A month after signing the largest tax increase in Virginia's 400 year history, the Virginia Governor Mark "I will not raise taxes, I will not raise taxes, I will not raise taxes" Warner announced we were actually running a budget surplus of more than $300 Million. We are also expected to run an even larger budget surplus for the this fiscal year which started July 1st. After much criticism, Warner announced that he will accelerate the planned increase in personal exemptions.

Addressing a joint meeting of the General Assembly's powerful committees responsible for crafting the state budget, Warner said that the commonwealth's $324 million surplus -- which is fueled by higher- than-expected tax collections during the latter part of the fiscal year -- allowed him to begin the break Jan. 1, 2005, instead of a year later.

This change will provide each family of four with $400 of income free from state income tax, beginning with paychecks they receive in January," Warner told a packed room of lawmakers, lobbyists and state officials at the morning meeting.

That means a family of four will get $400, right? Well, no. It means that a family of four will get to deduct $400 off their Virginia income tax return. Assuming Virginia's highest tax rate of 5.75%, that would mean a tax cut of $23 for that family of four. Your's truly stands to haul in an extra $5.75

I cannot wait until Warner and his tax and spend cronies start selling this as a tax cut.