Fwd: Governor's News Release ; Virginia

[Guest guest]

FYI

Mike Savory

Awak(e)A_dvocacy

COMMONWEALTH OF VIRGINIA

Office of the Governor

Mark R. Warner FOR IMMEDIATE RELEASE

Governor December 15, 2003

Contact: Ellen Qualls

Phone: , x2379

Cell Phone:

Internet: www.governor.virginia.gov

<http://www.governor.virginia.gov>

GOVERNOR WARNER ENCOURAGES VIRGINIANS

TO TEST EFFECTS OF HIS TAX REFORM PLAN

~Online calculator allows Virginians to instantly estimate tax reform

impact~

RICHMOND - Governor Mark R. Warner today encouraged Virginians to

evaluate the effects of his tax reform program on their own finances

through a new, on-line calculator located at

<http://taxreform.governor.virginia.gov>. The calculator also can be

accessed from the Governor's homepage at www.governor.virginia.gov

<http://www.governor.virginia.gov>.

"We know that 65% of Virginia households will pay less under this tax

reform plan. But this on-line calculator allows individuals and families

to see for themselves," Governor Warner said. "The plan is fiscally

conservative and fair to the people who pay the bills."

Developed by the Virginia Department of Taxation, the calculator is

based on the real numbers used by families and individual taxpayers in

preparing their state income taxes, and on the most recent consumer

spending information compiled by the federal government. The calculator

incorporates anonymous information on taxable income, itemized or

standard deductions, age, and the number of dependents. The calculator

also estimates the tax implications of the proposed one-cent increase in

the state sales tax, the one-and-a-half-cent reduction in the state

sales tax on food, continued repeal of the property tax on personal

vehicles and proposed increases in Virginia's lowest-in-the-nation tax

on cigarettes.

Economist Roy Pearson, a professor at the College of &

School of Business, former director of the College's Bureau of Business

Research and past president of the Virginia Association of Economists,

has reviewed and validated the methodology used in determining that 65%

of Virginians will see an overall reduction in their tax obligations

under Governor Warner's proposal.

"I concluded that the estimate that 65% of Virginians would pay

less is sound, and in fact an underestimate," Pearson said. "The

methodology ... is sound and highly accurate, because each actual

taxpayer's return was recalculated using the proposed exemption and rate

structure. The methodology for calculating the sales tax impacts also is

very detailed, and uses the best source available for consumer spending

patterns, the Consumer Expenditure Survey data from the U.S. Bureau of

Labor Statistics."

"I appreciate Dr. Pearson's independent validation, but nothing is as

convincing as the individual example," Governor Warner said. "So I ask

critics of this plan, and those who are inclined to support it, to see

for themselves by going online and using the online calculator."

The Commonwealth of Opportunity budget and tax reform plan, which was

announced on November 24th, will generate approximately $500 million a

year in new revenue to fund existing commitments in education, health

care, and transportation. The plan includes the following specific

elements:

* Lowers the income tax for most Virginians.

* Reduces the food tax by 1.5 cents, and adds one penny to

the sales tax.

* Closes corporate loopholes.

* Increases Virginia's lowest-in-nation state cigarette

tax to pay for health care needs.

* Finishes the promise to end the car tax.

* Eliminates estate tax for working farms and family-owned

businesses.

* Ends the unfair accelerated sales tax collection for

retailers.

* Provides incentives for small businesses to invest.

* Eases the tax burden on military, reservists, and

National Guard families.

* Commits Virginia to participation in the bipartisan,

multi-state Streamlined Sales Tax Project for Internet purchases.

For detailed information on Governor Warner's Commonwealth of

Opportunity budget and tax reform plan, visit www.governor.virginia.gov

<http://www.governor.virginia.gov> or call toll-free 1-888-TAX-REFM

(829-7336) to receive it in the mail.