McDonnell Plan Cuts Gas Tax, Raises Sales Tax
Virginia governor's proposed $3.1 billion transportation overhaul gives higher percentage of sales tax to projects, leaves tax on diesel in tact.
By Mark Robinson, Capital News Service RICHMOND – With the General Assembly set to convene, Gov. Bob McDonnell proposed Tuesday increasing Virginia’s sales tax and abolishing its nearly 27-year-old gas tax, making Virginia the first state in the country to do so. The measures are a part of the governor’s proposed $3.1 billion plan to fund improvements to Virginia’s transportation system over the next five years. The funds would supplement $14 billion of transportation projects already under way in the commonwealth, the most in Virginia’s history. “Declining funds for infrastructure maintenance, stagnant motor fuels tax revenues, increased demand for transit and passenger rail and the growing cost of major infrastructure projects …
Laura
10:01 am on Tuesday, January 29, 2013
the plan to increase sales tax to make up for dropping the gas tax is regressive. People still have to buy food & clothing, and our lower-income families are going to be hit harder. Let the people who use the roads pay for the roads - that is what the gas tax does. more ›