Well Look Who Else Loves Higher Taxes!

TERRY MCAULIFFE — come on down!

Another person who had a hand in delivering those votes was Terry McAuliffe, the Democratic businessman running to replace McDonnell, according to Republican and Democratic sources around the State Capitol.

“He’s been working the phones” said one GOP source of McAuliffe and his role in aiding passage of the revised version of HB 2313.

Earlier this week, McAuliffe came out in favor of the plan whose key elements include conversion of Virginia’s 17.5 cents per gallon gas tax into a wholesale tax on gas and diesel fuel, and raising the state sales tax to 5.3 percent from 5 percent when the accord was brokered this week.

The plan would also increase titling taxes on the sale of automobiles, boost by $100 fees on alternative fuel vehicles, and further raise wholesale gas and sales taxes in Hampton Roads to raise $200 million annually for regional road projects.

Of course, why 34 House Republicans would support a bill championed by veteran tax hiker Terry McAuliffe is a mystery to the rest of us.

HB 2313 passed the House of Delegates this afternoon 60-40, with bipartisan opposition and support.

Bearing Drift gets a hat tip from the Virginia Pilot as well.  Good to know we have friends out there!

Meanwhile, here’s some video footage of the House Republican Caucus just moments after the transportation tax hike passed:

Pretty tough having two parties of big government to contend with, folks.

  • another temporary problem solved by a permanent tax increase

    never waste a crisis, eh?

  • Tom Dykers

    When the wholesale price of fuel goes down to where it should be, they will cry about not having enough money, again. Bob McDonnell said that revenues should be tied to the economy, so a tax based upon a percentage is more appropriate than a per gallon tax. That is based upon the false assumption that there is a positive correlation between fuel prices and the economy. That is pretty simplistic. We have record high fuel prices, and the economy is weak. If anything, a tax per gallon would tend to have the effect he says is desirable When the economy is robust, there is more demand for shipping. People travel more, and so on. This is not wise for many reasons.

  • These two larger parties are making me more proud of being an independent every day. Way back in 2006, our lead candidate Gail “for Rail” Parker stated that she was more conservative than the incumbent at the time George Allen. We were right then, and based on this a large number of oil party incumbents are proving us right again. http://www.VoteJoinRun.us

    • I’m with you on that, Joe ;o)

    • Gail “for Rail” Parker’s campaign is “slower than a snail”, “dead as a doornail”, and an Epic Fail.

  • pinecone321

    There are more tax increases that are included in the committee conference deal, From Riley at Virginia Virtucon-


    In addition to the tax increases I explained yesterday there are
    additional taxes I was not aware of until I read the Conference Report:

    • The personal property tax will increase from 3.5% to 4.3%.

    • The tax on vending machine sales rises from 4.5% to 6% in NOVA and Hampton Roads and 5.3% elsewhere in the state.

    • Heavy equipment used for contracts on road construction, railroads, docks, etc. will be taxed at 4.3%, up from 3.5%

    • Except for the increased tax on motor vehicles, other tangible personal property will be taxed at 5%.

    • In Northern Virginia, commercial, industrial and residential land and
    building sales will have an additional tax of 25 cents per $100 of
    value. (A Conferee had previously told me the tax was 40 cents per $100)

    • In Northern Virginia there will be a 3 % hotel tax (Legislators were previously informed this amount was 2%)

    • While the bill shifts the 17.5 cent flat tax per gallon of gas to a
    3.5% sales tax on the wholesale price of gasoline, it is speculative to
    claim that motorists will pay less for gas because the sales tax will be
    computed on the wholesale price of gas as of February 20, 2013 and will
    not go below this floor.

    • The sales tax on purchasing vehicles (trucks and cars) increases from
    the current 3% to 4% on July 1, 2013, 4.1% on July 1, 2014; 4.2 % on
    July 1, 2015, and 4.3% on July 1, 2016. (Legislators were told it was a
    straight 4% tax. In reality, the tax increases each year through 2016.)

    • If Congress does not pass the internet sales tax collection law, the
    tax on wholesale gasoline beginning January 1, 2015 will increase from
    3.5% to 5.1%.(regular gas) and 6% (diesel). There is no provision in the
    law to revert back to 3.5% should Congress pass the internet tax law
    after 2015.

    • By the way, if Congress passes the internet tax, mom and pop internet
    stores will be forced to comply with thousands of jurisdictions’
    differing tax rates. Big online companies can easily comply but their
    smaller competitors could be forced out of business.

    To reiterate, here are the other changes I mentioned yesterday:

    • Replace the current 17.5 cents per gallon flat tax on gasoline with a
    3.5 % wholesale sales tax paid by distributors, which will be passed on
    to consumers, and a 6 % wholesale sales tax on diesel fuel.

    • Increase the 5% retail sales and use tax paid statewide on most
    purchases to 6% in Northern Virginia and Hampton Roads and 5.3 % in the
    rest of the state.

    • Apply a $100 annual fee on alternative fuel vehicles, including hybrids.

    • Increase the amount of general fund money diverted to fund
    transportation from .50 % to .675 %, raising roughly $200 million when
    fully phased in.

    • If Congress passes the Marketplace Equity Act (which requires on line
    businesses to collect sales taxes) the proceeds will be distributed as
    follows: 55.55% for schools; 22.2% for local governments with no
    restrictions; and 22.2% for roads and transit. If Congress does not pass
    the Internet sales tax collections act, an additional 1.6 % tax would
    be added to the wholesale gas tax to achieve the same end.

  • Lovettsville Lady

    This is nightmare and my party, or former party, is doing it. I can’t believe that I ever thought McDonnell was a conservative! Shame on me!

  • DJRippert

    Sometimes people write LOL when they think something is funny. In this case I did burst out laughing. ” … vetran tax hiker Terry McAuliffe.”. I give up – from what elected office did Terry raise your taxes or anyone else’s?

  • DJRippert

    OK – one more time. Inflation is real. The 17.5 cents per gallon tax instituted in 1986 bought 17.5 cents worth of road maintenance and constrtuction in 1986. Those same 17.5 cents per gallon have bought fewer and fewer real cents of road maintenance and construction as inflation has eaten into the purchasing power of money.
    Following me so far?
    Now, freezing the gas tax at 17.5 cents per gallon actually creates a tax cut in real terms each year that inflation exists. And that would be every year. Repeat – the gas tax has been cut in purchasing power every year for the last 27 years.
    I have to wonder – do the Tea Party types in Virginia not understand inflation? Or, do they understand inflation but just want to belch hot air about “tax hikes”?

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