Virginia Governor Bob McDonnell has announced a controversial proposal to repair the state’s transportation funding issues. His plan would make Virginia the first state to get rid of its gas tax, and would increase the sales tax from 5% to 5.8%. The additional revenue collected from the increased sales tax would go entirely to transportation needs, split between maintenance and construction. McDonnell would also like to allocate a greater percentage of sales tax revenue towards transportation, an issue Democrats say will take funding away from schools and other public projects.
This plan, says McDonnell, will generate hundreds of millions of dollars needed to fund highway and road projects in Virginia.
