The Tax Foundation advises all three candidates for governor to think comprehensively about tax reform.
All three candidates for governor this year want to tinker with tax laws, but are they prepared to tackle the more difficult task of comprehensive reform? A thought-provoking analysis from the conservative-leaning Tax Foundation this week challenges the would-be governors to think more broadly about Virginia’s tax problems and potential solutions.
Republican Ken Cuccinelli wants to eliminate or cut three local business taxes: the Business, Professional and Occupational Licensing tax; the machinery and tools levy and the merchants’ capital tax. He would also lower individual and corporate income taxes. Democrat Terry McAuliffe proposes to give local governments the option to end or reduce business taxes. Libertarian Robert Sarvis favors an end to the three local business taxes and perhaps even the individual income tax, which represents two-thirds of the state’s general operating budget. He would end tax credits and deductions to make up a portion of those revenues.