In the last 20 years, Virginia’s manufacturing sector has declined by 46%.
Given the fierce competition worldwide to attract businesses, state lawmakers are examining whether it makes sense to restructure the Commonwealth’s state and local tax system to remove financial hurdles to doing business here.
Every five years, Virginia requires cities and counties to update plans for development – how and where they’ll grow.
Many communities assume growth is good – and some even offer tax breaks to attract new industries and businesses, but a new report by Charlottesville economist David Shreve and planning consultant Craig Evans suggests that’s not the case if new companies hire people from elsewhere.
That’s because new residents increase the demand for public services, such as education, road construction and maintenance, public safety, water systems, sewers and so on.
Over the last few weeks, Governor McDonnell has been scrutinizing 812 bills sent to him by the General Assembly. Among them is a package of legislation to penalize “possession with the intent to distribute” a legal product. Its goal is to stop the traffickers of contraband cigarettes, who’ve made millions of dollars while the Commonwealth loses revenue.
The Virginia Senate has voted for a transportation-funding bill that increases the gas tax, removes most of Governor McDonnell’s proposals, and allows Northern Virginia and Hampton Roads to raise extra revenue.