A smart fix for Virginia roads
A state senator is proposing a 5 percent increase in the wholesale gasoline tax as part of a comprehensive plan that includes tax relief for the poor.
The road ahead is long and difficult, riddled with potholes and marked by detours that lead nowhere. Any and all truisms that warn against excessive hope surely apply.
But still. State Sen. John Watkins has let a serious proposal to fund Virginia’s transportation system out on the street — and House leaders have not deemed it immediate road kill.
November 21, 2012 - 6:20 AM
Let’s see. Watkins wants to raise the gas tax because he wants to increase revenue but then lower income taxes so he can decrease revenue.
Maybe he should pick an approach that doesn’t argue with itself.
Is not the gas tax targeted and the general revenue not? Does not the general revenue now give money to VDOT that they would not then have to?
Yes, the gas tax is earmarked for transportation needs, while income taxes go into the general fund for public schools and colleges, health care programs, state police, prisons, etc. A portion of the sales tax, which is traditionally a general fund revenue, is earmarked for transportation as well and has been since the Baliles administration.
Watkins is adjusting the income tax for low income individuals because the gas tax is regressive, and low income people don’t really have a way to avoid paying the higher cost in order to be able to get to work.
Thanks Christina!
Correct me if I’m wrong, Christina, but technically wouldn’t his proposal cut the income tax for everyone? Watkins wants to cut the lowest marginal rates (up to $17,000) and keep the rate the same above that. So even people who earn more would still get a break on their first $17,000 of income. It’s just that that would be more meaningful to low-income filers because it represents a larger portion of their total income.
So lets see take from the haves and give to the have nots again…This has got to stop…Raise the sales tax 1% and it will hit anyone that buys. This will not draw lines in the sand.
Yes, Christian, that is how the income tax works. The 5.75 percent rate would be reduced on the first $17,000 of adjusted gross income. Watkins would make up the lost revenue for general operations by expanding the sales tax to cover auto repairs, car washes and certain other services.
So when the poor go to get their old cars fixed, they will pay more. This sounds more like a carnival gimmick than a revenue plan.
While I am sure it is easy for some to say let the “have nots” pay more too, it is still a reality of life that making their lives harder so you can feel better is just not going to be a goal of any legislature looking for revenue.
It might be a “gimmicky” way to raise the needed revenue, and I am sure it will not be popular, but I doubt any plan would be. Do you want us to stop building roads and replacing bridges? Something has to give and the price of steel and asphalt is not going to be it.
I can’t understand our Virginia Government. Every time they say they don’t have the money to repair our roads they start working on them. They have been repaving 460 all this week. What they need to do is find the money to buy some lawnmowers. Every summer they let the grass grow until it looks terrible. Of course we would be fined if we did this. I think the best place to start is get a new Governor.
I am opposed to raising any taxes. One can argue the “need” but does that “arguement” ever end?
State tax revenues should go into a general fund, from there dispersed to legislated budgets.
State taxes should strive to be progressive, i.e., primarily graduated income tax, very low but also progressive, capital gains & inheritance taxes.
The latter are already taxed at least once and anything beyond 0-5% (progressively) is detrimental to investment and family/small/farm businesses.
Once again the key should be to enhance & grow the tax base. Regressive taxes on those less fortunate and/or duplicate & repressive to others produces (at best) some short term revenue, but does not address the long term need. Thus the need to keep increasing regressive/repressive short term fixes.
#11 “Once again the key should be to enhance & grow the tax base.”
You keep harping on that, Jim, but has that ever been proven to work? If so, please provide definitive proof.
Once again (now it’s MY turn to say that) America’s highest rates of economic growth came when the America’s richest 2% paid far higher marginal tax rates than they do now. Look it up.
“I am opposed to raising any taxes.”
Of course you are. Republicans have long been fans of borrowing from China to finance their wars.
When this economic crunch is long behind us and we have enhanced and grown the tax base, then we can always consider lowering taxes. Virginia and the nation needs to get real about the money needed and where it is in addition to making the needed cuts and sacrifices. It has to be a two pronged solution, more revenue and smart spending.
Virginia’s unemployment is lower than the national number and we also have many lower wage jobs in the service/tourism industry, growing the tax base will be a long slow slog. Can we afford to wait?
#12 2×3 > 2×2.
6-4=2.
2×5=10.
Steven, do require more proof?
#13 Is China owned by G.E. (or Westinghouse)?
Art, IMO your posts need a photo op. Sort of like Obama (before the election) & Sandy.
With credit & apologies to Mr. Simon; “I need a photo opportunity, I need a shot at redemption“
We certainly are in no short supply of posters who have needed redemption, but a photo op will not help the cause. The trouble with rubbing salt is that it reminds others to return the favor and eventually we are all hurting. Do you ever consider just letting something go?
#17 – “Do you ever consider just letting something go?”
I just spit coffee on my keyboard.