Speak Out: Will McDonnell's Tax Plan Help Virginia?
Governor's five-year, $3.1 billion transportation overhaul aims to fund major road and infrastructure needs. Tell us: Do you think the governor's plan is a sustainable option for road maintenance and new projects?
Virginia residents could see a higher sales tax — and the state could become the first in the country to shed its gas tax — if a transportation plan unveiled by Virginia Gov. Bob McDonnell passes the state's General Assembly during its 2013 session.
The five-year, $3.1 billion transportation overhaul is the governor's attempt to address some of the state's major road and infrastructure needs in coming years; $14 billion in projects are already underway across Virginia.
McDonnell said the 17.5 cent tax on gasoline — which accounts for more than 30 percent of Virginia's transportation revenues — was "dated," blaming inflation and better mileage on the dollar for making it a stagnant funding source.
Raising sales tax from 5 to 5.8 percent, the other cornerstone of the governor's proposal, would generate more than $600 million in additional funds, he said, a pool that will grow with the economy.
McDonnell's changes would ultimately give transportation a larger share of sales tax revenues.
Read more here about the proposal, which the General Assembly will begin to review Wednesday as it begins its 2013 session.
The plan was McDonnell's attempt to appease both Republicans, many of whom have spoken against any kind of tax hike, and Democrats, who have said they don't want to give more general fund money to transportation over education and other state priorities.
Americans for Tax Reform has issued a statement against the governor's plan, saying the proposal "as it stands now fails in its goal to prioritize transportation spending while avoiding tax increases."
Lt. Gov. Bill Boiling (R), who holds the tie-breaking vote in Virginia's split senate, backed the plan Tuesday.
Tell us: Do you think the governor's plan is a sustainable option for road maintenance and new projects? Which state priorities do you think deserve more or less funding?
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Derek Zeller
8:43 am on Wednesday, January 9, 2013
LOVE THIS IDEA!!! We need to tax the RICH north part of the commonweaith for the benefit of the coommonwealth just like we raised rates on the 1% to pay for everything!!! This is AWESOME!!! People need gas and it will help with transport costs! GREAT IDEA!!!!
Dawn
3:27 pm on Thursday, March 7, 2013
I really don't understand this proposed plan. The gas tax makes sense going to transportation because (presumably) the majority of gas purchased is used for transportation. Why take this away just to then need to find another revenue source? Cars have become more efficient because of cost and regulation -- why reduce the cost of gas and [on top of that] tax alternative fuel vehicles? That seems to take Virginia back a step rather than forward. Raising the sales tax would effect us all a lot more. If the plan was for all sales tax on vehicles to go to transportation, well, that makes sense to me.