Tag Archives: Stephen D. Haner

Killing the Digital Goose for Its Golden Egg

Posted on March 4, 2024 by | 13 comments

Jared Walczak of the Tax Foundation

By Steve Haner

The last time the General Assembly made a similar mistake with the Virginia tax code was 20 years ago. It was 2004, and the complaints that business was not “paying its fair share” came from Republicans in the House. They introduced and quickly pushed through a bill that stripped sales tax exemptions from multiple categories of business. Sound familiar?

Twenty years later the only thing that has changed is that the bad idea is now coming from Senate Democrats. The anti-business rhetoric sounds the same. The sales or use taxes of up to 6-7% they seek to impose on business-to-business digital transactions (goods and services) will reach into every Virginia company, large and small. It will simply be passed along in higher prices. The only winners are their out-of-state competitors who have no such taxes in their states. Continue reading →

13 Comments

Posted in Budgets, Business and Economy, General Assembly, Taxes

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A Never Again Trumper’s Take on Haley’s Event

Posted on February 29, 2024 by | 155 comments

Nikki Haley thanks Virginia campaign chair Susan Allen for her introduction this afternoon.

By Steve Haner

We’ve already voted, but my wife and I were in the Henrico County crowd today to hear Nikki Haley make her case for support in Tuesday’s Virginia GOP primary. Early voting continues through Saturday, but if you wait until Tuesday and come to Henrico’s Maybeury Elementary, I’ll be there asking which ballot you want. Identify yourself as a reader and I may sneak you two….

Remember, it is an open primary. No party registration is required, a fact that clearly irritates former President Donald Trump. He whined about it on WRVA this morning as he was interviewed by adoring host John Reid. But isn’t the point picking a candidate who can win in the general election, not just a party primary? Independents decide elections. Continue reading →

155 Comments

Posted in Elections

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Governor May Get Two Different Nuclear Bills

Posted on February 26, 2024 by | 38 comments

Small modular reactor illustrated

By Steve Haner

A Virginia Senate committee voted Monday to approve a House of Delegates bill designed to finance a small modular nuclear reactor in Southwest Virginia, contradicting its own earlier vote for a much broader bill that had statewide application.

Two different bills on the same topic might now pass the Virginia Senate.  If the House does the same thing with the Senate bill, now alive in front of its Labor and Commerce Committee, Governor Glenn Youngkin (R) could have two very different bills to choose from. Continue reading →

38 Comments

Posted in Energy, Environment, General Assembly, Regulation, Utilities

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A Veto-Proof Local Tax Hike Nearly Approved

Posted on February 24, 2024 by | 58 comments

Virginia sales tax rates: Light blue, 5.3%, green, 6%, dark blue, 6.3% and yellow 7%. All but the localities in dark blue would be allowed to add another 1% under this pending legislation. Click for larger view.

By Steve Haner

A bill likely to produce $1.6 billion or more in local sales tax increases is moving through the General Assembly with enough bipartisan votes to block any veto from the Governor, but differences remain between the House of Delegates and Senate versions. Continue reading →

58 Comments

Posted in Budgets, Business and Economy, Education (K-12), General Assembly, Taxes

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Democrats Lose Concerns About Taxing the Poor

Posted on February 20, 2024 by | 54 comments

Econ 101 Quiz. Virginia Democrats are poised to raise the sales tax 1% in most localities, add digital products to the taxed services, and create a new payroll tax. How will those changes impact that chart? Click for larger view.

By Steve Haner

A piece of Republican Governor Glenn Youngkin’s tax package has survived after all, but only the part that increases the sales tax base to collect about $1 billion or so more per year from citizens. Democrats who recently complained that sales tax increases were unfair to the poor are suddenly embracing them. 

On Sunday, both the Virginia Senate and the House of Delegates budget committees approved Youngkin’s budget language to impose the sales tax on a host of digital products and services, adding 6% or more to the prices of downloads, streaming services, and online data storage. The full range of newly taxed transactions is not yet clear. 

The Senate then increased the gain to the treasury by making sure the new taxes will also cover business-to-business transactions, something the governor sought to exempt and something which is just passed along in higher prices.  

The risk of including that tax policy initiative inside Youngkin’s introduced budget bill was obvious from the start, and General Assembly Democrats have now pounced on the opportunity to capture that revenue. The tax increase is now wrapped in with all the state spending for two years, a hard bill to vote against.   Continue reading →

54 Comments

Posted in Budgets, Business and Economy, General Assembly, Taxes, Uncategorized

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Floyd Judge Ponders Order to Return RGGI Tax

Posted on February 19, 2024 by | 26 comments

The states in the Regional Greenhouse Gas Initiative tax compact before Virginia withdrew.

By Steve Haner

A circuit court judge in Floyd County may soon order Virginia to rejoin the Regional Greenhouse Gas Initiative and to reimpose the related carbon tax on Virginia’s electricity consumers.

Judge Kenneth “Mike” Fleenor Jr. ruled earlier this month that a suit seeking reinstatement of RGGI could continue and held a hearing on February 5 on the question of “immediate relief.”  The plaintiff, a group of energy efficiency and insulation contractors using the RGGI tax dollars for their programs, has claimed it will suffer immediate and irreparable harm unless Virginia returns to collecting a carbon tax on coal and natural gas used by utilities. Continue reading →

26 Comments

Posted in Courts and law, Energy, General Assembly, Taxes, Utilities

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Four Major Progressive Goals Still Advancing

Posted on February 15, 2024 by | 47 comments

By Steve Haner

The aggressive progressive agenda working its way through the 2024 Virginia General Assembly has lost some steam at the halfway point, but at least four of the major Democratic goals discussed earlier are still advancing.   

The two bills which will have the greatest impact on the Virginia economy are the proposed minimum wage increase and a new state-managed employee benefit for workers taking time off under the Family and Medical Leave Act. The two other bills the Democratic majorities in both the Virginia Senate and House of Delegates have now approved are a major expansion of procurement preferences for minority vendors and allowing class actions in civil litigation.   Continue reading →

47 Comments

Posted in Business and Economy, Courts and law, General Assembly, Labor & workforce

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If Assembly Wants SMR Bill, Then Fix It

Posted on February 13, 2024 by | 79 comments

By Steve Haner

This is progress. Only twenty members of the Virginia Senate voted Tuesday to ignore a key tenet of utility ratemaking and put utility stockholders and profits ahead of consumer protection. Usually when the utilities persuade the General Assembly to do that to Virginia consumers, they get a bigger vote margin than 20-16.*

Senate Bill 454 allows Virginia’s two monopoly electricity providers to spend undetermined millions of dollars on planning and developing small modular nuclear reactor projects and get it all paid by consumers, with a profit margin. But there is no guarantee any such plants will ever be built, and no other power plants built in Virginia have gotten this kind of up-front financial guarantee before the State Corporation Commission ruled them in the public interest. Continue reading →

79 Comments

Posted in Business and Economy, Consumer protection, Energy, General Assembly, Regulation, Utilities

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Will Dominion Fool Us Again with SMR Cost Bill?

Posted on February 9, 2024 by | 63 comments

Artist rendering of a NuScale small modular reactor plant, proposed but now not being built in Idaho.

By Steve Haner

Fool me once, shame on you.  Fool me twice, shame on me.  A utility-backed bill to stick electricity ratepayers with the high-risk costs of developing small (modular) nuclear reactors, approved by a Senate committee Friday, is a “fool me twice” example.  Shame on the General Assembly if it falls for it. Continue reading →

63 Comments

Posted in Consumer protection, Energy, General Assembly, Utilities

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Only Tax Increases Still Pending at Assembly

Posted on February 7, 2024 by | 64 comments

Gov. Glenn Youngkin

By Steve Haner

Governor Glenn Youngkin’s package of proposed tax changes is now stalled in both the Virginia Senate and the House of Delegates. A House subcommittee spiked it Feb. 5 and then dashed other bills imposing major tax increases on higher income Virginians. A full Senate committee refused his bill on Feb. 6.

Of course, anything is possible until the General Assembly adjourns in March, but it seems only two major tax increase proposals are still viable in the 2024 Assembly.  

The first would allow all Virginia cities and counties to add an additional 1% to the sales and use tax within their borders for school spending, if a local referendum approves it. Current law has allowed that in eight counties and one city but this bill would expand that to the entire state. It is advancing in both chambers. 

The second, not usually discussed as a tax hike, is the proposal for a new state trust fund to provide weekly payments to employees taking family or medical leave from work. The bill calls for a payroll tax to fund the benefits but does not specify a tax rate or indicate just how much of an employee’s wage would be taxed. The Virginia Employment Commission based its fiscal estimates on a tax of just under 1%.  

Bills creating this new state-paid family and medical leave benefit program are now in the budget committees of both chambers, and they have until February 18 to reveal their budget amendments. This program could easily become a $1-2 billion annual entitlement. The underlying federal Family and Medical Leave Act (FMLA) provides no income replacement, just up to 12 weeks of job protection for covered absences. Continue reading →

64 Comments

Posted in General Assembly, Taxes

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Stratford Hall Tax Exempt Status Preserved

Posted on February 6, 2024 by | 10 comments

Stratford Hall in Westmoreland County

The real and personal property tax exemptions for the historic colonial plantation Stratford Hall, the ancestral home of the Lees of Virginia, have been spared by the Virginia Senate. It once again amended a bill stripping tax exemptions from other organizations with connections to the Southern Confederacy, removing the popular tourist attraction that was home to two signers of the Declaration of Independence.

Senate Bill 817 then went on to pass 23-16, with two Republicans joining the 21 Democrats in favor. The sponsor, Senator Angelia Williams Graves (D-Norfolk), did not explain in her brief floor presentation why she relented on imposing local property taxes on that one facility but not the others. There was no debate on the bill, pro or con, before the vote for passage this afternoon. Continue reading →

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Posted in Culture wars

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Rare SCC Deadlock Sinks Dominion’s Energy Plan

Posted on February 4, 2024 by | 52 comments

By Steve Haner

The year long debate over Dominion Energy Virginia’s proposed integrated resource plan, which threw climate catastrophe activists into a frenzy because it added a new natural gas plant, is ending with no decision.  Two State Corporation Commission judges split on whether to approve it, basically a win for the anti-fossil fuel forces.

In December, a hearing officer assigned to study the case had ruled that Dominion’s plan should be rejected because it included the expansion of gas generation, when the anti-natural gas forces in the General Assembly had passed laws against that 2020 and 2021.  Those laws did include provisions for maintaining or adding fossil fuel generation on the basis of a threat to reliability, but only under limited circumstances. Continue reading →

52 Comments

Posted in Business and Economy, Energy, General Assembly, Regulation, Utilities

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Mea Culpa, Bills Targeting UDC Should Fail

Posted on February 2, 2024 by | 77 comments

Is the historical homestead of the Lees of Virginia, Stratford Hall, being stripped of its tax exemptions just because of its connection to one Lee in particular?

By Steve  Haner

Racial animus and revenge are always bad policies. It is now very clear those are the motivations for the bills advancing to strip tax exemptions from legitimate historical and charitable institutions, simply because of connections to the Southern Confederacy. They should die.

The beeping sound you hear is me backing up my truck to prepare for a 180- degree turn. My initial reaction to House Bill 568 was to not really care, but that was based on a cursory reading of the fiscal impact statement. I also forgot the lessons of 40 years of watching the sausage factory and failed to read the bill to the end. Continue reading →

77 Comments

Posted in Culture wars, General Assembly, Taxes

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NJ Greenmailed Into Massive Wind Energy Costs

Posted on February 1, 2024 by | 9 comments

By Steve Haner

New Jersey just agreed to two ocean wind projects with astronomical guaranteed power prices. The price demanded and received by independent competitive suppliers shows there is at least some upside to the utility-owned, captive ratepayer-financed model behind Dominion Energy Virginia’s massive offshore wind facility.

In late 2023 the news was full of reports that independent wind developers were pulling out of various projects along the East Coast because the projects were no longer economically viable. Those who thought the future of the industry was in jeopardy were wrong. Continue reading →

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Posted in Energy, Environment, General Assembly, Regulation, Utilities

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The Aggressive Progressive Democratic Agenda

Posted on January 31, 2024 by | 34 comments

From tiny acorns grow the mighty oaks of government.

By Steve Haner

The Democrats now running Virginia’s General Assembly are not just more progressive, but far more ambitious than their predecessors. To fully understand how ambitious you must compile the entire list of progressive bills advancing in the 2024 session and consider their total impact on the cost of living and cost of doing business in the commonwealth. Individual news stories miss the big picture.  

The push to radically regulate Virginia’s energy future discussed earlier is being mimicked with equally aggressive legislation throughout the rest of our economy. None of the ideas below are new, and most are already in law in places like California, New York or other more liberal states. What has changed is that when proposed in the past, they usually were rejected in Virginia on a bipartisan basis. Democrats now march in lockstep.  

The Assembly is still in its first phase and adjournment is set for early March. Which of the following will pass remains to be seen, and in many cases, amendments are already appearing. Most may also face gubernatorial veto or amendment, but that just underscores that Virginia is only one election of one official away from total transformation.   

In the case of the bills to increase the minimum wage (here and here), Democrats are simply building upon what they did during their last period of control. But if they succeed in setting future wage increases to automatically grow with inflation, the impact just builds and builds. Classes of employees reasonably exempted from the law currently, such as farm workers, may now be covered, as well.   

Likewise, the previous Democratic majority also took the first steps toward collective bargaining for limited groups of local employees, but only after elected local officials gave a green light to negotiate a contract. This year’s bill expands the right to bargain to almost all local and now most state employees, with no vote needed by a school board or city council. It was revealed that the most recent version does conveniently exempt employees of the General Assembly, however. Continue reading →

34 Comments

Posted in Business and Economy, Courts and law, Economic development, Energy, Environment, General Assembly, Public employee unions, Regulation

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