Virginia income tax detail from Kaine's office....

Gov. Timothy M. Kaine's office is offering some historical perspective on his proposal to boost the state's income tax 1 percent to offset the $950 million a year spent on the car tax.

Here's the detail straight from the governor, and remember that these are answers from the folks who are advocating the increase:

- When was the last time the state income tax was increased?

The last time the state income tax was increased was 1972 when the 5.75% rate was added for income over $12,000 annually. (The $12,000 figure was increased to $17,000 in the late 1980s.) The corporate tax rate was also increased from 5% to the current 6%. Before 1972 the last increase was when the 5% rate was added in 1948.

The proposed maximum income tax rate of 6.75% (the current maximum of 5.75% + the 1% surcharge) would still rank Virginia favorably among states that have a state income tax rate. Neighboring state income tax rates include:

- MD, 9.23%

- Washington DC, 8.5%

- NC, 7.75%

- KY, 6.76%

- WV, 6.5%

- TN, 6.0% (on interest and dividends only)

- By how much in dollar figures would the average family see their income tax bill increase with a 1% surtax?

The increase in income tax liability is dependent on a person's taxable income. Some families with low income will experience only a small dollar increase, while the impact will be larger for those with higher incomes. Citizens will more broadly benefit as a result of a more diversified local revenue stream that avoids deeper cuts to public education, public safety, etc.

Comments

[Soft Cialis]

I did not file 2005 federal taxes and i received tax detail from the IRS?
but i can not find my W2's for 2005 can i just use the information from the IRS tax detail form and file. The only thing different is the IRS has me as single and I was not single and i have 2 children plus a husband who did not work. If not do i need to contact my previous employer.

[bridal dresses]

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[Payday Loan]

although tax increases does give some boost to country's GDP but there are some other issues needs to be considered before any tax increment;what will be the effect on country's economy,which class & how many people will be benefited from this rise of tax,what will be the impact on international trading etc.

[Paul Rein]

In typical fashion we are told a 1% surcharge, but in actual fact it is close to a 20% increase in what we the people would pay in taxes. For example if you paid $500 in state income tax, the so called 1% surcharge would raise your taxes to almost $600. However in typical fashion our politicians say, hey it only went from 5.75% to 6.75%, therefore it is small. Go back to math class to learn what the real % increase is. I would bet a lot if it was lowered from 6.75% to 5.75% we would be told it was almost a 20% reduction. SHAME on you Mr. Kaine