Dear
Legislator:
On
behalf of the National Taxpayers Union’s (NTU) 9,300 members in Virginia, I
urge you to take advantage of this year’s legislative session to reduce
spending and avoid burdensome tax increases.
Although
Virginia’s fiscal policies are better than those practiced in many other
states, including neighboring Maryland, there is still ample room for
improvement. Virginia’s state and local tax burden per capita is the ninth-highest
in the nation, according to the Tax Foundation. Also, the General Assembly has,
for years, devised taxing, spending, and borrowing schemes to expand government
by billions of dollars, especially for transportation projects. To move beyond
this destructive cycle, the General Assembly should work to enhance tax
competitiveness and keep the budget manageable. To reach these goals, several
courses of action are necessary.
First
and foremost, the General Assembly should reject proposals to increase taxes.
One particularly troublesome example, House Bill 2341, would impose a new
20-cent per bag tax on plastic bags. Although some claim that this is an effort
to protect the environment, in reality HB 2341 is an onerous tax hike (especially
on working families) that makes shopping more expensive and diminishes
manufacturing job opportunities. Moreover, the ecological benefit from this
approach is questionable, as taxes on plastic bags in the District of Columbia
and Seattle have had a negligible impact on cleanup efforts. Perhaps most
ironically, these taxes have even resulted in consumers using bags that contain
hazardous chemicals or collect harmful bacteria.
In
addition to rejecting efforts to increase taxes, the General Assembly should
reduce spending along the lines suggested by Governor McDonnell in his budget
amendments for K-12 education, the state lottery, and public broadcasting. The
General Assembly should likewise consider the Governor’s proposal to privatize
the antiquated state-owned liquor store system.
Although
everyone recognizes the importance of transportation in the Commonwealth,
especially in Northern Virginia and Hampton Roads, that is not an excuse for
massive spending increases or borrowing that will only lead to higher taxes in
the long run. Instead, the General Assembly should more actively pursue
public-private partnerships to repair, maintain, and build infrastructure. The Commonwealth is replete with projects,
such as the Norfolk-Portsmouth Midtown Tunnel, constructed through such
partnerships that meet critical transportation needs while reducing costs for
taxpayers. Other tools such as life-cycle budgeting and technical auditing can
help to ensure that funding is properly prioritized and economically efficient.
Virginians
are counting on their elected officials to enact policies that will allow an
economic recovery to gather strength, not hinder the prospects of growth and
prosperity. NTU and its members across the Commonwealth stand ready to work
with you toward achieving these vital ends.
Sincerely,
John
Stephenson
State
Government Affairs Manager
CC: Governor
Robert McDonnell