Study: Cut Va. taxes

The rich may be rich and the poor may be poor, but a nonpartisan think tank says there’s a way to eliminate state income taxes on the poorest Virginians while providing as much as a 10 percent tax cut to everyone else.

The Thomas Jefferson Institute for Public Policy on Friday unveiled a plan to restructure Virginia’s tax system – which the group says could generate substantial economic growth.

The nonprofit group’s report recommends slashing certain business taxes and income taxes while expanding the sales tax to currently untaxed services.

“By expanding the current sales tax to most of the industries that do not currently collect it from their end-user individuals, every individual taxpayer can be substantially helped,” said Michael Thompson, president of the Thomas Jefferson Institute.

“The competitive business environment in Virginia can be enhanced, and our state and local governments would not lose a penny.”

The institute, based in Springfield, advocates a philosophy of “limited government, free enterprise and individual responsibility.” Its new economic study, “Tax Restructuring in Virginia: Revenue Neutral Path for Improving Virginia’s Economy,” was prepared by Chmura Economics and Analytics, a Richmond consulting firm.

“Basically, this is a collaborative team effort,” Xiaobing Shuai, Chmura’s senior economist, told reporters during a telephone news conference. “What Chmura Economics did in this study is go through probably 100-plus sales tax exemptions, and then try to estimate the value of those sales tax exemptions.”

A computer model developed by economists at the Beacon Hill Institute, an independent public policy foundation at Suffolk University in Boston, tested various scenarios for overhauling Virginia’s tax system.

Nine economic scenarios were put through the tax model.

“We took Chmura’s numbers, which is a static model that doesn't account for the positive economic benefits of the tax restructuring, and put them in our dynamic model and ran the nine scenarios that you see in the study,” said Paul Bachman, director of research at Beacon Hill Institute.

“The model resolves for new values, and we get new values for jobs, investment and disposable income. What we are doing, in economic terms, is shifting some of the tax burden away from businesses and households in some scenarios and putting it onto an untaxed service sector.”

Virginia currently exempts almost all services, from haircuts to auto repair, from sales taxes.

A major goal of the Thomas Jefferson Institute’s plan is to eliminate three taxes that business owners consider onerous and an impediment to creating jobs:

• The Business Professional Occupation Licensing tax, which is levied on gross receipts.

• The Machine and Tool tax, which is levied on equipment a business buys.

• The Merchants Capital tax, which is levied on a business’ inventory.

Virginia businesses must pay those taxes regardless of whether they make a profit. Thompson called them “job-destroying taxes,” saying they discourage businesses from expanding and hiring more employees.

The Thomas Jefferson Institute initiated its study to see if it was possible to eliminate those taxes and restructure the state’s tax system in a revenue-neutral manner that could improve Virginia’s economy.

The nine scenarios outlined in the study range from a relatively small impact to a radical overhaul.

The first scenario, for example, would simply eliminate the BPOL, M&T and Merchants Capital taxes and make up the revenue by extending the sales tax to certain currently untaxed services. The study said this would create 900 private-sector jobs.

Other scenarios suggested not only eliminating the three business taxes but also eliminating the lowest income tax bracket and cutting other personal income tax rates. Under these scenarios, the sales tax would be expanded to more services. In some scenarios, the sales tax would be cut, too. (It’s currently 4 percent for the state and 1 percent for local government.)

The scenarios did not specify exactly what types of services would be taxed. The study acknowledged that taxing medical bills, health insurance premiums, private school tuition and financial fees probably wouldn’t fly.

The more extensive scenarios would create at least 40,000 jobs, the study said.
Bail Bonds Chesterfield VA

Man struck and killed in western Henrico hit-and-run

A 24-year-old man died after being struck by a hit-and-run driver in western Henrico April 23.

The victim, Emmanuel Isaiah DeJesus, was found lying on the side of the roadway at about 10:25 p.m., April 23 near Patterson Avenue and Palace Way. He was transported to a local hospital, where he was pronounced dead. > Read more.

Henrico woman earns national pharmacy fellowship


Henrico County native Nilofar “Nellie” Jafari recently was named the American College of Clinical Pharmacy-American Society of Health-System Pharmacists-Virginia Commonwealth University Congressional Healthcare Policy Fellow for 2017-18.

Jafari is a 2007 graduate of J.R. Tucker High School.

Pharmacists selected for the fellowship have the opportunity to gain real-world insight into health care policy analysis and development via immersion in the congressional environment. > Read more.

Section of Lauderdale Drive to be closed April 26 for drainage improvements


The westbound lanes of Lauderdale Drive will be closed between John Rolfe Parkway and Cambridge Drive on Wednesday, April 26 for drainage improvements.

The lanes are expected to be closed from approximately 9 a.m. to 4 p.m. Motorists will be detoured from westbound Lauderdale onto John Rolfe, Gayton Road and Cambridge before being directed back onto Lauderdale. > Read more.

Henrico Police to host prescription drug take-back event April 29


The Henrico County Division of Police and the U. S. Drug Enforcement Administration will participate in the nationwide Prescription Drug Take Back Program Saturday, April 29. The event will take place from 10 a.m. to 2 p.m. at the Henrico County Training Center, 7701 East Parham Road, next to the Public Safety Building.

The program is free and anonymous. Unused or expired pills, patches and liquid prescriptions (in their sealed original container) will be accepted. Needles and sharp items will not be accepted. No questions will be asked. > Read more.

Henrico home sales rose in March

Parts of the greater Richmond real estate market experienced an increase in the number of homes sold during the month of March, according to Long & Foster.

The number of homes sold increased in much of the Richmond region in March compared to year-ago levels. In Henrico County, the number of homes rose by 16 percent. Median sale prices varied in the Richmond region in March when compared to the same month last year. In both Hanover and Henrico counties, the median sale price rose by 10 percent. > Read more.
Community

YMCA event will focus on teen mental health


The YMCA, in partnership with the Cameron K. Gallagher Foundation and PartnerMD, will host a free event May 2 to help parents learn how to deal with teen mental health issues. “When the Band-Aid Doesn’t Fix It: A Mom’s Perspective on Raising a Child Who Struggles” will be held from 6:30 to 8 p.m. at the Shady Grove Family YMCA,11255 Nuckols Road. The event will focus on education, awareness, and understanding the issues facing teens today. > Read more.

Villa’s Flagler Housing wins national NAEH award


St. Joseph's Villa’s Flagler Housing & Homeless Services was one of three entities to earn the National Alliance to End Homelessness' Champion of Change Award. The awards were presented Nov. 17 during a ceremony at the Newseum in Washington, D.C.

NAEH annually recognizes proven programs and significant achievements in ending child and family homelessness.

Flagler completed its transition from an on-campus shelter to the community-based model of rapid rehousing in 2013, and it was one of the nation's first rapid re-housing service providers to be certified by NAEH. > Read more.
Entertainment

Restaurant Watch


Find out how your favorite dining establishments fared during their most recent inspections by the Virginia Department of Health. > Read more.

 

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The MathScience Innovation Center will celebrate its 50th anniversary with "A Night of Learning" from 6:30 p.m. to 9 p.m. at the MSiC campus, 2401 Hartman Street, Richmond. The event will include "Science on a Sphere" demonstrations (an educational tool on loan from NASA), STEM demonstrations, a silent auction and refreshments. Individual tickets are $25 each, and couples' tickets are $40. Proceeds will benefit the center's programs and help fund technology upgrades. To purchase tickets, visit http://www.mymsic.org. Corporate sponsorships from $100 to $5,000 are available as well. For details, call 343-6525. Full text

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