EDITORIAL: Scare tactics in Richmond

By | Tuesday, June 24, 2008

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The Virginia General Assembly yesterday began its latest special session to deal with the state's transportation problems. Democratic Gov. Tim Kaine wants to raise $1 billion per year for transportation through an increase in the motor vehicle sales tax, higher registration fees and a 1-cent sales tax increase for purchases in Northern Virginia and Hampton Roads on everything except food and medicine. Mr. Kaine's plan also includes creation of what looks like a huge boondoggle to benefit the politically well-connected. It is called a "Transportation Change Fund," and it would pay for mass transit and rail projects, telecommuting and ride-sharing, as well as harbor projects and airports that are deemed helpful to economic development. To pay for the fund, Mr. Kaine would increase the grantor's tax on home sales by 25 cents statewide.

Mr. Kaine's push for higher taxes was seconded by Virginia Business Council Chairman Allen King, who said the council would back Mr. Kaine's transportation plan or "any other initiative that uses broad-based taxes or user fees." Senate Majority Leader Dick Saslaw, Fairfax Democrat, proposes increasing the state gas tax. The theme has emerged.

Mr. Kaine and Mr. King outlined a taxing campaign of sorts: Prepare to watch the state's infrastructure start to rot if taxes are not increased. Virginians, Mr. Kaine said, are "smart" because they realize the economy won't improve "by letting your transportation infrastructure degrade." Said Mr. King: "After many years of indecision have caused us to head in a dangerous direction of declining transportation infrastructure, the time is now to change course by reaching consensus on an adequate funding plan."

There you have what the special session is all about: Virginia's liberal political establishment is tag-teaming with the commonwealth's corporate elite to scare the public into financing new transportation projects - their way - by increasing taxes and creating pork-barrel programs like Mr. Kaine's Transportation Change Fund. If this movie sounds familiar, that is because Virginia went through the same routine four years ago, when then-Gov. Mark Warner waged a sky-is-falling campaign to win passage of a $1.4 billion tax-increase package for transportation. Within weeks of the bill's passage, new information on tax revenues leaked out, showing that the scare stories were untrue, and that a tax increase wasn't necessary. It would not come as a shock to learn that the same thing is taking place today.

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