RICHMOND, Va. (AP) — You're going to hear a lot over the next three or four months about how Virginia, through people you elected, takes and spends your tax money. It's a complicated perennial process already well under way, dominated by professionals and insiders who communicate in a sort of trade jargon that, to the ordinary Virginia taxpayer, might as well be Mandarin or Urdu.
It can be boring, it can be dense and time-consuming, and it will never make the best-seller list. But it bears watching — perhaps even your input — because there are some very real consequences for Virginians on every rung of the economic ladder.
Upcoming in official-sounding legislative committee meetings that you're entitled to attend will be proposals that could influence how much you pay for college, what Medicaid benefits you get, how much you pay for gas, and whether you pay tolls on your way to and from work.
And that's just the tip of the iceberg.
What's next is not for insiders. If you make your living in or around Capitol Square legislating, lobbying or working for those who do, skip to the crossword puzzles, sports, Facebook or whatever else strikes your fancy.
If you're like most people, so busy with everyday living that tax policy and its effect on your home only crosses your mind every mid-April, read on.
You pay taxes to three levels of government: your local government, largely in the form of property taxes on real estate or personal automobiles you own; the federal government, chiefly income taxes due every April 15; and to the commonwealth of Virginia.
What gets taxed and the rate you pay, at every level, is decided exclusively by a legislative body: city councils or county boards, Congress or the General Assembly of Virginia. No mayor, governor or president can unilaterally increase your tax rate.
For state government, the legislative budget season ramps up in mid-November when the powerful General Assembly committees that vet spending and taxation bills gather for a couple of days for a round of briefings from economists and other experts about issues before them in the upcoming round of budgeting and how well the economy is performing. Those committees — House Appropriations and Senate Finance — held their two-day retreats two weeks ago in Suffolk and Charlottesville, respectively.
The economic outlook, lawmakers were told, is guarded at best but uncertain because of the ongoing federal debt reduction debate known as the "fiscal cliff." Unless Congress and the White House agree on a menu of spending cuts and revenue increases by year's end, all federal income taxes increase and automatic spending cuts will decimate military and non-defense spending. Nowhere is the issue as critical as Virginia, which has the highest rate of per capita federal spending in the nation principally because of Virginia's vast military and defense-contracting interests.
That weighs heavily now on the mind of Gov. Bob McDonnell, who is huddling with his own economists and faces a Dec. 17 deadline for presenting legislators with mid-point adjustments for the second year of Virginia's two-year budget that took effect July 1. There are five public hearings Jan. 4, the Saturday before the legislature convenes, in Manassas, Middletown, Virginia Beach, Roanoke and Richmond. All are public.
The 8 Best Natural Gas Stocks. Find Out How to Invest.