Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, January 16, 1992 TAG: 9201160281
SECTION: VIRGINIA PAGE: B1 EDITION: METRO
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Medium
HOUSE DEMOCRATS WEIGH TAX INCREASES
Democrats in the House of Delegates are considering tax increases and other measures that could raise as much as $144 million over two years, a newspaper reported Wednesday.The Daily Press of Newport News said House leaders have proposed a list of revenue options that includes raising taxes on cigarettes and beer, delaying a tax break for retirees and a repeal of the sales tax on non-prescription drugs, and suspending a tax credit for utilities.
The newspaper obtained a copy of the plan that was presented Monday at a private Democratic caucus.
The plan makes no mention of any general increase in income or sales taxes.
But Gov. Douglas Wilder said Tuesday that legislators, whom he did not name, have proposed to him increasing the sales tax by a half cent to 5 cents per $1.
Wilder's fellow Democrats are considering the options as the governor begins his fight to win legislative approval for a $68 million tax on hospitals, nursing home and other health care providers. The industry - a powerful lobbying force - is fighting the tax, and many legislators have expressed reluctance to go along with Wilder.
Legislators called the list of options considered by the caucus "something to look at" in case Wilder's attempt fails. "We would look kind of silly if it didn't pass and we didn't have an alternative," said one member, who asked not to be identified.
Del. Richard Cranwell, D-Vinton, chairman of the House Finance Committee, said Tuesday he is reviewing a host of tax options that could raise from $20 million to $100 million. Cranwell and other Democrats cautioned that they are not endorsing any specific tax proposal.
The list of possible tax increases was circulated days after public budget hearings that drew hundreds of Virginians.
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