State GOP hammers Kaine for tax increases and Wagnerian numbers

One day after he first ripped Governor Kaine’s tax increase, Speaker Howell is at it again:

Right now, Virginia’s families and businesses small and large are having to make difficult and painful decisions regarding their own budgets.  It falls to us to do the same.  As the people we serve are struggling to live within their means and make do with the incomes they earn, they rightfully expect their government to adhere to the same standard . . . The House will meet this challenge, and is fully prepared to amend the existing 2008-2010 state budget without requiring any Virginians to pay more in job-killing taxes during an economic recession.

Fairly boilerplate stuff, but the important part is to keep firing, which is what Howell did.  Moreover, he had help from Bob McDonnell and Bill Bolling.  We’ll start with McDonnell (via Riley at VV):

I am disappointed however that the Governor has called for a tax increase. You should not raise taxes in a recession, and you cannot tax your way to prosperity. Another huge increase in the cigarette tax would potentially threaten a Virginia industry at a perilous time, while increasing the tax burden on many Virginia citizens and small businesses when they can least afford it.

Lt. Governor Bolling not only ripped the tax increase, he noticed something very disturbing about the projected revenue in the second part of the biennium (next year):

I am very concerned by the Governor’s proposal to increase taxes by $167M. Throughout this process the Governor has repeatedly promised to balance the budget through spending cuts, not tax increases; and it is very disappointing to see him renege on this promise. The people of Virginia expect their leaders to keep their word, not break their promises.

I am also concerned that the Governor’s tax increases could have a devastating impact on tobacco industry jobs in Southside and the Richmond area. Given the overall economic slow down, these businesses are already suffering enough, and now is not the time to place additional tax burdens on their shoulders.

I also continue to be concerned that the Governor is basing the budget on overly optimistic revenue projections in the 2009/2010 fiscal year. At a time when the economy is struggling and state tax collections are declining, the Governor continues to estimate that we will see economic growth of 4% in the upcoming fiscal year. If we fail to meet these revenue projections, we could face additional budget shortfalls next year. A more prudent course would be to assume little or no revenue growth in the upcoming fiscal year and adjust state spending accordingly.

As Norm at TQ put it:

Four percent growth next year? Either the Governor’s office has hired Dr. Pangloss to conduct its economic forecasts or crack chart reader Jody Wagner is back on the payroll.

Ouch!

Tim Kaine probably figured that the special session was an aberration, that he could once again cut the GOP in two over a tax increase.  So far, he’s been proven wrong – and that’s very good news.