RICHMOND, VA – In the wake of the unveiling of Gov. Mark Warner’s “Commonwealth of Opportunity” tax package, small-business owners from across the commonwealth showed no signs of support for tax increases that affect the bottom line of their businesses, according to a survey of members by NFIB/Virginia – the state’s largest small-business advocacy group. A statewide survey of local employers found that 61 percent oppose the overall tax and accountability package put forth by the administration.

“This should be a clear signal to the Warner Administration and the entire Virginia Legislature. What Virginia’s small-business community needs is more economic freedom – not an increased tax burden that stifles opportunity,” said NFIB/Virginia State Director Gordon Dixon. “At a time when businesses are trying to succeed, we should be investing in our economy through job creation and growth that comes from limited taxation at the state level.”

Under the plan put forth by Warner, the state would raise close to $1.22 billion in new revenue to focus on education costs and other needs. Local employers stand to see substantial tax increases across the board, causing them to cut costs elsewhere or pass costs onto consumers. The burden of paying for the additional state revenue will be placed greatly on small and medium size businesses.

A large majority of small-business owners file income taxes on their companies under their own personal income. By increasing the individual rates, businesses will be forced to pay even more money to the state. Those with household taxable income of over $100,000 will be taxed at a new and higher rate of 6.25 percent.

Detailed results of the survey found that Virginia’s small-business owners were overwhelmingly concerned with not only the package as a whole, but also any attempts to raise specific taxes. A resounding 77 percent of those asked oppose any legislation that would expand the sales tax to include business and professional services.

Along with that, employers indicated their opposition to increases in the gas tax to pay for statewide transportation needs. Close to 60 percent said they do not support such an increase. Additionally, 70 percent of business owners surveyed in 2003 support a repeal of the death tax for estates.

“Our members see it for what it is. This measure is, by far, one of the most burdensome tax increases in Virginia history,” said Dixon. “We should not be in the business of balancing the needs of the state on the backs of small-business owners. Our members are looking for the state to be more efficient and responsible without imposing new taxes. They want to see all government agencies – local, state and federal live within their means – just as they do.”