The City of Winchester is considering increasing its local meals tax in restaurants from 5-percent to 7-percent, effective in July 2012. Couple that with the existing Virginia sales tax, and folks who eat out in the city would be paying a total of 12-percent in taxes.
Americans for Prosperitys Virginia chapter opposes the increase.
AFP-Virginia state director Trixie Averill issued the following statement:
We are struggling through the worst economic times in living memory, and the Winchester City Council thinks its a good idea to raise taxes on consumers and therefore endanger small businesses which are already struggling to survive. This is like throwing gasoline on a fire.
If the taxes go up, families trying to make their monthly budgets would be less likely to go out for a meal if the built-in costs are already higher. And the local restaurants trying to attract customers will be further strapped. Its hard enough to operate a small business without government continually ramping up the costs of simply existing.
Local government may see dollar signs when they think of raising taxes, but in the real world, these increases mean a familys bottom line, and in many cases, the viability of jobs in those businesses affected.