The Commonwealth Institute: Governor’s Transportation Tax Hike Hits Low-Income Virginians Hardest
ITEP Work in ActionThe tax and fee hikes proposed by Governor McDonnell to fund transportation will take a far larger share of income from Virginians at the low end of the income spectrum than those with higher incomes who are better able to pay.
The governor proposes to increase the state sales tax to 5.8 percent, eliminate the gas tax (except for diesel), increase vehicle registration fees by $15, add a $100 fee for hybrids, and divert more funds from the general fund from both the state sales taxes of current collections and future collections of internet sales.