DNC Chairman Tim Kaine, in order to tend to his duties as Governor of the Commonwealth of Virginia proposed a budget for the 2010 legislative session.  On his way out the door, he is pushing for $1.9 billion in income tax increase and that is only one of the tax increases on the table.

Additionally, he is proposing a tax increase on businesses collecting sales taxes.  Traditionally, businesses have been keeping a portion of the tax collection from sales taxes.  This is estimated to be a $121.8 million tax increase over two years.  Chairman Kaine wants that money to feed the government.  He is also proposing a tax increase on alcohol which is taking the shape of a mark-up on prices at ABC stores.  This 2% mark-up has a pricetag of about $8 million over the next two years.  Another tax increase on his wish list is a change in section 199 deductions, a $60 million dollar tax increase, mainly hitting energy production.   

The good news is that the incoming Governor-elect Bob McDonnell and House Speaker Bill Howell are declaring this tax hiking budget dead on arrival.  In one article, Governor-elect McDonnell was quoted as saying, "I said during the campaign and I’ve said since then that I will not raise taxes.  I would view repealing a significant tax reduction- say, the car tax- as a tax increase."  In a press release from Speaker Howell stated House Republicans rejection of Governor Kaine’s tax increases, saying, "…Governor Kaine’s tax increases once again have no chance of receiving General Assembly approval, ……"

To see ATR’s press release rejecting Chairman Kaine’s tax increas riddled budget, click here. 

Photo credit: super-structure