March 4, 2004

Dear legislator,

We write today to urge you to oppose any effort to increase the tax burden on Virginia's families and businesses. At a time when President Bush has cut taxes to grow the economy, some politicians in Virginia are seeking to take away up to 35 percent of the President's tax cut from working Virginia families. As a result of President Bush's tax cut, economic growth accelerated 6.1 percent in the second half of last year with 4 percent expected in 2004. Why would Virginia want to exempt itself from this growth?

The tax increase plans coming from the governor and the Senate are damaging. Ranging from $1 billion to nearly $4 billion, these plans would tax nearly every aspect of life in Virginia. Sales tax increases would raise the cost of living for every family, and hurt retailers at the same time. Increasing the income tax rate hits small businesses hardest, threatening the engine that drives job growth in the state. Gas tax increases would raise the cost of every good or service that has to be transported. Tobacco taxes and the myriad others being proposed would drain money from the private sector and shrink Virginia's economy.

Moreover, those who support higher taxes will find themselves on the wrong side of political trends. Every recent effort to raise taxes on the state level ended in humiliation for proponents when the people got to vote. Oregon and Virginia in the winter of 2002-03 started the trend. Then Gov. Bob Riley and the Alabama legislature tried to raise taxes in Alabama, and were voted down by a 68%-32% margin. Then Gov. Gray Davis was recalled for raising the car tax and spending irresponsibly. Then Gov. Kulongoski and the Oregon legislature had their tax increase repealed by referendum by a vote of 60% to 40%.

But many states have closed gaping budget holes without raising taxes. Gov. Perry of Texas closed a $10 billion gap without tax increases. Gov. Pawlenty of Minnesota, Gov. Benson of New Hampshire, Gov. Romney of Massachusetts, Gov. Owens of Colorado, and others performed similar feats. These governors and legislators are the ones with the bright political futures, while the likes of Gray Davis and Bob Riley face political oblivion.

For the good of families struggling to pay their bills; for the good of small businesses and entrepreneurs following their dreams; for the good of the students who will be graduating soon and looking for jobs; we urge you to oppose these tax increases and to find ways to balance the budget WITHOUT raiding taxpayers' wallets.

Sincerely,