Local
Va. Democrats propose shifting tax burden
By: William C. Flook
Examiner Staff Writer
January 23, 2009
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Englin
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The Middle Class and Small Business Tax Relief Act would do away with both the state’s 1.5 percent sales tax on groceries and the corporate income tax for businesses making less than $100,000 a year, as well as cut personal income taxes for those making as much as $75,000 a year.
All told, the legislation would return about $370 million to those taxpayers, according to Del. David Englin, D-Alexandria, one of the sponsors.
It would offset the lost revenue by increasing the income tax on individuals making more than $400,000 per year by 1.1 percent , which Englin said would apply to about 30,000 residents.
Because the proposal raises and lowers taxes by the same amount, he hoped the measure would pass muster with the Republican majority in the House, many of whom have signed “no tax” pledges.
Bills that cost the commonwealth much-needed tax dollars or increase taxes in a recession look equally likely to fail this year, with a budget shortfall of at least $3 billion looming over the 2009 session.
Gov. Tim Kaine has proposed deep cuts in education, health care and the state work force to bring the state’s finances back into balance. On Thursday, school superintendents from across Virginia rallied in Richmond to oppose Kaine’s education cuts, which would pare $400 million from schools.
They challenged the largest part of Kaine’s K-12 reductions, which would cap state contributions to support staff. Schools, the superintendents argued, don’t have enough support positions to meet Kaine’s assumptions, resulting in the cuts bleeding into the classroom. Instead, Alfred Butler, executive director of the Virginia Association of School Superintendents, said school districts should be given flexibility to make their own decisions about cuts.
“We, as superintendents, want to do our part, we know the economy is down, we know we can’t get level funding,” Butler said. “But we can’t live with the level that’s being cut and not affect classroom instruction. That’s the bottom line.”
