Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, January 26, 1995 TAG: 9501260118
SECTION: VIRGINIA PAGE: C-1 EDITION: STATE
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Medium
The Republican governor's goal of cutting the business, professional and occupational license tax has aligned business groups with him against Democrats, who narrowly control the General Assembly, and local governments.
Eliminating the tax is a key provision of Allen's plan to cut $2.1 billion in taxes over five years.
At Wednesday's hearing before the Senate and House finance committees, business representatives said the tax is unfair and stunts economic development. Local government officials said they can't manage without the $300 million a year the levy generates.
Allen has proposed state subsidies to compensate for lost revenue, but local-government representatives said they don't trust the state to keep that commitment.
``Forgive us for being skeptics,'' said Hampton Mayor James Eason. ``We've heard those promises before.''
Tempers flared because House Majority Leader Richard Cranwell of Roanoke County allowed local government officials to speak first. Business representatives feared they would get too little time to make their arguments, despite Cranwell's assurances to the contrary.
Cranwell was visibly annoyed at repeated interruptions by Richmond real estate company owner Don Pavell, who claimed businesses weren't getting a fair shake.
``Sir, why do you insist on being recalcitrant?'' Cranwell asked.
Pavell complained that the committees seemed more interested in hearing from government employees than from private-sector citizens like himself.
Both supporters and opponents of Allen's bill were given 45 minutes to make their arguments before the committees recessed for the legislature's noon floor sessions. The hearing resumed in the afternoon, but some who had hoped to speak were unable to stay.
``I was told I was 13th on the list of speakers, and they never got to me,'' fumed Carolyn Wake, co-owner of Tom Brown Hardware in Richmond. ``I've got to get back to work, because there's nobody there to cover for me. I feel like I've been shortchanged.''
Allen spokesman Ken Stroupe claimed the hearing was deliberately stacked against tax-cut supporters.
``These business people have a right to complain,'' he said. ``They can't stick around here all day.''
But Cranwell said the hearing ``was as fair as it can get.'' During the afternoon session, Cranwell agreed with a suggestion from Del. John Watkins, R-Midlothian, sponsor of one of the BPOL repeal bills, to let opponents and proponents take turns speaking.
Cranwell said a vote on legislation is likely next Wednesday.
Allen claims Democrats are plotting to kill his tax cuts in committee to provide political cover for their colleagues. All 140 legislative seats are up for election in November.
Cranwell, who denied any such agreement, became agitated when Sandy Bowen of the state Chamber of Commerce said keeping the proposal from coming to the floor would ``make a mockery of the process.''
``Stop right there,'' Cranwell said. ``That's pure political baloney. How many times as a lobbyist have you asked me to kill a bill you oppose in committee?''
``Plenty,'' Bowen replied.
Allen complained again Wednesday that Democrats are trying to bottle up his proposals.
``Let them take a stand. Don't use some ruse, don't use some parliamentary procedure to let it stand in some committee,'' he told reporters.
Keywords:
GENERAL ASSEMBLY 1995
by CNB