A believer in fantasy commented the other day that the recent tax law changes proposed by Gov. Bob McDonnell and passed by the Virginia General Assembly would save him money at the gas pumps in the old Dominion.
“The governor cut out the state gas taxes,” he said. “That means paying less for gas.”
Hated to burst his bubble, but I explained to him that the tax law changes would not really reduce prices at the gas pump but would also drive up the taxes he pays in other areas.
While the tax law changes do wipe out the state taxes paid at the retail level for gas, it raises taxes paid at thole sale level, which means the taxes paid by those who buy the gas to sell to you will pay for the fuel.
And they will pass that increased cost on to those of us. The changes also raise taxes in other areas — including the state sales tax — which means more taxes for everyone.
In other words, another political sleight-of-hand designed to raise more money in taxes for the Commonwealth.