Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, July 17, 1995 TAG: 9507170105
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
SOURCE: DAN CASEY
DATELINE: LENGTH: Medium
- Stephen Hampton, Roanoke
The background:
Gov. George Allen has made cuts in state taxes a primary objective. This year, he proposed $2.1 billion in income and business-license tax cuts. Allen said the cuts would save the average family $250 to $350 per year. Democrats argued Allen's numbers were wrong - that tax savings for a middle-income family of four would amount to only $33. Allen said Virginia ranked in the top one-third of the 50 states in terms of income taxes imposed on citizens. Yet a study by the National Conference of State Legislatures shows Virginia's total tax burden is one of the lowest in the country - and is falling. Meanwhile, localities across the state said they'd be forced to increase local taxes to make up for losses of business license taxes, which fund local programs.
Despite early skittishness that opposition to Allen's tax cuts would become a political liability in November's elections, the Democratic majority in the General Assembly stomped on the tax cut proposals. In closed-door meetings even some Republicans complained about them. Ultimately, all of Allen's tax proposals failed.
The General Assembly's role:
The General Assembly passes the budget that sets tax rates and state spending.
The answers
The question was directed to the candidates for the Senate seat covering Roanoke and most of Roanoke County.
Sen. Brandon Bell (R): "Like Mr. Hampton, all Virginians are overtaxed. As a state senator, I will continue to push for lower state income taxes. However, I must respectfully disagree with him that a state income tax cut would lead to a local tax increase. Two points: First, money we send to Richmond is often spent and lost there within the state bureaucracy. Second and more important, we can provide this relief by slowing the growth of state government. The money generated from that savings would allow taxpayers to keep their hard-earned money where it belongs, in their pockets."
John Edwards (D): "It depends. It's irresponsible to cut taxes at a time when we need more funding for education at all levels. For example, our state colleges and universities are suffering from cuts and need further support from the commonwealth. The reader is correct. Cutting state taxes and services merely shifts the burden to localities, which depend heavily on real estate and personal property taxes. Those are regressive and less fair to the average citizen."
Also on the record:
In most respects, Bell has followed an anti-tax stance. During the past four years, he voted against income tax increases for people making over $100,000; against a gas tax increase; against extending the state's sales tax to liquor; and against a 20-cent cigarette tax increase. But he voted for a bill allowing Roanoke County to more than double its hotel room tax, and for giving the county the authority to tax cigarettes.
As a city councilman since 1994, Edwards has not been faced with a vote on a major tax increase. But he and his colleagues have not proposed major tax cuts, either. This year, at his urging, council raised income limits in a city program that caps property taxes for low-income seniors and disabled people. Council, with Edwards' support, also adopted one minor tax increase - a 53-cent monthly increase in the telephone service surcharge. It will fund improvements to Roanoke's emergency 911 telephone service.
What other candidates say:
This is definitely an issue that divides candidates along party lines. Although no one is calling for tax increases, Democrats in the legislature this year ganged up on Allen's proposed tax cuts, calling them harmful to education and local government. Meanwhile, most Republicans backed the Allen proposals to the hilt. It's likely they will resurface if the GOP takes over the House and Senate in November.
Keywords:
POLITICS
by CNB