
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, February 10, 1995                   TAG: 9502100044
SECTION: EDITORIAL                    PAGE: A-10   EDITION: METRO 
SOURCE: ARNOLD J. SAARI
DATELINE:                                 LENGTH: Medium

ALLEN DESERVES SUPPORT OF BUSINESS

ALL CITIZENS are familiar with taxes of one sort or another, but very few know what Tax Freedom Day is. That's the day of the year the average American starts working for himself. Earnings every day before Tax Freedom Day have gone to paying federal, state and local taxes. In 1994, Tax Freedom Day came on May 5, two days later than in 1993. The first 125 days of the past year went to the government.

In 1902, Tax Freedom Day was Jan. 31. But the gradual advancing of that day doesn't tell the whole story. Government has become much more clever over the years, and has discovered new ways of collecting taxes without raising them. It's called expanding the tax base.

The taxpayer now pays taxes in countless other forms - transfer taxes, sales taxes, license fees, property taxes, business and professional license taxes, merchants' capital taxes (inventory taxes), stamp duties, school taxes and fees, excise taxes, import duties, gas taxes and so on.

No wonder citizens have become more conservative and tax-conscious. As they accumulate more wisdom and experience with age, they begin to reflect upon the never-ending array of tax-collection devises, and become fearful of what lies ahead.

Gov. Allen's proposed tax cuts and attempts to slow down the expansion of state government are refreshing and long overdue. His total package of recommendations will no doubt be altered, but the heated debate will be healthy and long-lasting.

The governor has labeled the business, professional and occupational license (BPOL) tax, levied by some counties, cities and towns on gross receipts from sales and services, as a ``despised'' tax. Some local government officials seemed shocked at his choice of words. A few stated that they hadn't heard many complaints against BPOL from local business people. Evidently, they assumed that it's not a burning issue within the business community.

Local taxing authorities can be assured, however, that BPOL and the merchants' capital tax are more than despised by business people. These taxes are discussed and cussed regularly at business gatherings. Little effort has been made, however, to relay this feeling to local-government bodies.

Allen has heroically flushed out this issue, and it's time for business individuals and organizations to step forward to support his lead.

Government bodies are opposed to Allen's proposed repeal of BPOL, even though he proposes that localities would continue to receive the revenue lost from the repeal of the tax for five years and beyond. So what's the beef by local officials, other than resentment because the idea came from Richmond? Not only will localities continue to receive ``lost'' BPOL money from the state, but they'll reap additional revenue from recent property reassessments.

Finally, if Allen is daring enough to further support small businesses in Virginia, it's hoped that he'll recommend repealing the despised merchants' capital tax.

Arnold J. Saari of Blacksburg owns a business in downtown Blacksburg.

by CNB