Va. House GOP Willing to Revoke Some Tax Breaks

[UpInArms]

http://www.washingtonpost.com/wp-dyn/articles/A40933-2004Feb13.html

RICHMOND, Feb. 13 -- Republican leaders in the House of Delegates offered a plan Friday to balance Virginia's budget by eliminating an array of business tax breaks, a proposal that startled Democrats, business leaders and lobbyists, many of whom have backed Gov. Mark R. Warner's plan for broader tax increases.

<snip>

The largest tax break targeted by the House is a sales tax exemption for Virginia's public service industries, such as electric, telephone, railroad and gas companies. The House estimates the break reduces state revenue by $175 million a year.

Another provision would take away from the airline industry a sales tax break worth an estimated $45 million a year on the purchase of equipment used for such tasks as baggage handling and ticketing.

<snip>

But Del. Phillip A. Hamilton (R-Newport News), the bill's sponsor, said: "We must determine whether certain industries should pay their fair share before asking all hardworking taxpayers and their families -- who do not receive such preferential tax treatment -- to bear a heavier burden."

...more...

[aquart]

1. I'm sorry, but... Was that common sense? From Republicans?

What on God's earth is happening, I wonder?

[mobuto]

2. From Virginia Republicans, no less

the position of the VA legislature has been that they would rather see Virginia destroyed - its schools and universities completely defunded, its roads ruined, etc. - than see a dime in new taxes. In fact they've insisted on cutting taxes. Their maximalist ideological fury has screwed over Virginia big time.

Lets hope this isn't a flash in a pan and they actually start working with the Governor to accomplish something.

[underpants]

3. I don't think they could deny Warner's plan

Not only does it *gasp* make sense but there is no way they can fight it and win politically. The fact that it actually cuts taxes for 65% of Virginians while making the top tier and businesses actually pay would be their death knell should they maintain their "no tax increases EVER" mantra.

They might also finally letting the people around here that they never did know what they were doing and were actually forcing more people to pay more taxes than they needed to.

BIG win for Warner and in turn Kaine.

[mobuto]

4. Well, I thought I understood what works politically in VA

until Northern Virginia screwed itself so badly by voting down Warner's sales tax referendum. A half-cent tax increase would have been a tiny price to pay for solving N. Va's transportation woes (and it has a great many of woes).

Kaine's a good man and will, with any luck, succeed Warner.