|
The
Warner Tax Plan
Impact
of proposed changes to General Fund (in $
millions) |
| |
FY
2004
|
FY
2005
|
FY
2006
|
FY
2007
|
FY
2008
|
|
Individual
Income Tax
(Jan.
1, 2005)
|
| Raise
the personal and dependent exemption from $800 to
$1,000 |
0 |
-29.3 |
-56.2 |
-55.5 |
-54.9 |
| Raise
the standard to $4,000 single, $8,000 married,
$4,000 separate |
0 |
-54.2 |
-104.5 |
-104.4 |
-103.7 |
| Increase
the filing threshold to $7,000 single, $14,000
married, $7,000 separate |
0 |
-2.3 |
-4.5 |
-4.7 |
-4.8 |
| Expand
the 3% bracket to $7,000 and 5% bracket to $20,000 |
0 |
-89.0 |
-171.2 |
-170.3 |
-169.1 |
| Add
a top bracket of 6.25% on taxable income above
$100,000 |
0 |
96.6 |
195.9 |
215.5 |
235.6 |
| For
filers who are 65 on or after January 1, 2005,
adjust the $12,000 age deduction based on income. (1) |
0 |
1.6 |
6.4 |
9.7 |
13.7 |
| Allow
$6,000 age deduction only for those who are 62 by
January 1, 2005 |
0 |
7.6 |
28.6 |
42.9 |
44.4 |
| Conform
to the provisions of the Military Family Relief
Act (2) |
-2.6 |
-2.4 |
-2.0 |
-2.1 |
-2.1 |
|
|
|
|
|
|
| Sales
Tax |
| Increase
the sales tax on non-food items by 1% (July 1,
2004) |
0 |
727.1 |
832.6 |
869.5 |
908.8 |
| Reduce
the sales tax on food by 1 percent (July 1, 2004) |
0 |
-101.2 |
-113.2 |
-116.2 |
-199.2 |
| Reduce
the sales tax on food by 0.5% (July 1, 2005) |
0 |
0.0 |
-51.9 |
-58.1 |
-59.6 |
| Net
impact |
0 |
625.9 |
667.5 |
695.2 |
650.0 |
|
|
|
|
|
|
|
Corporate
Income
(Jan. 1, 2004)
|
| Eliminate
the income tax loophole for intangible holding
companies |
0 |
34.0 |
22.4 |
23.2 |
24.1 |
| Eliminate
the "nowhere income" loophole (3) |
0 |
10.6 |
7.3 |
7.5 |
7.7 |
|
|
|
|
|
|
| Other
Business Taxes |
| Conform
to federal tax provisions which allow businesses
to expense up to $100,000 for purchases of
equipment and similar goods (Dec. 31, 2003) |
-11.7 |
-11.2 |
-5.6 |
6.0 |
6.0 |
| Require
that "pass through entities" file an
annual information return with the Department of
Taxation identifying their owners (Jan. 1, 2004) |
0 |
2.0 |
6.0 |
7.9 |
7.9 |
| Eliminate
the requirement that businesses with more than
$1.3 million in annual sales accelerate their
payment of sales taxes each June (effective with
June payment, 2005) |
0 |
-181.0 |
0 |
0 |
0 |
| Net
impact of corporate income and other business
taxes |
-11.7 |
-145.6 |
30.1 |
44.6 |
45.7 |
|
|
|
|
|
|
| Cigarette
Tax (July 1, 2004) |
| Increase
cigarette tax by 22.5 cents per pack, dedicated
for health care |
4.0 |
146.5 |
145.8 |
143.8 |
143.8 |
|
|
|
|
|
|
| Estate
Tax (Jan. 1, 2004) |
| Provide
a full exemption against the estate tax for all
estates valued at $10 million or less, all closely
held businesses, and all working farms |
0 |
-50.9 |
-63.3 |
-53.3
|
-50.3 |
|
|
|
|
|
|
| Personal
Property Tax |
| Increase
the reimbursement percentage for personally owned
vehicles assessed at $20,000 by 7.5% per year,
subject to the current revenue triggers. |
0 |
-25.8 |
-130.8 |
-248.9 |
-378.9 |
|
|
|
|
|
|
| Net
impact |
-10.3 |
481.6 |
546.2 |
515.8 |
453.1 |
|
(1)
For single filers, the age deduction will be
reduced by $1 for every $2 above $50,000, and be
phased out completely for those with incomes above
$74,000. For married couples where both are 65,
the age deduction will be reduced by $1 for every
$2 above $75,000, and be phased out completely for
income above $123,000.
(2)
The Military Family Relief Act allows military
families to exclude the gain on the sale of a home
owned for less than two years, and allows National
Guard and reservists to deduct up to $1,500 for
overnight travel on military duty, effective Jan.
1, 2004.
(3)
This measure ensures that profits on products
shipped from Virginia are taxed in Virginia,
unless they are taxed in another state, effective
Jan. 1, 2004.
Source:
Secretary of Finance
|
