Va. House Proposes Heavier Tax On Business

[MountainLaurel]

Republicans in Virginia's House of Delegates endorsed a plan Monday to end tax breaks for many businesses, joining Gov. Mark R. Warner (D) and the Senate's Republican leaders in calling for new revenue to balance the state's budget.

Faced with the prospect of closing Virginia's $1 billion budget gap with deep cuts to popular programs, the GOP-controlled House instead voted 59 to 36 to raise $520 million by eliminating sales tax exemptions enjoyed by utility companies, the shipping industry, airlines, dry cleaners, telephone companies and other businesses. House leaders expect the bill to receive final approval Tuesday.

The plan, first put forth by Republican leaders just 80 hours before the vote, turned the Capitol's tax debate on its head. Business lobbyists, Democratic legislators and Warner administration officials gathered for their own tense, closed-door strategy sessions and wondered what to make of a GOP plan that targets the party's traditional business allies.

Proponents of the House measure said they are seeking to solve the state's budget problems without raising sales and income taxes on average citizens. And they said the vote sends a message to business groups who have endorsed the broader tax plans offered by Warner and John H. Chichester (R-Stafford), chairman of the Senate Finance Committee.

http://www.washingtonpost.com/wp-dyn/articles/A46545-2004Feb16.html

Virginia Republicans voting to end tax breaks for businesses: This is a sign of the apocalypse my friends; stock up on bottled water, canned goods, and toilet paper.

Today's weather forecast in Hell: cloudy with a 100-percent chance of freezing rain, sleet, snow, and hail. :scared:

[kiahzero]

1. Good on them

It needed to be done, and the Republicans had been blackballing Warner on raising taxes. Now, maybe the state can start properly funding its universities.

[Nicholas D Wolfwood]

2. So long as they protect small businesses

It's about friggin time. But they have to make some kind of exemption for businesses with revenue under a particular threshold (say, $2 million, for example). It's the small businesses that are going to grow up and create jobs. The big ones are unlikely to gain steam at this point.

[Zeke]

3. California Here I Come...

If VA's GOP's are taxing their own base to get rid of a measely $1 Billion deficit, then what's up with the CA Repukes, and Arnold, and many CA Dems, who are pushing Arnold's $15 billion bail out ballot initiative?

I wish the VA GOP story would get national attention.

[ProfessorGAC]

4. So Is Illinois' Governor

He is mulling over a revision of the tax code to close loopholes. Not necessarily a higher rate, but changes that would require businesses to pay their fair share.

His logic, with which i agree, is that a higher rate would punish those ethical businesses who ARE paying their fair share. But, closing loopholes wouldn't affect them and would make those dodging their fair share would have to pony up.
The Professor