Kaine to propose job cuts, cigarette tax hike
Bob Brown / Times-Dispatch
Gov. Timothy M. Kaine plans to propose a doubling of the tobacco tax — from 30 cents to 60 cents per pack — according to several state Capitol sources.
The Kaine administration is readying to seek higher cigarette taxes to balance Virginia’s recesssion-ravaged budget.
Gov. Timothy M. Kaine plans to propose a doubling of the tobacco tax — from 30 cents to 60 cents per pack — largely to help pay for health care for the poor, according to several state Capitol sources.
Republicans are wasting no time criticizing the proposal. They say the tax hike would cost tobacco industry jobs and send the wrong message to other businesses considering investing in Virginia.
Tobacco giant Philip Morris USA is based in Richmond, maintaining offices and factories in Virginia’s capital.
U.S. Rep. Eric I. Cantor, a Henrico Republican who previously served in the House of Delegates and is the No. 2 GOP congressional leader in Washington, called the proposal a “all-out attack ... and an assault on jobs here in Virginia and the greater Richmond area.“
Cantor was joined in a conference call this afternoon by House Speaker William J. Howell, R-Stafford.
In addition to the increase, Kaine is expected to announce job cuts — perhaps 1,500 — as well as a $500 million drawdown from the so-called rainy-day fund.
The cigarette tax was last increased in 2004, as part of former Gov. Mark R. Warner’s $1.4 billion tax-hike package for education, law enforcement and human services.
The Virginia cigarette tax — among the lowest in the nation — rose from 2 1/2 cents per pack to 20 cents and then to the current level, 30 cents per pack.
Kaine appears tomorrow morning before the General Assembly money committees to outline his recommendations for closing a hole that he will estimate at $2.9 billion.
In addition to the tobacco tax, Kaine — sources tell The Times-Dispatch — apparently is prepared to recommend slowing down a $200 million tax break for land conservation.
— Jim Nolan and Jeff E. Schapiro
Reader Reactions
Here’s some ol’ Virgginy talk for you Kaine - get the heck outta our state. You liberal, non-Virginian, tax and spend, job destroying weenie.
Gov. Kaine is a leberal democrat. What kind of Governor PROPOSES job cut? I thought he was suppose to help the people of Va. He needs to be shipped to DC and work for his buddy. Maybe training his dog or something. I hope one day he will be standing in line beside of the people applying for unemployment and food stamps. I would love to see this happen.
Typical tax and spend liberal approach. Kaine is a classic liberal democrat who recently insulted our state by saying, “Ol’ Virginny is Dead”. Let’s hope this non-Virginian goes to work for his hero in DC.
The Va. General Assembly and U.S. Congress websites both have quick links to identify and email your elected representative. Just requires your zipcode. Please take advantage of this feature. I am sure many of you are already familiar with this.
On the Va. Dept of Planning and Budget website, http://www.dpb.virginia.gov/budget I was able to find 2009 Budgets by agency, etc. The Peanut Commission budget for 2009 is $220,000. This is a special fund budget, meaning the $220,000 is based on projected revenue collections on fees assessed by the commission. Per my prior post the peanut growers are assessed tax based on their sales. The Va. Auditor of Public Accounts website offers State budget and spending information also. Their site also includes a comparative reports of local government budgets. This information and much more is out there, just requires some work. You might want to prepare yourself for the “Sticker” shock, though!
I am glad to see many others oppose Gov. Kaine’s tax increases. These economic times suggest anything but tax increases. Particularly insulting are tobacco taxes after Philip Morris’s move of headquarters and production to Richmond. And while the Feds are handing out “monies” to the banks, etc. like Santa Claus, you know the counties and cities will also be looking at budget shortages. We need to hold the state and localities to current or lower tax levels and push for lower spending levels. I don’t want to hear the education people with their “the children are the future” agrument. All must do their part through these times and spending can be reinstated in better times.
Lloyd S., I am not surprised Kaine did not respond. My past experience has been that Sen. J. Warner and former Sen. Allen responded to my emails quickly and in detail. Sen. Webb responded but in such general terms it seemed like a form letter. And like you, my emails to Kaine received no response. As to the Peanut Commission, there is also a Milk Commission and I am sure many others. Most are to meet a few times a year to discuss issues of the state agencies and employees under their perview. Check with your library or on the internet to find availability of the State budget appropriations. This should list all agencies and boards and any budget assigned. Or you can Google the Board name. Virginia Peanut Board members are not compensated but are reimbursed for expenses, as travel to board meetings. The Peanut Commission is under the Agriculture Dept. and collects tax from growers based on peanut sales. ($0.15/100#) per tax dept website?) A quick look at the Tax Code of Va. shows tax on hogs, corn, soybeans, eggs, tires, watercraft, etc. The list goes on and on and of course all these are passed on to consumers who then pay a sales tax to most everything. Please, all contact your local, state and federal representative to voice your opinion on these important economic issues, whichever stance you take. I am not convinced they listen but no action would certainly be taken as approval of what they do!! Let’s rattle some swords, or maybe I should say the mightier “Pens”.
Regardless of your party affiliation, simply put - Tim Kaine is not a man of his word. Do any politicians stand by their “promises” when they first run for office? Is it even possible? Heck, I may run for office and win w/o any experience. If Eddie Murphy can do it because of his name, anyone can do it. (I know it was only a movie). It’s a shame that Tim would rather listen for his calling to DC rather than to Virginians. A lot of us have really great ideas on how to cut costs/spending. Does anyone have the guts to do what they know is right and good for the people? Y’all have a great day! G
I REALLY dislike you Tim Kaine. I’m sick and tired of your traitor tactics. You, my non-friend, are NO Virginian. You dislike our culture and heritage so you lead the change from Red to Blue, you rename us and tell us the “Old Dominion” is over, you tax us and you take away our jobs. Yep, I am sick and tired of YOU. I’d like to send you to DC but you would really suck at the National level. Just go away. Get some lame, cushy Obama(nation) job and go away! Stop trying to lead… you’re a follower of others - you’ll NEVER inspire anyone to follow you.
Trapped in Virginia With No Leader
The thing to do would be to install slot machines in this state to bring in revenue. People can’t wait to gamble so let them help close the budget gap. Imagine the “one armed bandits” all over the state. Plus some casinos too. It just might bring in quite a bit of cash. Plus create a few jobs to boot.
Cutting unnecessary state programs would go a long way towards helping too.
Before any job is terminated and before any tax increased ALL UNNECESSARY OUTLAYS OF $$ SHOULD FIRST BE STOPPED. To that effect, WRVA radio recently discussed in dismal detail the hundreds of pork construction projects embedded into the Transportation bill! This political theft of our limited road $$ coincided with our governor begging for more road $$!? Hence you have our true leadership!
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