Largest Tax Increase in Va. history

[bucfan64 307]

Thoughts on the largest tax increase in Va. history? (me, I don't like it, proves McDonnell is a RINO)

 

Will this increase be worth it in the long run or is it something that could devastate our already fragile economy? (I think it will hurt our economy and not be the legacy that McDonnell expects it to be)

 

How will this impact McDonnell and his 2016 Presidential run? (it will be used against him and probably curtail his chances of any real success)

 

Do you agree or disagree with this measure? (totally disagree)

 

http://www.breitbart.com/Big-Government/2013/02/25/VA-Republicans-Agree-to-Largest-Tax-Increase-in-State-History

Edited February 26, 2013 by bucfan64

[Deleted Account 5,203]

Thoughts on the largest tax increase in Va. history?

 

Will this increase be worth it in the long run or is it something that could devastate our already fragile economy?

 

How will this impact McDonnell and his 2016 Presidential run?

 

Do you agree or disagree with this measure?

 

http://www.breitbart.com/Big-Government/2013/02/25/VA-Republicans-Agree-to-Largest-Tax-Increase-in-State-History

 

All kinds of "wrong" here.

 

First, Virginia's economy is nowhere near fragile. Virginia's economy is consistently a model to the rest of the nation. It is easily the best of any surrounding state, and probably the best one of any state not named "North Dakota". Virginia's one of the few states that doesn't have to bat an eyelash to make and meet a budget, either.

 

Second, Breitbart (as it always does) is making a mountain out of a molehill. The sales tax is jumping from 5% to 5.3%. DEATH, DOOM, AND DESTRUCTION TO ALL, amirite? Besides, that extra revenue is OFFSET by a $.14/gallon DECREASE in the price of gas, the sum total of which will be used to fix NOVA's hideous road system, along with other renovations by VDOT.

 

It's one of the few things the General Assembly did CORRECTLY this session...

[ThomasDenton 79]

All kinds of "wrong" here.

 

First, Virginia's economy is nowhere near fragile. Virginia's economy is consistently a model to the rest of the nation. It is easily the best of any surrounding state, and probably the best one of any state not named "North Dakota". Virginia's one of the few states that doesn't have to bat an eyelash to make and meet a budget, either.

 

Second, Breitbart (as it always does) is making a mountain out of a molehill. The sales tax is jumping from 5% to 5.3%. DEATH, DOOM, AND DESTRUCTION TO ALL, amirite? Besides, that extra revenue is OFFSET by a $.14/gallon DECREASE in the price of gas, the sum total of which will be used to fix NOVA's hideous road system, along with other renovations by VDOT.

 

It's one of the few things the General Assembly did CORRECTLY this session...

 

In the article I posted earlier about this, it said that the gas tax would go from $0.175/gallon to a 3.5% wholesale tax, not to $0.035/gallon. But anyway, I agree that Breitbart is just trying to cause panick here. I wouldn't mind at all paying 5.3% sales tax (still a whole lot lower than TN, lol) and it still brings gas prices down, if even by a little.

[GMan 3,569]

In the article I posted earlier about this, it said that the gas tax would go from $0.175/gallon to a 3.5% wholesale tax, not to $0.035/gallon.

 

True.

 

With gas at $4/gallon...tax would be $0.14/gallon. Once gas reaches $5/gallon, the tax/gallon is the same.

 

The State of Virginia pulled a quick one on math illiterates...and with the current education system, there are plenty of them...

[Deleted Account 5,203]

True.

 

With gas at $4/gallon...tax would be $0.14/gallon. Once gas reaches $5/gallon, the tax/gallon is the same.

 

The State of Virginia pulled a quick one on math illiterates...and with the current education system, there are plenty of them...

 

I wouldn't say "math illiterate". I overestimated the savings by not crunching the numbers on a calculator.

 

It's still a "saving". Gas in Virginia is not, and does not project to be over $4.00 in the short-term. At the current rate of ~$3.50/gallon, it translates to a smidgen over $.05 savings for unleaded. The pinch will be on diesel, where the 6% wholesale tax will outweigh the current tax by a about $.06 per gallon. That will have an effect, but not a painfully destructive one, down the streams of commerce. Which interestingly enough might bring more money (perhaps in the tens of thousands of dollars) into the coffers, with the incrementally-increased prices of goods.

 

But then again, I don't mind the new taxes much. Taxes are essential to a properly functioning economy.

[Hacker 82]

But then again, I don't mind the new taxes much. Taxes are essential to a properly functioning economy.

 

Sadly, many think they can get all the services they want and not pay taxes. Roads don't magically appear, nor do potholes get filled without cash. Sadly our elected officials, for varying reasons of party loyalty, have not done anything until now.

[Deleted Account 5,203]

Sadly, many think they can get all the services they want and not pay taxes. Roads don't magically appear, nor do potholes get filled without cash. Sadly our elected officials, for varying reasons of party loyalty, have not done anything until now.

 

It's a disheartening scenario.

 

I am literally fearful for the future of this nation when every tax increase is fought with vigor best reserved for Hollywood movies. Same with every spending cut. It's precisely why I thought all the hullabaloo over the "fiscal cliff" (and now with the "sequester") was preposterous: it's a step down the ONLY path toward getting the U.S. back on the track of fiscal responsibility.

 

We see Greece collapsing. We see the Euro and its existence in crisis. We see credit agencies, even those who have falsely inflated the U.S.'s ranking for some time, downgrading the U.S. rating. Yet it does...not...sink...in for people.

 

There are two possible fixes. One is for the American people to wise up and stop adhering to the two-party system. That clearly won't happen, because this nation is a nation of idiots. Two is for a president to have the gumption to say to Congress: "If you send any piece of legislation to me that cannot fully fund itself, I will veto it. I will continue vetoing your legislation until it gets the point across. I will not extend any tax cuts. I will not renew any existing spending measure unless there is a mechanism in place to fund it.

 

The problem there is that such a president is unelectable. Even if said candidate survived the primaries, the media would "Sarah Palin" the candidate into submission.

 

We are indeed a very broken nation.

[bucfan64 307]

All kinds of "wrong" here.

 

First, Virginia's economy is nowhere near fragile. Virginia's economy is consistently a model to the rest of the nation. It is easily the best of any surrounding state, and probably the best one of any state not named "North Dakota". Virginia's one of the few states that doesn't have to bat an eyelash to make and meet a budget, either.

 

Second, Breitbart (as it always does) is making a mountain out of a molehill. The sales tax is jumping from 5% to 5.3%. DEATH, DOOM, AND DESTRUCTION TO ALL, amirite? Besides, that extra revenue is OFFSET by a $.14/gallon DECREASE in the price of gas, the sum total of which will be used to fix NOVA's hideous road system, along with other renovations by VDOT.

 

It's one of the few things the General Assembly did CORRECTLY this session...

 

I was implying that the national economy was fragile, not the state economy, and that this "increase" could be negative publicity in the effect that it will undboutedly be championed by future Republican opponents as "the largest tax increase in Va. history."

 

I understand that this has been offset by other decreases. But, when election time rolls around and we are electing a new governor, this will be used to destroy any positive impact Gov. McDonnell will have on his legacy by the Dems. Inmy opinion, this is more of a "big legacy project," to be used as a talking point/braggin point in a few years, by a potential presidential candidate, which explains why I refer to McDonnell as a RINO. Spending is spending, even if cuts were made elsewhere to allow for this spending. It's sort of like saying we are gonna stop wasting money in this area, so we can spend it in another area. Once again, I don't have a problem with $ in more needed areas, but in the end, I believe that it will be used against him, after all he did say that he would not increase taxes while governor.

 

The measure includes

■Sales tax hike from 5 to 5.3 percent

■Additional sales tax hike of .7 percent in Hampton Roads and Northern Virginia

■Personal property tax hike from 3.5 percent to 4.3 percent

■Tangible personal property tax hike to 5 percent

■3 percent Northern Virginia hotel tax

■Diesel tax hike from 17.5 cents per gallon to 6 percent tax on wholesale diesel, roughly a 5 cent per gallon increase

■Car tax hike from 3 percent to 4 percent in 2013, 4.1 percent in 2014, 4.2 percent in 2015, and 4.3 percent in 2016 (Remember when Republicans got elected in Virginia by saying we should get rid of the car tax? Good times.)

 

This will hurt Cuccinelli in the long run, I almost guarantee it! Keep in mind that this measure was favorably endorsed by big govt. supporters Tim Kaine and Terry McAuliffe. Which appears to follow more of the Karl Rove approach of moving the Republicans more toward the left in an attempt to be more like the Democratic Party. I personally do not believe that the future success of the Republican Party is in becoming more like the Democratic party, I believe success, if any, will be found in providing a solid alternative to the big govt., big spending progressives.

 

With all this said, I have been somewhat pleased with McDonnell, but on this issue, I am upset.

[GMan 3,569]

Whoa!!! We always receive updates from the VA GA after they finish their session, providing info on what was "accomplished". We received the latest update today and I noticed one HUGE provision that no one has mentioned on here...

 

Cut and paste from the update...

 

-Internet Purchases. Uses a substantial portion of future sales tax proceeds generated from internet purchases (if Congress passes the Marketplace Equity Act) for transportation. If the Act fails to pass, an additional 1.6% tax will be applied to the wholesale gas tax.

 

If Congress does not pass the MEA, the wholesale tax on gas will be 5.1%, not the 3.5% they made it.

 

Tax on a $4 gallon of gas would then be $0.20, instead of the old $0.175/gallon gas tax. Meaning, we will be paying more at the pumps.

 

 

Here is the update in its entirety...

 

Capitol Briefings February 27, 2013

 

A summary of the 2013 General Assembly Session. These items reflect the Virginia Chamber's 2013 Legislative Priorities.

 

Virginia General Assembly Passes Historic Transportation Funding Bill

One of the Virginia Chamber's "Key Principles of Virginia's Blueprint for Success" is Infrastructure and Connectivity. This year, the Virginia Chamber outlined as a top priority the need for long-term, dedicated and sustainable funding to address the Commonwealth's critical infrastructure needs.

 

The Virginia General Assembly took a major step forward on Transportation funding this year by passing a historic package that will generate $880 million a year to address Virginia's critical transportation infrastructure needs. The plan will also ensure that we have a transportation system that serves our mobility needs and fosters economic growth and development. The transportation plan passed includes:

 

Gas tax. Replaces the 17.5 cents per gallon gas tax with a 3.5% wholesale tax paid by distributors and a 6% wholesale tax on diesel.

 

Sales tax. Increases the statewide sales tax on most items from 5% to 5.3%.

 

New car purchases. Raises the sales tax on motor vehicles from 3% to 4.3% and raises the minimum titling fee to $75.

 

Alternate-fuel vehicles. Creates an annual fee of $100 on alternative-fuel vehicles.

 

General fund. Increases the amoung of general fund money dedicated to fund transportation from 0.5% to 0.675% of the sales tax.

 

Internet Purchases. Uses a substantial portion of future sales tax proceeds generated from internet purchases (if Congress passes the Marketplace Equity Act) for transportation. If the Act fails to pass, an additional 1.6% tax will be applied to the wholesale gas tax.

 

Regional Funding. Creates a regional funding mechanism for Northern Virginia and Hampton Roads to fund transportation projects in those respective areas.

 

"This plan reflects a great deal of compromise between Democrats and Republicans in both the House and Senate," said Barry DuVal, President and CEO of the VA Chamber. "Although the plan does not contain one hundred percent of what either side hoped for, the compromise will greatly benefit the Commonwealth as a whole. I applaud members of the General Assembly for their willingness to advance this issue of importance to Virginia's business community."

 

 

Virginia Chamber's Tort Reform Package

 

One of the major components of the Virginia Chamber's 2013 Legislative Agenda is Tort Reform. We worked throughout the Summer and Fall with the Virginia Alliance for Tort Reform to develop systemic legal reforms which would improve the Commonwealth's economic competitiveness.

Virginia's business community scored an important win during the 2013 General Assembly Session with the passage of a tort reform package that enacts meaningful tort reform measures that will will lower the costs of litigation and improve the overall business climate. These measures include:

 

Depositions Used in Admissions and Summary Judgment Motions. Will allow depositions to be used to form the basis of admissions and summary judgment motions limited to non-DUI punitive damage parts of a claim. This is important because businesses are being subjected to punitive damage claims on an increasing basis - particularly as a pressure tactic related to other parts of a lawsuit. Depositions will now be allowed to knock out meritless punitive damage claims through summary judgment motions. Depositions will also be allowed to form the basis for Admissions. This will also help businesses defend against baseless and frivolous cases.

 

Venue Reform. Perhaps the most significant change will help businesses limit lawsuits in jurisdictions that do not have any meaningful connection to the cause of action. Under current Virginia law, companies can be sued in any locality they "regularly conduct substantial business." This means that even if an accident occurs in one county, a suit can be brought in a more plaintiff-friendly jurisdiction even if there is no connection to that location. With the proposed change, there must be a "practical nexus" - or meaningful connection - between where the lawsuit is filed and the cause of action.

 

Trespassing. Virginia common law says that property owners owe no duty of care to trespassers except in very limited circumstances. Legislation codifies Virginia common law and precludes efforts to change duty of care owed to trespassers.

 

Nonsuit. Provides that if notice to take a nonsuit is given to the opposing party during trial, the court may assess against the nonsuiting party reasonable witness fees and travel costs of expert witnesses

 

 

Education and Workforce Development

 

Virginia's economic well-being is inextricably linked to the education and skills of its citizens. The Virginia Chamber supports initiatives that better align educational development, beginning with early childhood education programs, and workforce training programs with the skill requirements and workforce needs of businesses.

 

To better compete in a global economy, the Virginia Chamber supported the following educational priorities during the 2013 General Assembly Session:

 

Worker Retraining Tax Credit. Will provide an increase in the Worker Retraining Tax Credit from $100 per year per employee to $200 per year per employee for regular retraining and $300 per year per employee if the worker retraining involves a STEM or STEAM (Science, Technology, Engineering or Applied Mathematics) discipline. Improve Teacher Performance. Establishes the Strategic Compensation Grant Initiative and Fund, which provides local school divisions with grants that may be used as incentives to improve teacher and school performance.

 

Early intervention services for reading and mathematics. Requires local school divisions to provide early intervention services to students in kindergarten through third grade who demonstrate deficiencies in reading and math. Teach for America. Help close the achievement gap among students in low-income areas by creating a two year provisional license for participants in Teach for America.

 

Budget amendments to fund initiatives to attract, recruit and retain individuals to teach STEM subjects.

 

Budget amendments to support early childhood development and readiness programs.

 

 

Medicaid Reform and Expansion

 

On Saturday, February 23rd, the General Assembly passed an $87 billion budget. Included in the Virginia budget is an amendment to reform and expand the Medicaid program. The Virginia Chamber supported reforming the Commonwealth's largest health insurance program and extending health care coverage to hundreds of thousands of uninsured Virginians.

 

Over the next five years, Virginia's citizens and businesses will be forced to pay taxes of more than $10.2 billion. In addition, health care providers, the most stable sector of our economy, will face $11.7 billion in Medicare reimbursement cuts. The taxes and cuts were intended by the Federal Affordable Care Act (ACA) to pay for Medicaid reform and coverage extension in the Commonwealth. If Virginia does not opt to extend coverage in Virginia, we will be subsidizing it in other states. The hidden tax for subsidizing uncompensated care in the Commonwealth is already borne by businesses as the primary purchaser of health insurance. By choosing not to reform Medicaid and extend coverage, Virginia businesses will bear this cost as well as subsidize care elsewhere. Reducing the number of uninsured will curb the cost shift to commercial insurance and thereby lower the insurance premiums paid by employers.

 

 

General Business

 

The following bills will have a positive impact on the business climate in VA:

 

Business One Stop Shop--Requires the State Corporation Commission (SCC) to integrate their online forms with the already established Virginia Business One Stop website. With Business One Stop, business owners can submit all their paperwork electronically, from permits to applications. This bill streamlines the process, allowing business owners to spend more time on their business instead of filling out paperwork.

 

Virginia Workforce Council--Expand the Virginia Workforce Council's scope of inquiry and recommendations to more broadly address the entire spectrum of workforce development.

 

 

Employment Law

 

HB1385 protects employees right to a secret ballot.

 

The VA Chamber worked to defeat both HB1729 and SB816. These bills would have created onerous record keeping requirements for employers.

 

 

Unemployment Insurance Reform

 

In 2012, the Virginia Chamber worked with the Virginia Employment Commission and the Commission on Unemployment Compensation to reform Virginia's unemployment insurance laws. As a result, in 2013, the General Assembly passed SB775 and SB776, making Virginia's unemployment insurance laws consistent with Federal requirements.

 

The passage of these bills saved Virginia businesses $1.4 billion.

 

Two-Term Governor

 

The Virginia Chamber included in its 2013 Legislative Agenda the position to support a constitutional amendment to allow Virginia Governors the opportunity to seek a second consecutive term.

 

Senator Tom Garrett carried our bill, SJ276, in the Senate. SJ276 would have allowed a Governor elected in 2017 and thereafter to succeed himself in office. The bill was PASSED by the Senate on Monday, January 28 on a 25-15 vote; however, the bill was killed in a House Privileges and Elections subcommittee.