THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, April 21, 1995                 TAG: 9504210033
SECTION: FRONT                    PAGE: A16  EDITION: FINAL 
TYPE: Editorial 
                                             LENGTH: Short :   49 lines

VIRGINIA'S TAX BURDEN IS AT THE LOW END THE PROBLEM IS FEDERAL

Each year at tax time, the nonprofit, nonpartisan Tax Foundation publishes a comparison of the tax burden by state. This year, it shows Virginia to be less heavily taxed than many states.

The Old Dominion placed 35th in overall tax burden: federal, state and local. And when ranked according to the percent of income going to pay state and local taxes, Virginia places even lower, at 41st. Low, but not among the least taxing states of all to inhabit.

Some would argue that the state that taxes least is best. But Virginia would be foolish to aspire to join the few states below it in total tax burden. Just look at the company we'd be keeping.

Alaska is 50th, but it's a truly special case. Because fees on oil drilling support state government, other taxation is not needed. But consider the rest of the states at the bottom of the heap - Mississippi, Alabama, Missouri, South Carolina, Louisiana, Georgia, South Dakota.

These are by and large poor states with inadequate infrastructure, hampered by underperforming schools, not blessed with competitive colleges and universities, constantly struggling to attract business. Many envy Virginia's advantages. It would be a mistake for Virginia to attempt to sink to their level.

Of course, tax-cutting fervor has seized any number of governors across the nation, but most of those who have gained notoriety for slashing taxes weren't in low-tax states.

After heroic efforts, John Engler's Michigan is now 25th in tax burden. But William Weld's Massachusetts is still at the high end at 12th. Tommy Thompson's Wisconsin is 6th, and Christine Todd Whitman's New Jersey is 3rd.

Luckily, Virginians were never so outrageously overtaxed as residents of those states. Conversely, do we really want to join Mississippi, Louisiana and Alabama as a low-tax, no-amenity state? Judicious pruning rather than slash and burn should be what Virginia aims for.

On the federal level, the story is different. There, we spend $200 billion more a year than we take in. There, deep cuts in spending rather than taxes are necessary. Bulldozing to eliminate spending, root and branch, may be too extreme, but mere weed whacking isn't going to suffice. Cutting with vigor and precision is needed and will be welcome. When the federal government spends less, it may finally be able to cut taxes. by CNB