Kaine Targets Small Businesses to Balance Books
In a story that is largely being overlooked, Tim Kaine is attempting to balance the state’s books by doing away with a little known program known as the dealer discount. In exchange for calculating and collecting the tax, businesses are eligible for a partial refund of the tax they collect. Kaine claims that with technology the tax is redundant–what he fails to recognize though is that these businesses are providing a government function. As such, they should be entitled to their share of the money, which doesn’t amount to much but in the se tough times could cost people their jobs. From the RTD:
Anne Kennon, owner of It’s Hip to be Round, a Carytown maternity and children’s clothing store, said her discount was $780.11 in 2007 and $655.60 for 2008.
Kennon, a mother of two, said that if she loses the discount, her real concern is having to cut the hours of part-time employees. Most of her part-timers are Virginia Commonwealth University students trying to make a few extra dollars as they work their way through college.
She also said she’ll have to worry more about expenses, including paying dues to the Retail Merchants Association or the Carytown Merchants Association.
“It makes me have to juggle things I wouldn’t normally have to,” she said.
Fortunately, Delegate Ben Cline is fighting for small business:
“This [proposal] affects a segment of our economy that is already . . . in danger of going under,” said Del. Benjamin L. Cline, R-Rockbridge, chairman of the Conservative Caucus. That group has made defeating the proposal one of its legislative priorities.
“The retail sector is being hit hard and repealing the discount that they get from handling our tax collection for the state amounts to piling on or hitting the industry when it’s down,” he said.
Cheer on Cline, contact your government, and fight with groups like Americans for Prosperity, whose lobby day at the capitol is on February 10th. Click here for details.

