GOP to seek tax relief for families, businesses

BY MICHAEL HARDY
TIMES-DISPATCH STAFF WRITER

House Republicans yesterday promised to fight for tax relief for family-owned businesses and families with children in Virginia's public schools.

They said they will push, at the 2006 legislative session, for the repeal of the state's estate tax and grant a state sales tax "holiday" in August for purchases of school supplies, from clothes to computers.

"Virginia needs a tax system that ensures fairness, fosters a competitive business environment and removes impediments to economic growth," said House Speaker William J. Howell, R-Stafford.

"We will ease the financial burden" on Virginia families and protect farms and small businesses, said Howell, surrounded by almost a dozen lawmakers and several representatives of Virginia businesses.

Neighboring states have granted state-tax-free shopping on school supplies purchased, usually over a week or so before schools open in August.

Stacy McGrath, a mother of three in Hanover County, said she was excited about the promised push for a school-shopping holiday.

"Certain times of the year, like back-to-school time, can be very expensive for families, especially one-income families like ours," she explained yesterday.

"When the amount of money spent on supplies is added to that spent on clothes, some families can experience real hardships at the beginning of each school year," she said.

Del. Ryan T. McDougle, R-Hanover, said the holiday would be "a boon" to Virginia businesses and families with children in schools, from kindergarten to graduate school.

The legislation for the tax holiday failed last year to win support in a House committee, but both gubernatorial candidates support it, according to campaign spokesmen.

Del. John S. Reid, R-Henrico, who sponsored the legislation last year, said the tax holiday would be a week to 10 days each August.

The Republicans and supporters of the tax breaks gathered yesterday afternoon at the downtown Bill's Barbecue. The business struggled to survive, because of a large estate bill after the death of its founder.

Virginia is one of 20 states and one of only three in the South -- that imposes an estate tax.

In 2003 the General Assembly, by a slim margin, failed to override a veto of Gov. Mark R. Warner, who objected that the repeal would unfairly help some very wealthy Virginians.
But this year both gubernatorial candidates -- Republican Jerry W. Kilgore and Democrat Timothy M. Kaine -- support such a measure.