House Speaker Howell: car tax elimination dead on arrival

Well that was short lived: House Speaker William J. Howell took to the hallways of the General Assembly Friday morning to inform anyone who would listen that doing away with car tax relief won't survive the House of Delegates.

"That's very real relief," Howell said of the $950 million that Gov. Timothy M. Kaine proposed eliminating. "We're returning that to the taxpayers."

Howell and Del. Kirk Cox, R-Colonial Heights, were both dismissive of Kaine's proposal that the state should end car tax payments to cities and counties and raise the income tax 1 percent to provide local governments with level money. Kaine told the money committee's that the entire cost of the car tax is around $1.6 billion a year, and an income tax hike would provide about $1.9 billion annually.

Kaine called the car tax cycle "ridiculous" noting repeatedly that the idea was great on the campaign trail but has triggered major budgeting problems in Richmond. Kaine also pointed out that since lawmakers agreed to cap car tax payments at $950 million a year in 2004, very few lawmakers have complained about not fulfilling the campaign vow made by Republican Gov. Jim Gilmore.  

"It's ridiculous and they know it's ridiculous," Kaine said. "They abandoned 'no car tax' as soon as the campaign was over."

Cox, an influential budget negotiator, said that Kaine's proposal to boost the income tax to help local governments would not fly in the Republican-dominated House. Cox said it was "simply shifting to another tax."

"I see that as a total non-starter," Cox said. "I see that as having no chance to get through."

Howell said that House budget experts should be able to fill the holes in Kaine's budget without eliminating the $950 million for car tax.

"We've got some pretty sharp people and we'll be working for the next 60 days on that," Howell said, referring to the 60-day General Assembly session scheduled to start on Jan. 13. "We can find it."

Comments

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So, isn't cutting out the Bush tax cuts actually INCREASING your taxes? But Obama promised?

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Once again more lies from the politcal parties just to get elected, just cant trust anyone to fulfill their promises. Someone needs to send a bag of dog doo to all the folks in the state house in Richmond for the holidays.