Senate Democrats: Raise Our Taxes or Else!
By D.J. Spiker | Saturday, January 15th, 2011 | PoliticsIn the ongoing debate over transportation dollars, Governor Bob McDonnell expounded on his transportation plan, attempting to reassure skittish legislators. McDonnell today announced plans to allow Northern Virginia and Hampton Roads to keep a sliver of sales tax dollars for transportation projects.
While Senate Republicans are on board, including Virginia Beach State Senator Jeff McWaters who is the patron of the bill, Senate Democrats are repeating the very idea that cost them the Governor’s mansion in the first place:
“Tell him to send down a tax increase,” Senate Majority Leader Richard Saslaw said of McDonnell.
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Many Senate Democrats maintain that the only way to upgrade state roads is to invest new money in them through a gas tax increase or another source of dedicated new revenue.
Senate Democrats don’t have to look far for an opinion on their repetitious calls to raise taxes for transportation. They can just ask their colleague Creigh Deeds to see how well that worked out.
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Clowns to the left of me, jokers to the right...entrenched on the right as a member of the Establishment, proudly tattooed member of the Republican Party, bartender by trade serving both sides the libations needed to continue the debate and discourse. College student, ten years late, majoring in Public Policy and Administration with an eye to serving the conservative and Republican movement in the public or private sector. ducit amor patriae You can find D.J.on facebook, Twitter, or contact via email at gosport.conservative@gmail.com. You can find D.J.on facebook, Twitter, or contact via email at gosport.conservative@gmail.com.
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41 Responses to "Senate Democrats: Raise Our Taxes or Else!"
Bless the new spirit of candor that Obama has instilled in his fellow Dems nationwide even though he himself tries gamely to dissimulate. Either that or its ally ally oxen free for the loony left to come out and show themselves in all their splendor. For the past 30 years since the demise of the real Dems the gangster socialists played a pretty good game hiding in the old Dems uniforms. Now they have put on their shiny new clothes and rush to the mics to proclaim what we knew they really thought. Please keep it up. America will be the better for it.
I still can’t wrap my head around why the Democrats are so desperate for a gas tax increase. It’s weird. They literally have no other plan to fund transportation. Why they want to enact such a regressive tax, I have no idea.
Brian, perhaps the reason is that they can’t comprehend actually reducing total spending and doing away with less important social programs?
It seems that many politicians believe their “job” is to grow the size of government and to buy votes by increasing spending to pander to targeted voting groups?
Apparently many do not appreciate what any private business owner understands – when revenues are down, you must cut expenses or go out of business.
When you have less money to spend then your “budget” dictates that you prioritize spending the money you have.
Money can’t buy you love but prostitutes sell something artificial by the hour.. and that is what we have in politics. When we send mediocre and downright greedy representatives to Richmond who spend tax money like a crack dealer we throw ourselves to the wolves.. there is nobody to blame for lousy results but an ill informed public who votes for it.
The Heritage Foundation put on a series for a summer camp I attended as a child that I will not forget. Conservatives seem far outnumbered among liberal educators and youth outreach and until this single issue changes we will continue to see the trends we see in government. Its the voter stupid.
Sounds to me like the Democrats would rather fund public broadcasting than build roads.
Call this the “Fixing Mark Warner’s Tax Increase” Act – since a portion of that should’ve gone for transportation all along.
In the field of public budgeting, an initiative without an offset is a liar and a thief. In this case, the initiative is $3,000,000,000 in borrowing for transportation, yet no offset was initially identified. That is, using existing sales tax revenue already designated for the general fund just cuts something else, and a responsible initiator shows integrity by telling us what will be cut. It is funding for schools, or libraries, or public safety, or the courts? What and how much will be cut from local government services to pay the debt service on the $3 B in new spending for transportation? Frankly, anyone who endorses this initiative without knowing the answers to the above questions is not acting responsibly. The latest article in the Pilot is simpy confusing, and the latest information I have is that the money comes from the share of the sales tax that goes directly to each city in which the purchase was made. So instead of providing a funding source, the Governor’s plan requires the Mayors/Chairman to cut schools, human services, public safety, and courts and justice in their communities in order to fund this initiative, and of course, they will still have to match the funding from other local sources. Further in agreeing to borrowing to be funded by future tolls, does that mean we are accepting the outrageous tolls on major projects? Frankly, until I have the facts, I can’t make a judgment, and anyone who considers themselves to be a fiscal conservative ought to do the same.
Mike’s giving advice to fiscal conservatives…Haw Haw Haw.
Never notice Mike worry about “facts” when he touts the tax increases he’s been pushing for a decade.
One side says raise taxes. The other says borrow more money. I’m hardly impressed with either.
I’m waiting for the discussion about how we can reduce the exploding entitlement spending we’re burdened with so we could then afford to manage transportation with the savings. If we can’t get entitlements under control, neither new taxes nor borrowing are going to solve the problem.
Virginia’s gas tax is 19.5 cents per gallon – only 10 states have a lower rate: Wyoming, South Carolina, Oklahoma, New Jersey, New Mexico, Missouri, Mississippi, Georgia, Arizona and Alaska. Our neighbor states rates are: MD -23.5¢; NC -30.2¢; W.VA -32.9¢; DC -23.5¢; NJ -14.5¢. New Jersey’s Transportation Trust fund goes bankrupt in March; selling off state assets, reviving vehicle registration surcharges, fees on heavy trucks, and raising NJ gas tax are all under consideration. A 4¢ gas-tax increase will not rock my world, change driving habits, or significantly impact cost of goods.
On toll roads ~ In 1785 Thomas Jefferson (in his “Notes on the State of Virginia”) wrote, “…If the stream be such as to require a bridge of regular workmanship, the county employs workmen to build it at the expense of the whole county. If it be too great for the county, application is made to the General Assembly, who authorizes individuals to build it and to take a fixed toll from all passengers, or gives sanction to such other propositions as to them appear reasonable. Ferries are admitted only at such places as are particularly pointed out by law, and the rates of ferriage are fixed.” In 1785, most Virginia counties were financially wrecked by Revolutionary War costs – we’ve historically used tolls to fund needed (but costly) road construction since.
On borrowing ~ While interest rates remain next to zero, it makes complete fiscal (and business) sense to finance needed new road construction.
What I can’t wrap my head around is why neither side will consider (or admit) the best solution (politically and fiscally) is likely a mix of tolls, modest gas tax increase, and bond sales.
You must pay for everything in this world, one way or another. There is nothing free, except the grace of God.- Mattie Ross/ True Grit 2010
Well Brian, I guess I thought the fiscal conservative position was that the users of the transportation system should pay for it, and of course, this proposal takes the money going to each city for general government services like schools, police, human services, and courts and justice, with no replacement, of course, to fund the debt service for transportation. So what happened to user fees, the foundation of fiscal past conservative policy?
OK, here’s a few thoughts.
Break open an up-to-date map of Virginia highways and take a close look at Lynchburg. Now ask yourself why itty-bitty Lynchburg got all those freeways, but when we need improvements in the areas where most the fuel taxes are paid, suddenly the answer is tollways?
Please realize that if Hampton Roads improvements are tollways, the fuel taxes we pay will continue to go towards areas like Lynchburg. You will pay the toll for the roadway you travel on and the fuel tax you pay will go to areas like Lynchburg. We will get the tollways, and they will get the freeways.
How about dedicating the fuel taxes paid towards maintenance and construction in the areas where they are collected? If we are going to put tolls in place, I suggest we start with Lynchburg since that area has benefited most, per capita, from recent construction.
I think we need to scrap the gas tax and hit the reset button, and I’m open to new ideas. Revenue from the gas tax is down 22% to state coffers. With more and more hybrids hitting the road and plugins coming, increased CAFE standards and rising oil prices we have to do something.
Just rename it the “Patriots tax” and everyone can change their minds about it, like the Third Crossing.
According to LD’s logic if we get tolls then our gas tax pays for Lynchburg and tolls pay for our new construction.
The idea being if we raise the gas tax, all of Va pays and not just the user of new construction in our area. Good point and certainly something to think about. Which makes me like McDonnell’s idea to let us and NOVA keep a portion of our locally generated tax for transportation. In effect prioritizing the General Fund since the rest of Viriginia and special interests are content to rob us blind and not provide transportation money for needed improvents. Hampton Roads is one of the areas generating more revenue than most, and I believe the most populous area. If we are nearing an “emergency transportation” situation that threatens local fiscal and thus state fiscal health, THE STATE NEEDS TO FUND OUR ROADS even if that means dedicating a portion of taxes to maintain roads and temporary short term redirection of state funds to our area for major projects. Even though temporarily, we take money from the general fund.
Although tolling a brand new road way not existing previously makes sense still. If the rest of the state is intent on destroying an area that GIVES THEM more revenue, maybe we need to frame the question for all those other state senators and delegate.
Either fund our needed improvements or lose state revenue from our decline. Fund our needs that you OWE with temporary redirection of assets or raise taxes on all Virigians permananetly with a gas and income tax increase an we will make the effort to tell the entire Commonwealth just which state senators/congressmen are responsible for robbing their wallets. Local cities should fund an advertising campaign. Letting the rest of the state know what they let happen and why the
………continued……..their taxes got raised.
I miss the edit feature.
I’ll have to push the like button on Jay D. Even with our deep water ports, why would any major corporation move their headquarters here to Hampton Roads with the gridlock?
Our transportation problem is at critical mass and it’s costing us jobs and revenue we could be creating.
Yes Kathy, it is costing us jobs, but that impact is not limited to Hampton Roads. The latest fiscal impact study of the Port of Virginia claimed that one in eight jobs in the Commonwealth has a direct or indirect nexus to the operation of the Port of Virginia. So in essence, this Governor is asking us to forfeit money we receive from the the local share of the sales tax to pay for roads which benefit the entire Commonwealth of Virginia. Frankly, if we agree to this shift of financial responsibility, how will we be shaken down the next time? Won’t take much.
This problem has been a problem way before “this Governor” Mike. Let’s take the axe out and talk about solutions in a bi-partisan way. It effects all of us.
In that case, we should call it “Portriots Crossing”
I agree Kathy; gridlock is a real economic development downer. And we should be asking legislators to set aside D/R labels, roll up sleeves, and churn out a long overdue, long-term solution to transportation funding. Here’s my case FOR including a gas tax increase (last adjusted in 1986/87) in that solution:
In 1986:
- Avg. fuel economy for cars: 17.4 mpg
- Avg. fuel consumption for cars: 543 gallons per year
- Avg. miles driven: 9,464 per year
- Gallons consumed per 100 miles: 5.747
- VA gas tax per 100 miles driven: $1.006
- VA gas tax collected per driver per year: $95.208
- Tax per mile driven: $0.01006
In 2008:
- Avg. fuel economy for cars: 22.6 mpg
- Avg. fuel consumption for cars: 522 gallons per year
- Avg. miles driven: 11,788 per year
- Gallons consumed per 100 miles: 4.425
- VA gas tax per 100 miles driven: $0.774
- VA gas tax collected per driver per year: $91.239
- Tax per mile driven: $0.00774
Virginians’ 2008 tax bill was 70% (per mile) of what we paid in ’86. After adjusting for inflation, it’s actually 50% LESS than 1986. To get to equal-to-’86-levels, Virginians should be paying 34¢/gallon.
In the ’80s approx. 1/2 of road construction costs were funded by the gas tax; today it’s 14% and, according to Delegate Watts, “We are inches away from not being able to match federal funds.”
Am I suggesting 34¢/gal? No. However, and let’s get real – 10¢ more won’t topple our economy, slow or growth, or have any real significant impact on citizens. On average, car drivers would pay an extra $52/ year … $4.35/month … 44¢ per 100 miles … $1.76 per fill-up. I think we’ll all survive.
In 2007, approx. 4 mil cars and 2.5 mil trucks & buses were registered in VA; 10¢ increase could produce an added $338 million per year. Matched by fed funds (80/20), my extra $1.76 /week could fund more than $1.3 billion PER YEAR of new construction and road maintenance.
Governor Bob promised to deliver a ‘comprehensive’ transportation solution during his campaign. We should be signaling our Republican friends in Richmond it’s OK to consider a moderate gas tax (10¢) as part of a multi-faceted, long term plan.
Even if it’s five cents it will go a long way. By the way, I am still a conservative, I just know you have to pay for what you need and the price will only go up. Not just in materials but in lost jobs and revenue from new business.
Mike explain to me how the Governor is asking us to forego our share of sales tax. It was my understanding that we are not getting our share to begin with and the Governor recently suggested that Hampton Roads and Northern Virginia be allowed to KEEP a percentage that we weren’t already getting. Itg was my impression that your criticism should be that the governor is robbing the General Fund in order to pay for our needs.
Jay D & Kathy I see your points on the gas tax but if you make the hard move and fund with a gas tax iincrease, you will be stuck with a repeat when the value of that tax goes down. Further, ok fine you raised more money and…………..
My point is with what ever money Virginia raises, they spend it! And not on OUR ROADS. So tell me. After we raise taxes on everybody that drives, what “lock box” to you propse to make sure Hampton Roads specifically gets more money. How do you account for a possible loss of consumption if increased driving costs mean they buy less because they have less money? Especially poorer workers driving to work everyday?
Well, 2011 is your chance, Mike.
Get a bunch of people to run for the House of Delegates on a platform of raising taxes.
When they win, you’ll get what you want.
@Kathy – ditto that!
Also, one last related point on GARVEES (Grant Anticipation Revenue Vehicles) that the plan intends to use to fund transportation debt service related costs:
GARVEES are based on anticipated payment of future highway funds. It’s a relatively new mechanism to pay for today’s roads … with tomorrow’s dollars.
-They do not guarantee the Fed will provide the expected financing.
-They are not guaranteed by the Federal government.
The ‘anticipated revenue’ comes from the Federal Highway Trust Fund’s fed tax gas revenues.
My question is: Since a GARVEE bond’s foundation is the expectation that the bonds will receive future grants from the highway trust fund. What happens if/when the FHA cuts back on funding? or Congress decides NOT to authorize new transportation funds?
In 2008 Reuters reported: “In almost every instance, states have entered into GARVEE borrowing programs with the knowledge that the existing funding paradigm was unsustainable,” Fitch said in a report underlining the risks bondholders face. The $8 billion deposit the federal government made in September to the highway trust fund, which has been taking in less revenue because higher gas prices have slashed driving, will enable the states’ transportation departments to resume normal billing, Fitch Ratings added.
3 years later (Jan 4, 2011), Bloomberg reports: – U.S. House Republicans voted to change the way highway funds are distributed, giving the Appropriations Committee the right to halt spending for highway repairs and construction. The rule is meant to keep the Highway Trust Fund from spending more than it’s bringing in, Brendan Buck, a spokesman for the Republicans that proposed the change, said in an e-mail. The rule also prohibits money collected from the federal gas tax from being spent for anything other than transportation projects, he said.
@Britt – appears that Republicans in Congress are ‘locking’ up Highway Trust Funds. Virginia could do the same – prohibit money collected from the state gas tax from being spent on anything other than transportation projects.
Regarding the “poorer worker driving to work”…Using averages above, let’s assume this worker’s car holds 17.7 gallons – he will spend without a tax increase $53.10 to fill up his tank (unleaded is running above $3/gal today.) Add 10 cents more per gallon, he spends $54.87 for the same fill up. I’m sorry, but when you look at actual numbers, this argument just gets silly.
Britt, whatever money is raised should go ONLY to transportation and I agree, the lawmakers need to stop spending money on their favorite pet projects and localities and pay attention to the largest area in Virginia in population and military presence. What happens if the Navy decides it wants to no longer think this is a viable area because of the transportation issue? Business is business even for the military.
Yes, now is a great time to get low interest rates, but why is it more conservative to borrow money and be in debt than raise the sales tax slightly, and dedicate the monies only to transportation. Can anyone explain to me why debt is better than paying for it?
If we can solve the transportation problem here in Hampton Roads there may be fewer poor people because I am convinced we will see more jobs. Poorer workers driving to work everyday can afford another few cents per gallon. If we have a major hurricane here, they’ll be thankful for another crossing. I know I will.
Jay D, better protect funds by Constitutional amendment. Just passing a law that the lawmakers can just change someday ain’t good enough.
Jay D & Kathy, ok, but how about we lock it up before we raise taxes? If we have to raise taxes.
Why does borrowing make sense rather than raise taxes. I just saw something about the state getting increased revenue lately. We might be at the beginning of a recovery. If that is the casel I might change my opinion. With no signs of recovery you can get funds without starving any chance of recovery. You can always tax more later, use revenue gains received due to a future recovery, or cut spending elsewhere at any time.
As for gas costs, guys…….that would be nice if you on.ly needed to fill your tank up once a month. I guess we could just say rural areas can suffer since we want the tax money for our area, everyone else can eat cake, right? Then there are those that can’t afford to live in Virginia Beach and must commute to work (or other areas of Hampton Roads).
I know people that have taken vacation days because they didn’t have money for gas. You two can be the ones to tell poorer people how much more they can spend on gas. You can be the ones to explain the logic of relying on an evaporating revenue stream.
To me it just makes sense to demand our fair share of tax revenue to pay for roads and tranportation projects. It also just makes sense to secure locked funds before raising taxes. Sure HRTA would have funds of course those funds would have come only from Hampton Roads and we STILL wouldn’t get our fair share. In fact any request from HamptonRoads for more money would just end in the GA saying,”no, you guys have HRTA, just have them raise YOUR taxes and keep your hands of of your fair share in the General Fund. I don’t see how you guys don’t realize that this area has been continuously scammed by the rest of the state. Our reps at state level really need a talking to.
Well Britt, out of the portion of sales tax revenue that already comes back to the locality in which the sale took place, this proposal would subract 1/4 of same to be used to help pay the new debt service issued for roads. Now this portion is already committed to the cities and counties, so not having that money, they will have to raise taxes or cut education, police and fire, human services, or courts and justice. So this is a pure transfer of general fund money already sent to localities, to pay for transportation. The responsibility to raise taxes to replace this transfer is left to local governing bodies. So if local governments accede to this, what’s next? Would the state want us to pay for electricity at the Capitol? Would they want local governments to pay for pay raises for Legislators? If they don’t have the courage of their convictions, why do we have a state government?
Thanks, Mike. If that is the case, then I have to agree with you. I was under an evidently incorrect understanding that the new proposal brought new money for transportation with mandated spending for transportation. If this is mandating current funds be directed differently, then I see that is a harm.
I would be more understanding of mandating current fund use if at least new state matching money was promised. Even if it was temporary situation and sunsetted at the completion of various projects. I’ll have to look into this more. Kinda disapointing, especially since he is from our area. Then again, he was a champion of HRTA.
@Brian – Delegate Vivian Watts apparently agrees with you. HJ572 proposes said constitutional amendment. Hmmm – no republican patrons; only democrats??
http://www.richmondsunlight.com/bill/2011/hj572/fulltext/
Yes, but what is amazing is the number of so called business associations who did not have a clue when they signed on to support this initiative how it was to be funded. Frankly, I don’t think 95% of our citizens know, first because the annonuncement was carefully crafted to obfuscate, and second, we are so desperate to fix our roads that people want action and appear willing to believe anything that appears to provide it. But what can a Governor do if the House won’t provide a revenue source. Really, just spin his wheels and appear to act.
Last week Delegate Howell (D-90) introduced HB1531, which increases state gas tax by 10¢ per gallon. The increase brings us up to almost 57% of what VA drivers paid 25 years ago. Seems reasonable to me. http://www.richmondsunlight.com/bill/2011/hb1531/
I hope Bearing Drift and the General Assembly will support passage.
Yes, and Mr. Purkey has also introduced a bill. But as already said by the Speaker, these bills are dead on arrival. Common sense left the Capitol a decade ago, and the result has been long terms for Delegates and the gradual destruction on our transportation infrastructure. To show the utter lack of awareness, in the Governor’s initiative, there is a proposal to “lock up” the transportation trust fund; point is, it is the General Fund that is now being robbed to fund transportation. And this time, it is local sales tax revenue that is being taken to fund new debt, putting K-12 and public safety at risk.
Jay D, she’d have to ask one.
Bottom line common sense: I’m glad Virginia is gaining jobs, but what should and could be the jewel of Virginia, Hampton Roads, is being treated like a step child when it comes to transportation money. We will continue to see a decline instead of increase of jobs until focus on Hampton Roads is taken seriously by our elected officials in Richmond. I am very concerned about the military and government presence receding. We need to be forward thinking immediately. Lawmakers need to start working together too. As of yesterday.
Of course the broader question is, can a politician be elected in Virginia who has the integrity to tell the truth; that is, with our transportation infrastructure crumbling around the Commonwealth, we need new revenue to fund maintenance, repair, and construction. With so many willing to deny this, perhaps we really do need bridge collapses, tunnel flooding, and potholes all around the state. Wait, we’ve had that already!
@Brian – fair point!
@Mike – Unfortunately, for legislators sitting on the Republican side of the aisle, ANY vote to raise ANY tax is a great start – to losing your next election! Politicians will change when people change. As long as we demand (or tolerate) that candidates sign ignorant “will not vote to raise taxes” pledges, it will be what it is. We’ll fix the potholes and bridges eventually, but not with new tax revenue. Change and integrity begins with voters, not politicians.
Either that, or the condition gets so bad “the Delegates look incompetent” which is what Bob Tata said in committee yesterday in discussing this issue. Are we at that tipping point? We are in Hanmpton Roads and NorVa.
Mike has a problem. Even Democrats are afraid to run supporting tax increases, but all Mike complains about is Republicans.
Hint, Mike. When both parties are rejecting your ideas, you’re in a bit of trouble.
You’re a uniter, Mike! No one agrees with you.
Well Brian, I guess you missed the headline of this post. There are responsible members of both parties who have advocated for an increase in the fuels tax, and they have been reelected as well. It does take courage to tell the truth, but in the end, it usually comes to that to get the right things done.
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