Governor Tim Kaine will unveil his budget proposal that he hands off to Governor-Elect McDonnell on Friday. Virginia faces a $3.5 Billion shortfall over the next 2 years. One place this money can be made up in part is to repeal the car tax. Currently, Virginia is picking up the tab for about a billion dollars of this money because it reimburses localities for the difference so there is no local shortfall.
Few Republicans are happy with the car tax. They want it eliminated completely. Democrats supposedly want it reinstated because of the funds it robs from the state. Most people are just glad to be paying a couple hundred dollars tax rather than close to a thousand dollars per year per car.
