Norm @ TQ has the gory details on the House side:
Lastly, the Lt. Gov., Bill Bolling, has offered his thoughts on all the fees and in the process, we learn that the House baked-in a tax increase:
In his Executive Budget, Governor Kaine recommended making various changes to Virginia’s tax code to conform our state tax code to the federal tax code. As a result of these changes, certain taxes on manufacturers based in Virginia would increase by $60M.
Interestingly, the Senate removed this “manufacturer’s tax” increase from their budget, but the House accepted the Governor’s recommendation, which would, in effect, increase taxes on manufacturers by $60M.
Ah, the anti-tax label. So easy to apply, even easier to remove.
Indeed.
I must confess this hits a bit closer to home than it would for most. Here in Spotsylvania, industrial land was the only class of property that rose in value during our most recent assessment. Thus, amidst all the proposals for new tax rate (equalization is 83 cents, the county administrator wants 86, the Board advertised 88), any rate above the curren 62 will be a tax increase for them. Now, there about to get another tax increase slapped on them – by nearly all of the very people who were supposed to prevent this.
That said, please note, “nearly.” For Bill Bolling himself (the words Norm cited were from the LG’s column on the budget) takes a dim view of the idea:
I would also encourage the conferees to reject Governor Kaine‘s proposals that would result in higher taxes for retailers and manufacturers. I believe that these proposals would also violate our promise to avoid general tax increases.
Nicely done, Mr. Bolling. We can only hope your fellow Republicans in the House (and the Governor’s office) will listen to you.
Filed under: Bill Bolling, Republican Party of Virginia, Republicans, Taxes, Virginia General Assembly, Virginia Politics
Nobody wants to pay for anything…..life is not a free lunch and neither is state govt………..and what happened to the transportatoin plan, the educatoin plan, and, dammit, im going thru rt 85 tomorrow and dont want to go to all the jail towns looking for a bathroom since none of those rest stops are open…………you and your no taxes…………goes with no services!!!!
Ken, we don’t have a revenue problem. We have a spending problem.
There is plenty of taxes now. We do not need more. We need to cut some of the crap we’ve bought.
I own a company—and the line between me putting a good number of my workforce in the unemployment lines depends on if I get hit with a tax increase.
I’ll close the doors. I swear I will.
Line one is more rhetoric……………….and Virginia is one of the lowest taxed states in the US and that is why we are near the bottom of all funding….education, transportation, etc……..that is why many of us feel we could have a better state if there was more revenue to eg improve transportation and education. ……..and yes, that does take money!!!
Sure….dismiss it out of hand as rhetoric. Never let it dawn on you or any democrat that it’s a fact.
We have a spending problem. Politicians act like there’s a @#$% bottomless pit to draw from. Taxes, taxes, taxes…and what do I get from the State (much less the federal government) for my taxes?? Nothing but a hard time.
Do you think I get up with the sun and go to bed long after dark to satisfy YOUR needs? And with every tax increase, I’m doing that for less in my pocket and more towards the fat son-of-a-bitches that think it’s somehow MY $#%^& job to keep them in entitlement programs.
When I put another 10 people in the unemployment line because I refuse to pay anymore and just shut down my operations, these dumbasses won’t feel it. But if a majority of small businesses in the state do it at the same time, they’ll notice.
I’m tired of it, and I won’t stand for it anymore.
sorry i pissed u off so much…………i’m calling it as i see it…………..start with the interstate highwy system, county and state police, the defense dept spending……..and yes, schhools………the costs of living in usa and in an urban county
Bulletproof Monk, I’ve owned a lot of small businesses in my life time. Some of my businesses were marginal while others were very profitable. If your business is very profitable then riding out a tax hike is not a problem just pass it on to your customer and blame the price increase on the tax. Your competition will have no choice but to do the same. If you are marginal then it gets tricky. This is where planning can get you through the transition period.
Either way changes like this can create opportunity. You can buy out weaker players at a discount. You can lock in cost advantages. You can pad the increase in your favor.
The latter should get some real consideration. Right now, inflation is the tax you should be concerned with and preparing for. If you are planning to buy any equipment on credit in the next couple of years, then I suggest you do it now and lock in a low interest rate. It will give you a cost advantage later.
Stagflation destroys small businesses like nothing else can. You can’t raise prices because of market conditions and your employees will not be able to pay their bills on what you are paying them. Labor strife is ^bitch to deal with when your hands are tied. Plan accordingly.
Good luck. I hope this is helpful.
Signed, not longer racing with the rats.