From the left-leaning Virginia Organizing Project, which disdains gasoline taxes because of their regressivity:

The Virginia Organizing Project has proposed as an alternative a two-part transportation funding plan. First, we would raise new revenue by imposing a small income tax surcharge. A five percent surcharge (not a 5 percent rate increase but a 5 percent charge added to existing tax liabilities) would raise approximately $450 million. We recommend using up to $400 million of this amount to finance ongoing maintenance deficits, with the balance dedicated to interest payments on newly issued revenue or general obligation bonds in the amount of $600 million. The proceeds from these bonds should be sufficient to finance the new transportation investments for Northern Virginia, Hampton Roads and throughout the Commonwealth. Such an approach would also finance these investments as they should be financed—on the basis of ability to pay—and it would rely on the state’s sterling credit where it should be counted upon—to finance relatively long-lived state assets.

Well, it’s an idea. Trouble is, Virginia’s tax structure also is “regressive and outdated,“ according to . . . the Virginia Organizing Project.

Dewitt,

While you hit on a curious problem, I’m not certain whether your solution is fair or is punitive.

If a Mexican earns a fair wage, he/she is entitled to spend it as he/she wishes?

There are many, many problems:

1) Banks make money from electronic transfers - they are not eager to chop off their own noses at a time like this when they need all the profits they can muster (and yes, many banks are now actively courting illegals);

2) So-called “informal” money transfer systems flourish in many parts of the world - electronic transfer is convenient, not mandatory;

3) If memory serves, remittances are already on the decline as Mexicans are increasingly drawn to the benefits of establishing a community up North. In other words, no need to send money if life up here is so good and sweet- send for your Tia and tell her to come up too;

4) Some Mexicans already pay taxes in the form of payroll taxes, but not enough to offset their drain on services;

5) Politicians are afraid of alienating the Hispanic vote;

6) We need migrant farm labor; No.Va. needs people who will agree to work in the high cost of living DC area; if we chase them all away by making Va. inhospitable for illegals, our economy will (arguably) suffer.

We need more remittances, not less, to prop up the weak Mexican economy. We need to make citizenship less attractive. We need to make migrant farmwork more attractive.

We need to link transportation costs to all the vehicles that are straining our highways to the breaking point. 

Polluting Mexican trucks and jam-packed Mexican cars are a nice scapegoat but I’m not sure that is any more than just one piece of the puzzle - plus, don’t want to get punitive about it.

Ed wrote:

“Libs insist on non-regressive even when it makes no sense. Cons are so attuned to the idiotic no-new-taxes mantra they come up with endless fees, surcharges and other “non-taxes” in order to pretend they are not taxing you when in fact they really are taxing you.“

Yup.  I agree.  Also agree that a gas tax appears to make the most sense for several reasons, albeit politically hugely unpopular. 

Anybody check out what gas is going for in other parts of the U.S. compared to here in Central VA?  We’re actually getting off easy compared to lots of other places, where it’s up to $5/gal. or even more - a chunk of which is the state tax, which I understand in most states in higher than Va’s.

The solution to Governor Kaine’s transportation is as simple as the nose on your face! Politicians can’t see it because they prefer complicated solutions.
The Governor wants to impose more taxes on legal citizens. Why not impose fees on illegal invading immigrants remitting untaxed dollars to foreign nations?
According to the Houston Chronicle – “Mexican Remittances were $25 billion in 2006. Mexicans working abroad sent home a record $25 billion, most of it from the United States.
If the General Assembly were to impose a “remittance fee” on untaxed dollars being electronically transferred from Virginia to foreign countries, these funds could be used to construct new transportation infrastructure, repair existing highways, help finance the medical demands of uninsured immigrants, provide school boards funds to handle mandatory education in public schools

The Inter-American Development Bank, or IDB, reports “Remittances have surpassed tourism as Mexico’s second-largest source of foreign income.”
Is it our duty to support the government of Mexico too?

Damned Yankees.

You could argue that a gas tax is not regressive to the extent that:

1) even poor folk use the roads;
2) a gas tax would actually link costs to payments - i.e. road use paid for by road use tax;
3) higher gas costs would disincentivize gasoline usage, with all the attended benefits (less dependence on foreign oil, pollution, carbon (gl.warming) emissions, possible drop in commodity prices…);
4) tax paid at the pump; easy to collect impossible to evade;
5) the Europeans already do it this way and it more or less works.

The benefits of a payroll surcharge:

1) less regressive;
2) less crime due to stolen gastanks;
3) fewer work stoppages or riots a la Hispania;
4) it would make Bil Oil and the oil barons happy, as they continue to soak up profits, not the guv’mint;
5) with the true cost of road maintenance buried in your 1040 you would be less likely to bitch about providing good roads for illegals to drive on in their aging junkers and polluting trucks;
6) it would make developers, Jaycees, band boosters, and county supervisors everywhere happy, because the costs of unbridled development would be subsidized by your and mine tax dollars.

The political rhetoric is stifling and insane. Libs insist on non-regressive even when it makes no sense. Cons are so attuned to the idiotic no-new-taxes mantra they come up with endless fees, surcharges and other “non-taxes” in order to pretend they are not taxing you when in fact they really are taxing you.

Meanwhile, as reported in today’s T-D, CEO compensation continues to rise disproportionate to the general public even as company performance is not always keeping pace.

No easy answer. Not building roads might do more than hamper development. It might lower the regional quality of life if it gets out of hand.

I prefer a gax tax at the pump. I also think windfall profits for Big Oil should be forceably channeled into offshore drilling and refineries. I also think a rebate at the pump for 18-wheel diesel gas would keep the produce flowing as gas prices soar.

Unless that convinces an ice road trucker to take his semi to the supermarket instead of the family car in order to save on gas. (he or she could at least stock up!)

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