GOP to Kaine: Don't increase taxes

RICHMOND - Conservative legislative leaders sent Gov. Timothy M. Kaine a letter Friday warning him not to end some tax breaks in the budget he submits next week.

The five leaders wrote that a tax increase would be "counterproductive at the very least."

Their admonition to Kaine, chairman of the Democratic National Committee, comes after Republican Bob McDonnell won last month's gubernatorial election in a landslide over Democrat R. Creigh Deeds, pacing a Republican sweep of all three statewide offices and a net gain of six House seats.

It also underscores a message by McDonnell during his campaign that any tax increase used to reconcile a nearly $4 billion anticipated shortfall in the next budget would be rejected.

The four Republicans — Lt. Gov. Bill Bolling, Sens. Thomas K. Norment of James City County and William Wampler of Bristol, and House Speaker William J. Howell — and House Appropriations Committee Chairman Lacey Putney, an independent from Bedford, noted McDonnell's position in their letter.

Kaine has said he is considering eliminating some antiquated or costly tax exemptions and credits. He said last week he will propose eliminating the "dealer discount," a sliver of the state sales tax that retailers keep for collecting and remitting the state tax.

Since his election, McDonnell has stopped short of telling Kaine how to construct the budget he presents to House and Senate money committees. But Kaine turns the office over to McDonnell at noon on Jan. 16, and McDonnell has clearly said he will revise Kaine's budget if necessary to eliminate anything he views as a tax increase.