On his way out of office?
That’s the rumor speading across GOP-Land this week.
The Governor’s refusal to rule out tax increases in his outgoing budget and his assertion that he plans to “do the right thing” has stoked the rumor mill to a fever pitch.
So much so that Governor-Elect McDonnell has personally requested that he not pursue it.
And Kirk Cox, ranking GOP member on House Appropriations, has called it dead on arrival.
Although one can understand the Governor’s interest in getting the state’s $950 million contribution to car tax relief off the books, it still would be an odd proposal for a former mayor to make.
First, it is a classic pass the buck to the localities maneuver.
Right now, the state reimburses Virginia localities $950 million for the revenues that the jurisdictions lost when the state implemented car tax relief. If the state eliminates the reimbursement that it has been making for the last decade, most localities will simply pass the bill back to their citizens, at a time when families across the state are already suffering. .
Second, the GOP will spin this as a Democratic proposal for a massive tax increase on certain citizens and regions of the state. If localities were to bill citizens instead of the state for the current $95 million in car tax relief, a two SUV family in NOVA could see a tax bill hike in the neighborhood of $1,000-$1,500.
That’s real money.
Finally, crafting a budget that has no chance of passing will be seen by many localities as irresponsible, regardless of the poltical leanings of their elected boards, largely because it will increase local uncertainty about the extent of state support at the very moment the jurisdictions are developing their own budgets.
I tend to believe that the Governor will call for the repeal of other tax breaks and tax credits that have been enacted over time.
But I’m not sure that I see the upside of having the head of the Democratic National Committee advocate reinstating the most hated tax in Virginia and reinforcing all the fears the public already has about the likelihood that the Democrats will rain taxes upon them in the next few years.






The Car Tax is the most ridiculous tax there is ,and reinstating the full amount would be a travesty. People are struggling to make their car payments and keep their car on the road as it is. It should be illegal for this tax to be reinstated, as it shouldn’t exist in the first place. Every aspect of our lives is taxed, and the liberals seem to sit around and think about what other ridiculous taxes they can impose. Enough is enough. Stop wasting so much money ,and there wouldn’t be a need for more taxes. We are being taxed to death, and every day are rights and freedom are being eroded, little by little.