Last week I asked you to contact Governor Bob McDonnell to urge him to keep his campaign promise and veto legislation that is one of the largest tax hikes in Virginia history. Thank you to those who emailed the governor and for those of you who have not yet had the opportunity, here is your second chance! Click here to contact the governor now and to ask him to keep his campaign promise and veto HB2313. Last week’s tax hike email has generated a lot of conversation between The Family Foundation and transportation tax hike proponents. The discussion has outlined tremendous confusion about the complex nature of the effects of the bill. Contributing to the problem has been a lack of transparency evidenced by the fact that the roughly 100-page conference report was not released to legislators until less than 48 hours prior to the vote, the conference report is still not available online to the public, and there is no publicly-posted Fiscal Impact Statement. The lack of transparency has led to debate over how much of the new or reallocated existing revenue will be directed to non-transportation use, whether funds will be restricted for transportation purposes in the future, and other critical concerns.
As a side note of correction, in the alert last week, we stated that according to the bill, if the Marketplace Equity Act does not pass, “the wholesale gas tax increase already in the bill nearly doubles.” The additional increase is actually 45%, not double. Regardless, the main principle is that if Governor McDonnell signs HB2313, it will be in the running for the largest tax hike ever in Virginia history.
Lest there be any room for misinterpretation, let me restate – Governor McDonnell’s signature on HB2313 would sign into law one of the largest tax increases on hardworking Virginia families in the entire history of the Commonwealth. We should be encouraging an atmosphere of financial stability for Virginia’s families which will drive job creation and economic growth, but instead we are preventing it. While building roads is good for economic growth, doing it by taking more out of our family’s spending power through higher taxes is harmful.
The details of this tax-and-spend bill are endless – I didn’t mention in the last alert the egregious personal property tax increase or the tax increase on purchasing a car or the higher tax you’ll pay on the sale of a home in Northern Virginia or the tax on vending machines and heavy equipment and hybrid cars and the list goes on. The more we learn, the less we like this complex and sweeping tax increase.
Tax hike proponents have been vocal expressing disdain for opponents who criticize but don’t offer solutions for funding the transportation problem. While critical of the tax hike, The Family Foundation cannot be accused of not offering solutions – watch your email inbox tomorrow for a practical solution that would provide more than sufficient funds to address the transportation problem.
Details aside, the bottom line is that Candidate McDonnell promised to not raise taxes. We need to remind Governor McDonnell of that promise.
ACTION: Contact Governor McDonnell and urge him to veto HB 2313 or we will end up with what may be the largest tax hike in Virginia history!