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Ken Plum: A frugal, well-run government

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A slick postcard mailed by the Republican Party of Virginia arrived in the mailboxes of many voters in my district last week just as many people were completing their tax forms. In the standard Republican charge against Democrats, the card text read that I wanted “to take even more” of my constituents’ tax money. The card is one of a series with an earlier card suggesting that I had served too long. Against that background I am continuing my column series that periodically compares Virginia with other states in various categories and specifically in taxes during the time I have been in office.

Once again I will draw heavily upon the work of the widely acclaimed, non-partisan Joint Legislative Audit and Review Commission (JLARC) publication, “Virginia Compared to the Other States,” 2011 edition, available at jlarc.virginia.gov. The amount of revenue received by Virginia government comes from taxes (51%), charges and miscellaneous sources such as college tuition, state hospital charges, and interest earnings (29%), and the federal government (19%). According to the JLARC publication taking data from the U.S. Bureau of Economic Analysis, Virginia state and local revenue as a percentage of personal income is 46h lowest among the states. The 50-state average is 22.9 percent; Virginia is at 17.0 percent. Only Connecticut at 16.9, New Hampshire at 16.8, South Dakota at 16.7, and Maryland at 16.7 percent are lower than Virginia. Virginia has ranked in the bottom five states in state and local revenue as a percentage of personal income since 2004.

Virginia’s per capita state revenue at $4,648 is 37th lowest among the states for FY 2008, the most recent year for which comparative data are available. The national average is $5,939. Per capita state revenue in Virginia decreased by almost $1,500 in 2008 compared to 2007. During that period of time the state’s rank went from 32nd to 37th lowest. Per capita state taxes at $2,361 is 31st lowest among the states and decreased from 2007 to 2008.

Virginia’s motor fuel excise tax per gallon at 17.5 cents is 37th lowest among the states. The last time the gas tax was changed was in 1986. The 50-state average for state gasoline taxes is 20.9 cents. The federal gas tax collected in all states is 18.4 cents per gallon. As anyone can detect from riding on Virginia roads, our per capita road expenditures is $633, 42nd lowest among the states, while our state-maintained highway system of 58,000 miles is the third highest in the nation.

The details on Virginia’s taxes demonstrate why the state is considered the best managed in the Nation. While this information will not fit on a slick postcard, it is essential to an understanding of our state and its government of which I am pleased to be a part.

Ken Plum serves in the Virginia House of Delegates.

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