Check out Transportation Scam Part III
Originally posted on The right-wing liberal:
This afternoon, Governor Bob McDonnell proposed a transportation funding plan highlighted by the elimination of the gasoline tax. Despite that, the plan itself increases taxes overall – and is largely dependent on a federal tax hike bill that died in a House Committee last year.
There is sadly little good to say about the McDonnell proposal, so I’ll get that out of the way first: the proposal to increase the piece of the existing sales tax dedicated to transportation (from 0.5% to 0.75%) – projected to provide over $800 million for roads over the next five years – is a wise prioritization of our transportation network. Also, replacing the gas tax with a higher sales tax has its benefits, in theory in that it ties Virginia’s roads to economic activity in the state. That said…
The sales tax increase is too high, making it an overall tax increase: By the Governor’s own numbers, over half a billion dollars ($607M to be exact) will be taken from Virginians over the next five years.