the right thing and keep faith with the voters who elected them.

If those who advocate BILLIONS in record Income, Sales, Cigarette and Gas Taxes truly believe they have the support of the public, then our proposal to do what the Governor and General Assembly provided in 2002 -- require approval by referendum before new taxes become law – should not be feared by them at all.

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