AFP-VA to fight hidden tax increase on VA businesses

Americans for Prosperity-Virginia continues to stand up for the citizens of the Commonwealth, protecting them against increased taxes at a time when the financial landscape is dismal.

With the state facing budget deficits, AFP-Virginia seeks to find alternatives to Gov. Kaine's budget proposals -- alternatives that would not punish small business owners. A press release from Virginia State Director Ben Marchi explains how AFP-VA intends to stand up for for hard-working Virginians.

RICHMOND – Americans for Prosperity-Virginia (AFP-VA) is pledging to fight Gov. Kaine's proposal to take back the rebate that businesses across Virginia receive for their time and labor collecting sales tax for the state.

"This proposal is nothing but a tax increase on Virginia businesses," said AFP-Virginia State Director Ben Marchi. "Gov. Kaine should offer meaningful spending cuts and focus on consolidating inefficient government agencies as a solution to our budget crisis. The Governor should not take more money from the very businesses that provide badly needed jobs. Asking hard working Virginians to pay more in these uncertain economic times is unacceptable."

The "dealer discount" was established along with Virginia's first sales tax in order to compensate businesses for the time and effort required to calculate and send money to the state. Gov. Kaine argues that computers and automated systems make the process less time consuming and so the state should no longer compensate business owners.

Delegate Ben Cline (R-Rockbridge,) who is also AFP-VA’s Western Chairman commented, "Businesses are serving as the sales tax collector for the state, and it is only fair that they receive a discount for providing this important service." Cline continued, "When the legislative session starts, we need to work to tighten Virginia's budget and cut wasteful spending, not attack the very businesses that are keeping our economy going."

Marchi added that while Gov. Kaine's complete budget proposal did offer several areas of budget cuts in education and public safety, he failed to address the culture of spending that has gripped Richmond for the last ten years.

“There are other methods to cut wasteful programs that should be looked at before going to taxpayers’ wallets,” Marchi continued. “As of the last count, the Wilder Commission still has 24 recommended cuts or consolidations that have not been implemented, including privatizing the sale of liquor and eliminating the Department of Alcohol Beverage Control.”

Americans for Prosperity (AFP) is a nationwide organization of citizen leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and scope of government is the best safeguard to ensuring individual productivity and prosperity for all Americans. AFP educates and engages citizens in support of restraining state and federal government growth, and returning government to its constitutional limits. For more information, visit Americans For Prosperity.