Another State Wants to Raise Taxes- Now it is Virginia

FreedomWorks Calls on Virginia to Cut the Budget, Not Raise Taxes

(BUSINESS WIRE)--When states are faced with a budget deficit, the fiscally prudent solution is to tighten the budget and cut bureaucratic waste before increasing taxes on strapped citizens. Virginia is currently facing a $2 billion budget shortfall, which is due in part to over-spending when times were good. FreedomWorks is disappointed that Gov. Timothy Kaine has proposed a 100 percent increase in the state cigarette tax.

FreedomWorks opposes raising taxes, especially in an economic recession. Cigarette taxes are historically a failed public policy and do not bring in anticipated revenue as smokers either cut back, cross borders, or turn to the black market for their cigarettes.

Cigarette taxes are regressive, disproportionately hurting poor families’ budgets. Small business owners, the backbone of our economy, would also be devastated with a loss of a critical revenue stream.

FreedomWorks issued a call to action today to its members in Virginia, asking them to contact the General Assembly and Governor Kaine. FreedomWorks volunteers will deliver the message that this tax increase should be defeated, and the size of the bloated state budget should be reduced.

FreedomWorks President Matt Kibbe commented:

“It is unfortunate that in tight budget times politicians resort to gimmicks to fill budget holes. These problems are often created by their inability to rein in spending during the good times. The Virginia General Assembly would best serve the citizens by rejecting all tax increases and instead look for ways to shrink government and cut spending to cover the budget deficit. Rejecting tax increases would send a strong message to Governor Kaine that as Virginians prepare to live on a budget, so should the government."

ABA Statement: NY Governor's Sweeping Tax Hikes on New Yorkers Add Strain to Checkbooks and Put Paychecks at Risk All During a Time of Recession

Is this what we are all heading toward in the recession? Higher taxes during a struggling economy?

/PRNewswire-USNewswire/ -- As families are struggling to make ends meet during a recession, it is disappointing that Governor Paterson's budget proposal contains such sweeping tax hikes on hard-working families. In an economy like this, the last thing government should be doing is raising taxes on people.

The governor's proposed budget hikes taxes on an array of consumer goods and services. It imposes an astounding 18 percent sales tax on regular soft drinks and juice drinks -- a regressive tax that will hurt most those least able to pay. And the budget proposal expands the 5-cents-per-container bottle bill tax to include bottled water and juices, again adding to the family grocery bill.

The budget also calls for new taxes or tax hikes on clothing, shoes, gasoline, auto insurance, health insurance, health care, beer, wine, cable and satellite TV, bus and taxi rides, movies, the theater, health clubs, and DMV fees, among other everyday goods and services. It also proposes hikes in college tuition -- and more.

These tax hikes are insensitive to families who are facing tough and painful economic times. Many New York families are already struggling to keep their homes, pay their bills and still buy some holiday gifts, all while hoping that the recession doesn't take their jobs. It's mind-boggling that government would propose to pile onto their struggles with new taxes on so many aspects of their everyday life.

Furthermore, the proposed sales tax on regular soft drinks is simply a facade for raising taxes. Singling out one particular product for taxation won't even make a dent in a problem as complex as obesity. This point is supported by science as well as common sense. If we want to be serious about battling obesity, we need to comprehensively address the consumption of all foods and beverages in moderation and get more active as a society. It's discouraging that some are perpetuating the myth that taxing one product will make a difference in obesity, or even contribute to fighting the problem. It won't.

The severe tax hikes on beverages would put at risk good-paying jobs with good health benefits for many hard-working New Yorkers -- hitting them in both their checkbook and their paycheck. The beverage industry supports 160,000 jobs in New York communities large and small, providing a direct economic benefit to the state economy of nearly $7 billion and an indirect benefit of $25 billion.

We appreciate the budget challenges facing the state. And we look forward to working with the Governor and lawmakers on solutions that don't add to the burden of the people of New York during tough economic times.

During the recent campaign season, the people of New York and America were promised middle-class tax relief. Instead, in New York, they're at risk of getting a giant tax bill added to their already stretched checkbooks. This isn't what taxpayers were promised. And more taxes are not what families need in these tough times.