Remember when Candidate Bob McDonnell promised to balance the budget and solve the transportation funding problems without raising taxes?
Apparently McDonnell, now Governor of the Commonwealth of Virginia has forgotten his promise to voters.
In a Press Release, Governor McDonnell announced his scheme to add an additional $3.1 Billion tax burden on the backs of Virginians, not at the pump where the pinch will be felt only by those who drive a car, but at the grocery store and every retail outlet in the state that charges sales tax.
With legislators and transportation leaders by his side, Governor Bob McDonnell announced today a plan that would provide more than $3.1 billion in transportation funding for the Commonwealth over the next 5 years, tying transportation funding to economic growth and replacing the state’s outdated gas tax revenue model with a 0.8 percent increase in the state’s sales tax dedicated to transportation.
And the big news that McDonnell wants Virginians to focus on is the elimination of the 17.5 cents per gallon tax we now pay, calling that tax an “outdated” revenue model.
Outdated revenue model?
Exactly what makes this model outdated?
McDonnell believes it is outdated because it is a flat tax per gallon of gasoline. Which means that there is no automatic increase in tax as the price of gasoline increases. Politicians must then make the case to the public, or defend any increases in taxation, rather than getting an automatic increase as inflation raises prices and volatile markets cause prices to skyrocket from time to time. The state is stuck with 17.5 cents per gallon.
So what the Governor proposes is eliminating the paltry tax on gasoline and shifting it to the food we eat, the clothes we wear and nearly everything we do each day with an increase in the sales tax.
McDonnell also states “Once this provision is enacted, Virginia will become the only state in nation without a tax on gasoline and motorists will likely see a significant break in the price of gasoline at the pumps.”
Funny how 17.5 cents per gallon is an “outdated revenue model” for the state, but that same 17.5 cents is a “significant break” at the pump for us taxpayers.
You can’t have it both ways, Bob!
But the truth is, Virginians will be taking a big hit in the wallet at the grocery store and everywhere else they pay sales tax.
I seem to recall another recent episode with politicians being “cute” with the truth when it comes to taxes. Remember the dust up that Democrat Creigh Deeds got when he tried to play fast and loose with the truth on taxes?
In the video below, McDonnell’s opponent, Creigh Deeds was caught doing the same thing McDonnell is now doing:
So tell me, exactly how is Bob McDonnell more fiscally conservative than Deeds? They are both hiding the truth. They both wanted to raise taxes and trying to play three card Monte with our tax dollars.
First and foremost, we all know that any savings at the pump will be short lived. The 17.5 cents per gallon in “savings” will evaporate in a couple of months as dealers and refiners “absorb” additional revenues. The same logic that McDonnell used to lay claim that increasing sales taxes to 5.8% “will remain below its neighboring states” will be used to explain the price of gas and evaporation of the “significant” savings at the pump.
“We are still lower than Maryland and DC.”
Let’s look at what this will cost us just at the grocery store.
According to Daily Finance:
The Department of Agriculture Center for Nutrition Policy and Promotion estimates a moderate weekly grocery bill for a family of four with school-age children at roughly $236.60, which translates into an annual family budget of approximately $12,300 for food consumed at home.
Assuming the anticipated 5% increase in food prices next year, a family of four is looking at an additional $615 on their annual grocery bill in 2013.
So, if we add in the expected increase of $615 to the $12,300 price a family of 4 pays for groceries per year, the tax increase will add another $103.32 per year to the family grocery bill.
And then there is clothing, home repairs, appliances, even alcohol at the State ABC Stores will cost more. (And whatever happened to McDonnell’s idea to privatize the ABC stores and pay for all our transportation needs?)
And we all know that with Washington printing money like it is going out of style, inflation is going to rear it’s ugly head with a vengeance very soon. And McDonnell wants to add his tax increase on top of inflation.
And there are lots of other taxes in this “bag of tricks”:
Increase vehicle registration fees by $15
Impose a $100 annual Alternative Fuel Vehicle Fee
So as Washington sticks it to us with higher taxes on Social Security, higher health care costs, taxes, taxes and more taxes, Virginia’s “Republican” Governor is following the lead of the Obama – Reid – Pelosi triumvirate in calling for higher taxes. Unlike the Democrats, however, McDonnell’s tax increases hit the poor the hardest. The ones who can’t afford a car and ride the bus will now be forced to pony up for more and more highways for the Obama bedroom community of Northern Virginia.
And let’s not forget the massive tolls McDonnell wants to levy on the poor areas of the Commonwealth – again to carry the money to more affluent areas in the state.
And what of the surplus revenues McDonnell happily reported? Why not use that money?
Well, some of it did make it’s way to Transportation. We will now be paying tickets with new “red light” cameras. And I am sure a pot hole or two were repaired.
But a lot of the money went to pay bonuses to state workers and raises for state employees and teachers. Now no one begrudges state workers salary increases and bonus checks when times are good. But at a time when most taxpayers are counting themselves lucky just to hold onto a job, raises and bonuses are out of the question, yet our “surplus” tax dollars found their way to the bank accounts of those who are paid by taxpayers.
To call for tax increases after giving away precious revenue to public workers at a time taxpayers are struggling is a kick in the teeth.
McDonnell said today that he’s including $58.7 million in the 2014 budget to support the state’s share of cost equivalent to a 2 percent salary raise that would be effective July 1, 2013.
$77.2 million, will go to cover the cost of giving eligible state workers a one-time, 3 percent performance-based bonus in December  under terms of the current two-year state budget.
I personally put in a lot of time helping Bob McDonnell get elected. He promised not to raise taxes.
That seems to be a common theme among Republicans these days. They all talk the Conservative line to get elected and as soon as they are sworn in the RINO comes out.
For me it’s pretty simple. Raise my taxes, lose my vote. If I wanted higher taxes, I’d vote for a Democrat.
We are being crushed by an encroaching federal government. One that is out of control and hell bent on reaching into our wallet, but the wallets of our children and grandchildren and generations to come. We can’t afford for Virginia to do the same.
We need a firewall, not another fire.
As we begin the General Assembly session for 2013, Conservatives are watching.
Remind me again how many Delegates are up for re-election this year?
I will say it again. Raise my taxes, lose my vote.