It seems that the General Assembly can’t agree on how to fund our transportation needs. Gas tax? No. Sales tax? No. Regional plans? No. So I’ve been thinking about what we could do to move the pile forward, as it were.
There are those who think transportation can be funded by existing revenues, mostly by finding expenses to cut. So, how about we ditch the car tax reimbursement to the localities?
Last time I looked, former governor Jim Gilmore’s “no car tax” plan was costing the Commonwealth $950 million. By killing this plan, either outright or over a period of a few years, that money could be used to fund transportation. Yes, this amounts to a tax increase, but only on people who own cars. Think of it as a user fee 😉
Then there are those who believe we need a dedicated revenue source. OK, let’s find one 😉 How about an increase in the income tax rate?
Virginia’s top tax bracket is 5.75%, a relatively low rate when compared to other states. In fact, when looking at the total tax burden, Virginia ranks 33rd, according to this analysis. Based on my “back of the napkin” calculation, a 1/2% increase in the top tax bracket would result in additional revenues of about $750 million, while a 3/4% increase would result in about $1.1 billion. (I used the data in table 1.2 in the 2007 report (pdf), which is 2005 data.)
So there you have it. A couple of ways to pay for transportation. (Of course, it goes without saying that this money needs to be locked up in order to keep it from being used for other stuff.) Thoughts?
VIVIAN J. PAIGE | All Politics is Local 
I’m still strongly in favor of an increase in the fuel tax. I do not understand how anyone who opposes an increase in the fuel tax would think any other tax increase would be more fair (and that includes Governor Kaine).
An increase in the fuel tax would cause those that benefit and use the transportation infrastructure the most to pay for it. I do not comprehend how any other method would be as fair.
What’s wrong with those who benefit from the roads pay for them?
Why should the people of Hampton Roads alone pay for infrastructure for the benefit of those who buy products which come in through the Port of Virginia, and who live all over the Eastern half of the United States? The only right way to pay for the 3rd crossing and associated roads, which account for more than 2/3 of the $9 billion MPO plan, is to collect weight based tolls, which will fall primarily of the trucks for which they are being built, and will be passed along through shipping costs to the eventual beneficiaries.
The Tidewater Libertarian Party presented Gov Kaine with a road funding plan, perhaps Democrats and Republicans should give it some thought instead of just immediately seizing on transportation needs as an excuse for more taxes on one group or another.
You can read it at . http://tinyurl.com/4kwcjh
I agree with everyone, because they’re all good ideas really. Also Mrs. Paige, i thought of an income tax increase myself. between that gas and tolls, i was thinking of ways for them to get the money within 3 to 5 years. all these ideas seem pretty simple, yes it means money out of our pockets but i wanna know neigh-sayers, where else are we gonna get the money? i also agree that they have the funds hidden somewhere in their confines, but it’s obvious they aren’t gonna cough it up.
but sadly enough, they’re obviously not gonna agree on funding plan either. i’m thinking we have to flood them with emails, just like with the abusive drivers fees. Let’s send them so much we’ll shut down there mail servers
Don Tabor,
Evidently you are a Libertarian. Evidently you are in favor of every highway being a tollroad.
I stand with Ronald Reagan who increased the fuel tax to pay for his transportation improvements. I stand with Dwight D Eisenhower who envisioned a system of freeways paid for through a fuel tax.
Tollways are inefficient. They only add another layer of beauracracy to pay those who must stick their hand out at the tollbooth to collect the tolls. There is also all the supporting cast who must manage and provide accounting for all the new public employees who stick their hand out. Tollroads are a wasteful method of paying for our infrastructure. Of you want to waste tax dollars, vote for a tollway.
How much extra did you advocates of increased taxes send in?
If the answer is “Nothing,” stop trying to stick your hand in my pocket until it isn’t.
LittleDavid – I’m not against a gas tax. I’m just trying to offer some alternatives. The gas tax is DOA.
Don – don’t the cars use the roads?
James – transportation costs money. How do you propose we pay for it?
Hey, James, how much extra did you send it to pay for all of the benefits that you get from current gov’t programs, but rail against like a whiny little baby?
What was that? Nothing?
Right. STFU.
James,
I’ll stop demanding that you help pay for transportation maintenance and improvements when you stop using the highways.
Vivian,
Governor Kaine’s plan for alternative methods (other tax increases) is just as DOA. Meanwhile Dick Saslaw in the Senate has put together a plan with some support that largely would increase fuel taxes to raise increased revenue.
Since neither Kaine’s nor Saslaw’s plan is apt to win support from the “No New Taxes” crowd, I do not think it is wrong to support Saslaw’s plan as being the better of the two.
And if neither plan goes anywhere? Well then who opposed them and who is to blame for “No New Progress” on funding our transportation infrastructure needs? Who do we need to run out of office?
LD – yes, the governor’s plan was DOA. I said that in an earlier post. Saslaw’s plan is DOA in the House. I’m just trying to figure out what the “No” crowd would be willing to support (besides well, nothing.)
Vivian,
The “No” crowd is going to continue to shout NO until the cows come home.
It is my understanding that studies have shown an increase of 5 cents per gallon in the fuel tax is necessary to continue maintaining what we already have, and such an increase would not help fund needed improvements.
Once our bridges start collapsing due to failure to maintain them (like they did up in the Twin Cities in Minnesota) perhaps then we can run the No Birds out of office. It would be a shame if loss of life would be necessary to get the No Birds to change their votes or run them out of office.
Double post.
Here’s another thought. Will the “No bird” politician be the first to stand in front of the bridge with a sign, for a photo op, that reads “Keep our bridges open” when VDOT starts condemning them and closing them due to lack of funding to maintain them?
Once VDOT starts closing them, it is going to take some time to fix them and get them reopened. And if VDOT officials bow to political pressure and do not condemn unsafe bridges, they are going to be thrown in prison for failing to do it if they do fail with resulting loss of life. Too bad the politicians that refused to fund the maintenance needed do not end up rotting alongside them.
Viviian:
Thank You for wading into this debate.
I’ll put you down for repeal of the PPTRA…
No offshore drilling in Va or ANWR right?
Spank That Donkey,
Brief and to the point.
Vivian, your arm is being twisted.
Spank That Donkey: Why continue to invest in old technology that will only continue to cost the American consumer an arm and a leg? Only oil companies will benefit because they have more product to push at an inflated price. Filthy Republicans know the price of oil will never come down, they just want to milk the product for all it’s worth.