Democrats double-tax Hampton Roads
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Published June 26th, 2008
Sen. John Miller, Sen. Ralph Northam, Sen. Yvonne Miller, Sen. Louise Lucas.
These Democrats think fuel prices are so low that we in Hampton Roads should pay, not one, but TWO tax increases on gas!
SB 6009, which the Senate Democrats happily approved yesterday, raises taxes on gasoline statewide every year for the next six years (and statewide sales tax increase), and on top of that, slaps Hampton Roads drivers with a 1 % gas tax increase on top of that (and the 1% regional sales tax we voted down by referendum).
Somehow, “Double gas tax increases” didn’t quite make it into Democratic campaign mailpieces last year.
Double taxation? Isn’t the sale of gas also subject to sales tax? Locally wouldn’t that be four new taxes on gas?
Politicians realize that high gas prices yield higher food and goods prices. What they don’t seem to understand is that when they raise those taxes on transporting food and goods, that additional cost will be passed to the consumer. This type of taxation hits the poorest the hardest of all and the minute groceries tax relief won’t cover it.
Then again, this is great for big government. When people are starving in Hampton Roads it will beg for enhanced welfare, food stamps, homeless shelters, Section 8 supplements and social structures. When you can create the problem that you are hired to fix then business is good isn’t it?
I agree completely Britt. I seriously feel like crying.
Be careful Stephen, one of the bills the DEMS and their RINO allies in the Senate introduced during this session will includes a statewide tax on crying and an additional regional tax on crying for NORVA and Tidewater.
I am pretty sure that Virginia does not subject fuel to sales tax. Most states do not. Attempts to do so have been challenged in the courts as taxing interstate commerce. Recently, Wyoming defended the imposition of a sales tax on fuel in low level courts.
Truckers strongly object to paying sales tax on fuel in any state that are not refundable in accordance with the International Fuel Tax Agreement.
It is my opinion that an increase in the fuel tax is highly preferable to the BS “abusive driver penalties” and plans to make all the major highways in Virginia tollroads. I am in favor of Eisenhower’s freeways, not Senator Wagner’s tollways. The money has to come from somewhere, and a fuel tax is the fairest way of doing so. Those that use the roads most also use more fuel and pay more for construction and maintenance. The heavier the vehicle, or the payload hauled, the more damage to the roads. Heavier vehicles get less fuel mileage and thus pay more per mile for the distance traveled.
As a bonus, higher fuel taxes encourage fuel conservation and will help us break our addiction to foreign oil.
Perhaps Va exempts fuel from sales tax. I wouldn’t know. However, that point still doesn’t pass the basic logic test.
The truckers or anyone could object to a sales tax on fuel all they want. All the legislature has to do is CALL it a FUEL TAX. I’ll have to ask some private truckers if that addional fuel tax will be fairly returned to them via surcharges or if the companies will just pocket it. Secondly, IF the fuel tax is as you say “refundable” then those people you just pointed at as using it the most and getting poor gas milage don’t pay it and WE DO!!!! Where’s my damn refund! I’ll have to ask some gas station owners about the sales tax thing too.
I and most people agree with you that “Abusive Driver” fees were ridiculous. If anything it would cause young people to run from the police due to the $1,000 fine for going 20 over. 1K is enough to financially ruin a young adult and for what….going a just as fast on the interstate as everyone else? But, all that doesn’t mean the fuel tax is a good idea.
People choose between the high cost of housing in Va.Beach and the now high cost of a long commute. Further, as stated in my first post, that tax cost is passed to the consumer. The additional cost of transporting milk is paid by Jane Doe trying to feed her children, not Joe Shipping Company. If not interstate commerce then intrastate commerce. Seen the price of milk lately? When it comes to price tolerance, unintended cost transferance, taxing goods used by the less affluent that are hurt by the change more than the rich, and further contributing to inflation, you come to a point where a fuel tax reaches diminishing returns.
Tolls on new roads is very fair. It is the ultimate user fee. The gas tax will tax those that don’t even use the new roads. I do agree that tolls on paid for roads is a bad idea.
As far as user fees go……who benefits from these road projects? The ports! Who owns the ports? The STATE and I believe Del. Purkey has gone on record as not wanting to sell such an asset to private interests. That makes this a STATE issue not a Regional issue! Taxes as some proposed should be statewide. The suggested projects would do very little to relieve congestion. The HRTA and planning commissions have been outed on that by their own records. So why, should Hampton Roads residents get stuck with the bill? And you bring up an interesting point about trucking companies getting refunds on taxes. The road projects are for moving more trucks but, they get refunds on what they pay in taxes. What a damn scam! You can keep your fuel tax!!! You’ll only further damage the economy. We see who’s pockets are getting filled on this one.
Actually, I think Purkey is pushing privatization of the ports more than anyone.
Britt,
So you think the tolls paid by the trucker is not going to result in an increase in the cost of a gallon of milk for the consumer? Somehow the costs of the tolls are going to magically disappear from the gallon of milk?
The beauracracy to collect the fuel tax already exists. Increasing the fuel tax results in ZERO increased beauracracy. Creating a toll authority creates a new beauracrcy that siphons off some of the revenue collected to pay for additional manpower. Somebody has to be paid to stick their hand out at the tollbooth.
Brian, I know Purkey has been in favor of the studies. I read an article which I can’t seem to find now where “someone” thought the port was too valuable an asset to sell right now and would become more valuable. I tried searches to no avail. In the meantime, I retract and apologize for laying that quote on Del. Purkey. It was said but, now I’m not sure by whom.
Little David, yes the cost of milk would increase under tolls here in Virginia but, also outside of Virginia. Spread the pain. Secondly I’m not sure if there is a refund structure for tolls or not. Tolls by the way would also amount to a taxation of interstate commerce if you fully enforced the logic of your arguement saying we can’t subject gas to sales taxes. IF taxes on tolls are not refunded then at least the trucking companies would have to pay some of it and pass on the cost as they saw fit. If it is refunded like fuel taxes then it is not a true user fee and all costs are put on the localities and the state anyway.
Britt,
In accordance with the IFTA, truckers do not receive refund of taxes paid, they only receive refund for excess taxes paid.
The only state that allows for partial (not complete) credit to trucking companies for travelling on tollroads is New York. Virginia does not.
The argument that you make for the ability of truckers to pass on the cost of tolls also holds true for fuel taxes. Truckers do pay taxes.
However with tollroads truckers are motivated to take the most economically efficient route which might not be the tollroad. Instead of running on the brand new tollroad, they’ll skip the tolls and continue to add congestion to the alternative route. If the tax imposed on them is a fuel tax instead of a toll, due to IFTA they’ll be motivated to stick to the freeway.