HOUSE BILL NO. 971 is a sales tax. This bill is most egregious in that is a plan for future spending, when the economy is back on its feet. The bill targets fuel use. It will collected as part of the sales tax and will be buried in the price of other items sold through vending machines; as such the sponsors are attempting for this new levy to be a hidden tax. The bill in its totality is here.
In addition to the sales tax imposed pursuant to § 58.1-603, there is hereby levied and imposed in each county and city embraced by the Northern Virginia Transportation Authority established under § 15.2-4830, a retail sales tax at the rate of 0.50 percent.
The bill reenacts § 58.1-604.1 and § 58.1-608.3, with the former stating:
Use tax on motor vehicles, machinery, tools and equipment brought into Virginia for use in performing contracts.
with the later being the vehicle for setting aside the taxes for application to …
any public facility or to extensions or additions to any public facility
This is not even a targeted tax that will set aside money for roads. Apparently we need more firehouses with Greco-Roman columns like the one near Purceville off of RT7?
That Rust and May sponsored/wrote this mess is not a surprise. The only good thing about Rust is that he is not Stevens Miller. Kory and Watts, both of Fairfax, both Democrats, also cosponsored this bill. What is a surprise is that our freshman delegate Tag Greason voted for this bill. The vote on the committee was:
YEAS–Orrock, Lohr, Greason, Pollard, Englin, Abbott–6.
NAYS–Cline, Cole, Gear, Marshall, R.G.–4.
ABSTENTIONS–0.
NOT VOTING–Johnson–1
Of the five delegates who represent Loudoun county, three are on the wrong side of this issue, and one is not involved. This is the kind of thing that crushed Republicans in the 2006 and 2008 election cycles. Republicans start acting like Democrats and forgot that the money belongs to the people. VA is in a financial hole not because we tax too little, but because we spend too much. When growth in the budget exceeds growth in the economy, the end result is deficits.
The real trouble with our state and federal government is the spending. New taxes are not fiscally responsible as the proponents of such legislation would contend. This is akin to providing an alcoholic with a full bottle of whiskey and calling it responsible because, “Now he won’t drive as badly as he would if he were suffering from withdrawal.” I also have a bridge to sell to anyone who is willing to buy it.
Our legislators are addicted to spending. Taxes are just a means to this end. We must target the spending and reduce it; then the current taxes collected will suffice. If the legislators are able to cut the budget, current revenues will exceed our needs. The size of government relative to GDP is far too large already. People in VA are tightening their belts, so must Richmond. It has been done elsewhere, 34 states are cutting their budgets. We are raising taxes. What is wrong with this picture?
The people we elect, be they Republican or Democrat, must realize that the total size of government must be reduced. To paraphrase the politics of the 90’s, “It’s the spending, stupid.” To reduce spending takes far more courage than it does to levy a new tax that will not take effect for several years, as HB971 does …
no provision of the first enactment, except adding § 30-134.1 to the Code of Virginia, shall become effective until the first day of the third month following six consecutive months in which the unemployment rate in the Commonwealth is equal to or lower than it was in January 2008
It will be a while before this tax is enacted, but it will be a thorn in our sides when it goes into effect. Are the sponsors and supporters of this bill counting on the electorate to forget who foisted this new expense upon them? Why push a bill that is in effect a plan for future government expansion, when the size of government is too big already? Are not fiscal conservatives for smaller government? Is not Tag Greason touted as a fiscal conservative?
An argument that it is a tax that will not go into effect now, but, will wait for good times to return (thereby not harming Virginians) does not hold water. Such a tax will hurt us when it does take effect. Most importantly such a tax will be used to fuel further growth in government and allow for more spending. The end result will be an even larger financial hangover when the lean times return.
The deficits we run today were born years ago when the economy was doing well. The economy expanded and so did the size of our government. Instead of maintaining the level of services, which already were too profligate, the government took the opportunity to grow. The government grew faster than the economy and now in the lean times we are saddled with crushing debt and deficits.
Voting to increase taxes — even if they are in the far future, possibly after Tag retires from politics — is not why the people of Loudoun sent Greason to Richmond. Target the spending Mr Greason. All spending has constituencies that will protect it. It takes far more courage to slay the dragon than it does to feed it.
Tag’s platform touted fiscal conservatism and keeping VA business friendly. HB971 is not fiscal conservatism; HB971 is not business friendly legislation. Forget the lipstick folks, this bill is a pig. Tag is new to Richmond and we have great hopes for him here in Loudoun. Mistakes happen, and this vote was a mistake Tag.
Tags: Bob Marshall, GOP, Loudoun County
Mistake indeed ! This is the worst time to be raising taxes. Even Keynesians who are against tax cuts in a recession will tell you it is bad to raise taxes in time of economic downturns.
taxes, Fees call them what you will it is still money from the private sector to the public sector in the name of plugging holes allowed to get bigger due to the growth in Government.
Tag Knows better than this. If leadership wants a tax increase tell em to stick in their ear.
While I’m sad to see Tag voting yea on this obvious tax increase, I am heartened to see Bob Marshall voting nay. Proof that he is a consistent fiscal conservative that should be running for Senate.
Definitely another reason to have confidence in Bob Marshall.
Tag – say it ain’t so!
Disappointing indeed!
Looks like Rust is up to his normal “piss on you” routine. Greason following suit is no surprise. We must stop picking the lessor of two evils. The process starts when you find a candidate with a record of values and honesty. The job isn’t given for “nice” people. Bad start. I wonder if he would get the message when his house is TP’d once a week (never during a snowstorm-that stuff is like gold) and everyone for miles around let’s their dogs do business on the lawn? Same politician crap-different person.
ACT,
Using a politician’s front lawn as a canine comfort station is PERFECT! This is exactly the kind of ‘pressure’ we can exert in a tangible way so to speak. The spouse and kiddies see the steaming piles, and it roles down hill — right at the politician.
You are a genius!! Demented. But still a genius.
More information on this vote boys (and girls)!
The vote was on a motion to “carry the bill over” until 2011 it was NOT a vote to PASS the bill. This was NOT a vote for taxes because that was not the motion on the table.
Finer points on why Tag voted this way will come out, and I suspect there will be a greater understanding of the motion and his vote.
C-mac,
good stuff, bring on the info, I shall put in an update. Keep in mind from my perspective that looking at the bill, a NO vote would have killed the damn thing. Which would have been better. Looking at the main sponsors, Rust and Kork, is another black mark against it.
[...] my rounds of the various blogs/news sites I visit have slowed up considerably. I would have noticed this blog post at NovaTownHall Blog on a matter being discussed in the General Assembly right now, otherwise, most especially in that [...]
Here’s an email Tag sent out to Tom Seeman and others explaining his vote. I withdraw my disappointment!
_______________________________________
Tom,
Thanks. I have now read the Blog and offer the following points:
1. I have voted NO on every tax bill that was sent to Finance Sub #1 (which I serve) that required an Up or Down Vote. Sub #1 looks at all tax increases and all “incentives” and being a Freshman on that Sub is a big deal. This is one of the reason’s I was sent to Richmond…to vote NO on taxes and reduce the size and spending of the State Government…and I take that responsibility very seriously.
2. The author on NoVA Town Hall makes some excellent points, but I want o point out one very important issue: My vote was on a motion to “carry the bill over” until 2011….it was NOT a vote to PASS the bill. This was NOT a vote for taxes….cause that was not the motion on the table. While some of my colleagues would rather put their head in the sand and NEVER discuss a potentially risky solution, I am not that person. I could have voted against the carryover motion, and the Bill would have died in Sub Committee…but I thought I owed it to my District to work on a potential Transportation Solution over the summer. Killing this bill, and ALL discussions, is how we get into these situations in the first place.
3. A Carryover vote on most Bills in Richmond IS a Kill. My vote on HB 971 will force us to actually DO HARD WORK over the summer to figure this whole thing out. I have said from the beginning of the campaign that Taxes are NOT my first choice…but we must have the discussion.
4. My beliefs in smaller government and lower taxes are not so fragile that I am afraid of having tough discussions about serious issues. I am confident in my beliefs and am willing to have the tough conversations. Most of my colleagues are NOT willing to have them.
5. My actions last week were NO different from what I said in public many, many, many times during the campaign. I am a business person who is focused on solutions…….and some solutions are not always black and white. Most solutions do not just fall from the sky into our lap. A good solution takes discuss, compromise, negotiations, and leadership. HB 971 is NOT a good bill…but it is a start and it was my decision to face the issue and not put my head in the sand.
Thanks for reaching out.
Tag
My response to Tag this AM.Tag :
Tag:
Thank you for the information. I know these things are tough and the devil is in the details. However, they can also be pretty straight forward if examined in the right light.
Let’s look at this for a second. By your own admission most carry over bills carried over from a previous session die. If that is the case, and the bill in question is a tax increase, then why not kill it now. Think about this is a broader context.
Just yesterday, I was listening to a great conversation on the radio about Keynesian ( sp ) v. Supply side economics. I learned much to my surprise that even Keynes himself was adamantly against tax increases during a recession .Keynes and I could not agree more. If those who consider themselves true Keynesian’s ( Obama Administration excluded ) and Supply Siders can agree that raising taxes in any way, shape, or form is bad and poor economics during a recession, then even discussions of tax increases during a recession this wide and deep is both bad economics, and frankly a waste of time. Sometimes a bad idea is just a bad idea.
I can appreciate your desire to look at these issues from various angles. However, having marveled at the brilliance of Supply Side economics and being a cheerleader for its return, I consider discussions surrounding those things I know to be counterproductive to be a distraction at a time we can ill afford to lose focus.
These times are like no other in our history. We have an administration in Washington who has chosen a third way when it comes to economics. They are applying tremendous negative downward pressure on our entire economic system.
Pressure so intense, every tax increase or potential tax increase at every level has or will have an intensified negative effect across our entire economic system. This is something no other group of political leaders or legislators has ever had to deal with. If this is true, and I believe it is, then some not all of the institutional memory guiding legislators such as yourself should be discounted. Advice and council from those using historical data from circumstances in no way similar to where we find ourselves now, is not worth much. The actions of our own Loudoun County Board of Supervisors is a prime example of a legislative body using an obsolete paradigm to solve a problem never before encountered.
Some Economics absolute truths had better take hold in Leesburg, Richmond and Washington or we will devolve into an economic slump that will take decades to climb out of.
You can’t be held responsible for the foolishness taking place in Leesburg or Washington. However, you can have a positive effect in Richmond leading by example and rediscovering those economic truths that did not die with Ronald Reagan’s or Jack Kemp’s passing.
In closing, I submit there are those out there, legislators and regular folks such as myself who would differ with your approach on this specific issue based on sound and reasoned philosophical grounds.
In the end I know you will do a tremendous job in Richmond.
Yours in Freedom
Greg
LI,
Greg Stone is spot on when he writes:
“If that is the case, and the bill in question is a tax increase, then why not kill it now.”
Do not get me wrong the carry over to 2011 _is_ better bringing it to a floor vote this year. However, a bullet to the head, which a NO vote would have been, is the _right_ thing to do. My dissappointment _is_ lessened, but I still thinking that in the final analysis, Tag could have done better.
I will be writing a follow on that reflects this. Tag deserves it. I never thought I would hear myself say this, but, I am going to say it:
“LI, you are going too easy on the guy.”
How wierd is that?
Excellent analysis from G. Stone!
I may differ with Tag’s decision on his vote as well, but I have the utmost respect in the reasoning of his decision. I am pleased we have a responsive Delegate that can communicate his votes effectively – and this is why I supported him in his bid for the seat – and continue to support him wholeheartedly.
Tag and Greg, thanks for such thoughtful responses – this is how communication within our party and between elected official and constituent is supposed to be. You both make me so Damned Proud (tear in my eye)!
We may disagree with his tactics, but at least he was responsive enough to write a detailed explanation to a constituent. That is a huge step forward from the likes of Poisson.
Am I able to use this product along with other weight reduction products?