Thursday, December 13, 2007

It is not easy to end a new tax

Virginia in 2003 added a $1.00 fee to DMV transactions to raise money to pay for the 400th Anniversary of Jamestown. $6 Million was raised, or which $4 Million was spent on the celebrations. That was last year. Now some legislators, mainly Republicans, want to end the fee since there are no more Jamestown activities left. The Governor, Mr. Kaine, who is a Democrat, wants to keep it to pay for other government activities. This is a classic example of how hard it is to get rid of a revenue device once its' "temporary" requirement is over. See The Washington Post Kaine Angling to Keep DMV Fee

Another good example is Massachusetts had an "emergency" surcharge on their income taxes. I think it is still being collected, although the emergency was several years ago.

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