Jim Gilmore on Tax Reform Senate challenger 2008; previously Republican Governor (VA)

Bush did the right thing with cutting taxes

A: I think the president did the right thing when he cut taxes for people in this country. He created a good economy. We are still enjoying the benefits of that economy today. I think there are some other places that I would like to do some things a bit differently.

Q: Like what?

A: Well, for one thing, I think that we need to be focusing a great deal upon energy independence.

Alternative minimum tax drives people into higher brackets

A: I've been a governor of Virginia. I ran on a tax cut proposal, and I ran on eliminating the car tax in Virginia. I received terrific opposition. I kept my promise, and we eliminated that car tax. Now, the question is, who is actually going to do what they say they're going to do? I have actually lived up to my word. The alternative minimum tax is continuing to drive people in the middle class into higher and higher tax brackets.

Control spending, or higher taxes are certain

A: This is the heart of the campaign: We have to control spending, or higher taxes are certain. Tax cuts put more money back into the control of families trying to make ends meet and take of their children.

Studied FairTax & flat tax, but still undecided on approach

A: I have studied the fair tax and the flat tax. I have not decided the best approach to empowering people through tax reform. Many Americans fear that we will institute the fair tax, and still keep the income tax. We will determine the best policy, and get started to help taxpayers.

Holding the line on taxes is best for regular people

A: In fact, I had to struggle against Democrats AND Republicans. Holding the line is best for regular people. We must drive this point home.

Always followed a program of reducing taxes where possible

A: The issue is not whether we pay taxes, but how much in taxes, what kind of taxes, and for what purpose. My tax cut program in Virginia is intended to help individual working men and women have a better quality of life and more control over their own budgets. Government is about setting priorities. Medicaid programs and homeland defense are both very important and should be a first call on tax dollars. I always followed a program of reducing taxes where possible and minimizing the impact of program reductions. The current elected officials are responsible for the choices they make in budget reductions just as I was responsible when I was Governor.

End the Car Tax

The car tax cut is about people and principle. The car tax may not be a heavy burden to some Virginians. But many Virginians, one or two hundred dollars makes a real difference in their lives.

[And] the principle: People have grown cynical about government. We overwhelmingly enacted this together and most of us have campaigned on it. Together, let’s keep the trust of the people. I ask you to support the car tax cut not only because it was a campaign promise, but also because it makes a real difference in the lives of the people we serve. Even though our budget may be tight, I ask you to make the people and their priorities your priority.

No national sales tax or VAT.

State tax policy is closely linked to federal policy. 36 states currently use either federal income or federal tax liability as the state tax base for personal income taxes. It is critical that Congress and the administration do not enact tax reform in a vacuum, but in consultation and in partnership with the nation’s Governors.
• National Sales or Value-Added Tax The nation’s Governors oppose a national sales or transactional value-added tax. Such taxes would intrude into a tax area that has traditionally been reserved for and relied on by state and local governments. If enacted, either of these taxes would seriously threaten the ability of state and local governments to maintain their tax base.
• Current Income Tax If Congress decides to reform the current tax system, they should reduce the complexity of current income taxes; increase incentives to work, save, and invest; and increase efficiency and fairness. As part of any reform of the current income tax, the nation’s Governors would oppose any modification to the deductibility of state income taxes, property taxes, and the interest on state and local bonds.
• Transition If major tax reform is enacted, it should not be implemented for at least three years, to give states ample time to adjust their own tax systems.
• Information Needs of the StatesThe ability of states to tax various revenue sources depends to a large extent on information that only the federal government can collect. This is becoming much more important given the complexity of both the international and domestic economies in tracing where goods and income are generated. It is critical that the federal government separate tax reform per se from the information that is collected from individuals, businesses, and corporations with respect to income generated. The data collection role of the federal government must be developed in partnership with state and local governments.