Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, September 21, 1993 TAG: 9309210205
SECTION: VIRGINIA PAGE: C-4 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
- Dick Culbertson, Blacksburg
How do you feel about paying back the money they took from federal employees in their income tax that was illegal?
- E.C. Simpkins, Roanoke
I'm a retired Army veteran, and I want to know what the candidates' positions are on the taxes that we government workers were fleeced out of illegally, unconstitutionally by the state. And I want to know what position they're taking toward getting our money back to us and when. And I'm sure a lot of people here in Virginia in the same boat would like to have that question answered.
Charles Coleman, Salem
Mary Sue Terry:
"Unlike my opponent, I don't think that we ought to step up and begin writing a check at this juncture for half a billion dollars to any one group of individuals. I, as governor, will owe a duty to all Virginians, and to all taxpayers, and not a certain group. I don't think it's in the best interest of our commonwealth as a whole for this case to be politicized in this campaign. Playing politics with this issue is not in the best interest of Virginia as we move beyond the election and seek to find the best means to resolve it.
"The courts are the place where issues like this ought to be decided, and I think it's in our best interest to let this matter continue in the courts and cease talking about it during this campaign. George Allen, in my judgment, has pandered on this issue to a particular group. I don't know the extent to which he may have jeopardized the state's position in the process. While it may be good politics in his mind, I don't think it's good policy for the commonwealth of Virginia."
George Allen:
"Well, [Coleman is] exactly correct as far as his characterization of what happened. This is another of the major differences between my opponent and me. She was asleep at the switch and has continued to say the state should not pay back the taxes that were illegally taken from federal and military retirees. Her office's argument before the [U.S.] Supreme Court was that it would be too much of a burden on our state budget to have to make the refunds for that three-year period. That's a ludicrous argument. I'm sure most of your readers would love to be able to say `Sorry, I can't pay my taxes, it would have too much of an impact on my savings account.' And the Supreme Court in a 7-to-2 vote rejected her argument.
"So to me it's very clear, as well as to other experts who have examined this, that the state has a legal obligation to make these refunds. My view as to what we ought to do is settle with the federal and military retirees, pay it out over a period of years, whether you use bonds or tax credits; that way it won't have such a devastating impact on our budget. The obligation is now about $475 million, and the interest is compounding at rate of $3.5 million per month . . . .
"That not only would be responsibly handled for the federal and military retirees, but it's also good for the taxpayers. Once the Supreme Court rules against Virginia for a third time, Virginia's not going to be in a very good bargaining position, and it's going to be very difficult for the state then, with whatever the compounded interest will be, to come up with that compensation for the individuals who were illegally taxed.
"So we ought to meet the obligation. My opponent simply wants to sweep it under the rug until after the election, because this is something that goes to the core of her poor judgment and advice as attorney general."
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Keywords:
POLITICS
by CNB