Not THE Gas Tax, But A Gas Tax Increase

The Senate unveiled its "Driving Virginia's Future" transportation funding plan that aims at raising $1 billion a year in new revenue by raising the sales tax on wholesale gas purchases and when you buy a new car.

Says the Post:

'Under the Senate plan, entitled "Driving Virginia's Future," the purchase of a car would become more expensive. Instead of the 3 percent "titling tax" that buyers currently pay, the Senate plan would impose the state's 5 percent sales tax. When fully phased in after four years, taxes on a $20,000 car would increase from $600 to $1,000.

The plan would also increase taxes on gasoline by gradually imposing the state's 5 percent sales tax on the purchase of gas by stations at the wholesale level. Stations would likely pass along those taxes in the form of higher prices at the pump, senators said. By 2010, they said, the average driver could pay $65 more each year for gas.'

State Sen. Charles R. Hawkins, R-Pittsylvania, spoke with his usual understated humility.

'"This is nothing short of a remake of our transportation system," Hawkins told reporters at a news conference attended by a dozen Democratic and Republican senators.'

We await the reax from anti-tax legislators in the House...