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January 08, 2013



I don't understand why the Governor is not talking about trading this hike in a sales tax with some cut in the income tax!!! The sales tax hike by itself will disproportionately hit lower income Virginians


The gas tax is invisible anyway. You can eliminate the gas tax, but it does not mean gas prices in Virginia will drop by 17-18 cents per gallon. The attendants will "adjust" the prices accordingly to take advantage of customers and score more profit out of their wallets by raising the price as close to the national average as possible.

Fellow Patriots

Its a $15 registration fee NOT $10.


Yeah, there are some problems with your summary Chris.

You say "I will take a .8% raise in the sales tax in exchange for a 17.5% elimination of the gas tax." But the gas tax isn't 17.5%, it's 17.5 cents/gallon, which, at $3.50 cent gas is a 0.05% tax on gas.

Plus, the $10 car tax hike is actually a $15 dollar increase in registration fees, not the personal property, or "car tax."

Past there, as Thomas points out, there's no reason to believe gas prices would come down with the gas tax elimination. Every gas station owner charges what the market will bear. That has nothing to do with their costs except inasmuch as they'll stop selling if costs exceed what they can charge. There's no reason to believe lowering the gas tax would lower gas prices a penny.

That said, good political analysis, and keep up the good work.


Evan, I'm not quite sure about the "...what the market will bear." comment. Isn't there some sort of... zone thing that gas companies have? In other words, if your station is in a certain zone, you can't charge less than a certain price per gallon. I'm not sure if it works the other way, too. (By that I mean, I'm not sure if their is a ceiling price.)

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