Kaine: End car tax, replace it with income tax increase
December 18, 2009 | Virginia News
The state's hated local car tax would be replaced with a $2 billion-a-year income tax increase under the new budget Gov. Timothy M. Kaine presented Friday.
The departing Democratic governor's tax proposal accompanied a budget that prescribes about $1.2 billion in spending cuts in a bid to reconcile a $3.6 billion state revenue shortfall for 2010 through 2012.
The plan was on an immediate collision course with incoming Republican Gov. Bob McDonnell, who has pledged to reject any general tax increase, and an anti-tax GOP House majority strengthened by last month's elections.
The budget bill deeply cuts funding for public safety, including $73.4 million cut from local police departments and $270.5 million cut from constitutional officers such as sheriffs and commonwealth's attorneys.
Kaine is preparing a separate bill that would phase in a 1 percent income tax increase over two years.
