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I’m sure Barack Obama never figured that some of his teammates for tax increases would be Republicans, but if you are Barack Obama you have just hit a three-pointer from mid court with this latest play from Virginia Republican Governor, Bob McDonnell.
Governor Bob McDonnell was looking for the legacy that would launch him as a presidential contender in the Republican Party. He wanted to be able to project an image of a bi-partisan negotiator who is able to reach across the aisle to pass landmark legislation, and he banked on transportation reform in Virginia. We are all for transportation reform, but Governor McDonnell overachieved in his goal by passing a $6 billion tax increase. This tax increase is the largest in Virginia history and was only made possible with the instrumental votes of Virginia Democrats.
Governor Bob McDonnell will now have a legacy of begging for tax increases. Governor Bob McDonnell begged Republicans and Democrats in the Virginia General Assembly to pass a $6 billion tax increase. Now Governor McDonnell will be begging Congress for help to institute an Internet tax in Virginia as part of the $6 billion tax hike, since it would require the permission of Congress to start taxing the Internet. It is such a sad day in the Republican Party when we have a Republican Governor going to a broke and defunct Congress to beg for greater latitude to tax his people.
To make matters worse, this massive tax increase was all under the pitch that we need more money for roads, but in true political fashion, only 22% of this Internet tax would be even used for roads. Democrats constantly argue that the Virginia Sales Tax is for education. They also get the Lottery money for education. And guess who receives the bulk of revenue from the new Internet tax if approved? Education. They will receive 55% of the Internet tax. So much for the excuse that all these new taxes are needed to make roads a priority.
So, if Governor McDonnell wants to be successful in begging Congress for a tax increase, he might want to seek advice from Barack Obama. Obama knows how to get a tax increase out of Congress. However, if Governor McDonnell is unsuccessful in convincing his Republican colleagues in the House of Representatives to pass the Internet Tax, all is not lost for those who love taxes. The $6 billion transportation plan has a backup measure – they will increase your gax tax even more than they had originally planned already!