[Presumptive Republican candidate for governor Jerry] Kilgore met with his 31-member task force on regulatory reform and economic development, which recommended proposals that reflect such articles of faith within the GOP as lower taxes and less red tape.
The panel urged, among other things, repeal of the estate tax; tax breaks to jump-start the ailing rural economy; limits on sales and use taxes to promote film and television production, and tax credits to boost research at public colleges and universities.
…Kaine recently rolled out a plan to help small business cope with the escalating cost of employee health care. At the heart of the proposal: a tax credit of up to $500 per employee that would reduce state tax collections by more than $200 million.
The full cost of the Kilgore package, elements of which he will propose to the 2005 General Assembly, could not be immediately determined. However, estate-tax repeal alone – both gubernatorial candidates favor the idea – would cost at least $100 million.
In 2003, Democratic Gov. Mark R. Warner, a multimillionaire, vetoed a rollback of the tax on estates of $1 million or more, saying that it would further weaken the state’s then-fragile finances.
But with the economy rebounding and Virginia amassing a surplus that could exceed $1 billion, the Republican-controlled legislature may face election-year pressure to finally erase the estate tax, which can reach 16 percent.
The Kilgore task force was created in July and is made up largely of business and professional leaders, many of whom have ties to the Republican Party.
The panel also recommended taking steps to ease regulations on small business; provide additional funds to help finance small business in economically distressed areas; extend tax relief for coal companies that mine small seams; and fund training in Internet commerce for mom-and-pop firms in impoverished regions of the state.
Kilgore said in a written statement, “97.7 percent of the businesses in Virginia are small businesses. These businesses employ Virginians and provide the services that give us such a great quality of life. But all too often they are buried under an avalanche of new regulations from Richmond.”
I’d love to know where the “97.7 percent of the businesses in Virginia are small” comes from.