Governor Kaine and the General Assembly have a major crisis on their hands: they have a comprehensive plan to fix the Commonwealth’s transportation woes, but no money to pay for it. Funding schemes under consideration offer a variety of options including a range of tax increases. But another problem looms if the proposals currently being circulated are adopted: Virginia will have unintentionally hurt its low- to moderate-income wage earners more than higher income workers.
Virginia: Taxes Won’t Get Larger, But the Potholes Will
Source: Citizens for Tax Justice, July 18, 2008