Today, the Virginia House of Delegates passed a $6.1 billion tax increase, when fully implemented over 5 years. The transportation plan, initially designed as a $2.4 billion tax increase exploded in size once negotiations began between the Senate and House earlier this week. Virginia taxpayers were never afforded the opportunity to read the legislation that included the following tax hikes:
- Diesel tax hike from 17.5 cents per gallon to 6 percent tax on wholesale diesel, roughly a 5 cent per gallon increase
- Sales tax hike from 5 to 5.3 percent
- Additional sales tax hike of .7 percent in Hampton Roads and Northern Virginia
- 3 percent Northern Virginia hotel tax
- Car tax hike from 3 percent to 4 percent in 2013, 4.1 percent in 2014, 4.2 percent in 2015, and 4.3 percent in 2016
- If Congress rejects the federal internet tax scheme, the tax on wholesale gasoline in 2015 will increase from 3.5 percent to 5.1 percent, without a provision to revert back if the law were to pass after 2015
Only three Taxpayer Protection Pledge signers broke their Pledge to their constituents to oppose any and all efforts to increase taxes. They were Del. Dave Albo, Del. Kirk Cox, and Del. Randy Minchew.
“This was not a compromise. It was a surrender of principle and policy. There were no spending cuts or tough choices. This was Bob McDonnell and some Republican Delegates and Senators, in league with almost all Democrats, betraying Virginia taxpayers . McDonnell took the lead on a $2.4 billion tax increase and oversaw its transformation into a $6 billion tax increase. When Virginians look at their thinner, lighter wallets, they have a handful of lawmakers to blame: Speaker Bill Howell, Sen. Frank Wagner, Sen. John Watkins, Del. Chris Jones, and now, Governor Bob McDonnell,” said Grover Norquist, President of Americans for Tax Reform.
“In 2009, Bob McDonnell said he would not raise taxes. Now he says he will sign a very large tax hike. Perhaps that is why he refused to put that promise in writing by signing the Taxpayer Protection Pledge to oppose higher taxes on Virginia citizens. Politicians who refuse to sign the pledge will eventually, when asked, raise taxes.”
[Unlike Prior to the Bill's Passage, You Can Now Read the Bill Here]