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@AwalkerinTheCity. McDonnell is proposing to raise the state sales tax. That will get him few points with the anti-tax above all else voters in Iowa or NH. McDonnell has zero chance at getting the 2016 Republican nomination anyway. If he runs, it would really be for consideration to be picked for the VP slot.

What I don't understand about 5his plan is to keep gas exempt from the proposed %5.8 sales tax. If the retail price of gas minus the current VA and federal excise taxes was subject to a %5.8 sales tax, it should bring in revenue roughly equivalent to the current state 17.5 cent gas tax. If gas goes to $4 or $5 a gallon, the sales tax would bring in more revenue. Yes, this plan is mostly crazy.

My guess is that McDonnell is proposing this to throw a wrench into the legislative process, so there will be no increase in the gas tax or other significant revenue increases this year and he can depart as Governor with no (real) tax increases on his watch. Proposals get forgotten, only what makes it into law matters for future consideration as VP or a cabinet post.

by AlanF on Jan 9, 2013 11:52 am • linkreport

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