Americans for Tax Reform President Grover Norquist yesterday sent a letter to Virginia candidates urging them to support repeal of Gov. Bob McDonnell’s transportation plan (HB 2313), which includes a $5.9 billion tax increase.
Norquist’s plea comes just days after McDonnell signed Virginia’s Road to the Future, the first comprehensive transportation law in a generation. McDonnell hailed the law as a “historic achievement” that would “improve Virginians’ quality of life.”
That’s not how Norquist sees it. His letter warns of the economic harm resulting from tax increases and highlights the additional threat posed by the Marketplace Fairness Act, which recently passed the U.S. Senate. The measure, known as the Internet sales tax, would subject online retailers in Virginia to collect taxes from the nearly 10,000 jurisdictions across the country.
Full text of the letter below:
Just a few days ago, Governor Bob McDonnell signed into law the largest tax increase in the history of the Commonwealth of Virginia. With a price tag of at least $5.9 billion, the tax hike will undeniably harm Virginia’s economy, meaning less money in taxpayers’ wallets and less jobs for Virginians seeking work. I urge all candidates for state-wide office and the House of Delegates to support the repeal of this onerous burden on taxpayers.
A coalition of spending interests and their political allies – including Governor Bob McDonnell, Speaker Bill Howell, Senate Majority Leader Tommy Norment, Senate Minority Leader Dick Saslaw, and Senator Frank Wagner – are working hard to fleece the taxpayers of Virginia. The repeal of HB 2313, Governor McDonnell’s tax hike, would send a message to Virginia voters and taxpayers that you are serious about protecting their interests, not the special interest spending lobby in Richmond.
With the tax hike now law, Virginians will see hikes in their diesel fuel taxes and the gas tax will rise with higher gas prices and inflation. Residents of Northern Virginia and Hampton Roads will see increases in the local sales tax from 5 to 6 percent and Northern Virginia will see additional increases in taxes on homes sales, and increased hotel taxes. The rest of the state will experience a sales tax hike from 5 to 5.3 percent. Eventually, every region of Virginia could be subject to a 6 percent sales hike.
In addition, the legislation puts into place a regime set to collect internet sales taxes if Congress passes the Marketplace Fairness Act – currently in the House of Representatives. If Congress is unable to pass an internet sales tax bill, Virginia residents will see fuel taxes raised even higher to make up for the promised tax collections. Even worse, the Marketplace Fairness Act would subject Virginia’s small businesses to over 9,000 taxing jurisdictions in all fifty states. Imagine a small business man from Virginia having to appear in a tax court in cash strapped California or Illinois.
In the end, Governor McDonnell’s tax hike is nothing more than a transfer of money from the taxpayers pocket to the spending interests in Richmond. The tax hike must be repealed.
This burdensome and economically destructive tax hike won’t relieve congestion on Virginia roads, it won’t pave Virginia’s roads, and it won’t fill the pot holes. It will line the pockets of the spending interests and lobbyists in Richmond. This tax hike must be repealed.
As a candidate for elected office in the Commonwealth of Virginia, I urge you to publically call for and work to repeal HB 2313, Governor McDonnell’s $5.9 billion tax increase.
