Note from Dan: After decades of twiddling its thumbs over transportation funding, Gov. Bob McDonnell and the Virginia General Assembly enacted a very flawed but necessary transportation funding scheme this year. It increases the general sales tax and bunch of other taxes and fees on fuel and vehicles. It does away with the per-gallon tax but replaces it will new wholesale taxes. Instead they should have increased the per-gallon tax and indexed it. Here’s the last big scheme Gob. Bob put forth, from a column that originally ran Sept. 9, 2010.
Gov. Bob McDonnell was unequivocal in his January State of the Commonwealth speech:
“We will not turn our economy around by taxing Virginians more. … Therefore, if you pass a bill in this recession that raises taxes on the hardworking families of Virginia, I will veto it. And if you pass a budget embedded with those same tax increases, I will not approve it.”
Now McDonnell seems to have changed his tune when it comes to privatizing Virginia’s state-controlled liquor industry.
Although his administration took pains to deny it at an announcement Wednesday, the various levies McDonnell is proposing as part of his complex privatization plan look, sound and act like new taxes. Read more »