Block · one region of the page, as the scanner read it. It may hold a whole story, part of one, several, or an advertisement; stitching blocks into articles is the next step. Text is supplied OCR.
Page 3 · column 1 of 4 · from the scan, no model involved
By MARY K. BLEWITT Arundel Newspapers Richmond Bureau RICHMOND — Reaction to Gov. Gerald L. Baliles’ opening remarks to the Virginia General Assembly last week followed party lines, and one Republican spokesman called the governor’s tax reform plans a “fraud.” Even fellow Democrats were uncertain how to 1 take the Baliles package. The governor threw a curveball to the 1989 General Assembly Jan. 11 with his surprise proposal to grant localities the power to collect a surcharge on 1 the state income tax. The tax would help resolve transportation problems suffered in areas throughout ‘ Virginia, he said, notably Northern Virginia and the s Tidewater area. * ; / Ji ; Gov. Baliles proposed that cities and counties be permitted to levy a local surcharge of up to one perJ . cent on the state income tax. The tax, said Gov. Baliles, must first be approved by the voters; however, funds raised by this tax must be dedicated to local , transportation needs. The tax could raise up to $213 million yearly for Northern Virginia. However, some individual tax bills could go up by 20 percent by increasing the state income tax rate from five percent to six percent un1 der the plan. State Sen. Charles L. Waddell, D-33rd District, said after the speech that he supports the proposal. “ He said the local tax would generate the revenue needed and was a fair method of raising funds. 4 ( , “All of the revenue generated would be spent in the localities for their transportation needs. It would not come to Richmond, where we would lose about 20 ' percent,” said Sen. Waddell, of Sterling. Del. Ken Plum, D-36th District, agreed that taxing localities was more efficient. ‘Taxing the state is no longer practical. We get back fewer dollars than . we spend,” said Del. Plum, of Reston. Several options, including a gasoline tax, a halfcent increase in sales tax and impact fees, have been ' ‘ discussed by members of the General Assembly for relieving the transportation crunch particularly felt in Northern Virginia and Hampton. • * But legislators admit there is little consensus among them. Nevertheless, there is a cloud of doubt 1 hanging over the State Capitol as to whether the gov' emor’s proposal will fly. “I don’t think it will pass the General Assembly,” said Del. Andy Guest, R-31st District, who represents Rappahannock County. “I’ve heard no request from localities to date,” said the Front Royal delegate, who is one of four Republicans seeking the GOP nomination for governor. “If this fails, what do we have to fall back on,” *- said freshman Del. Linda Rollins, R-32nd District, expressing a concern of many. h_
91.5%