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Virginia governor wants tax overhaul

ALEXANDRIA, Va., Nov. 24 (UPI) -- Virginia's Gov. Mark R. Warner wants to overhaul his state's tax structure -- on who and what gets taxed -- but not to increase the net amount collected.

Some people close to the discussion on Virginia's taxes say the governor will propose raising income taxes on the rich while giving more breaks to low-wage workers, the Washington Post reported.

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The governor, a Democrat, also wants to eliminate estate tax bills for small business owners and farmers.

He wants to increase the 2.5-cent tax on cigarettes that is expected to raise $150 million more in tax revenue for the state each year and allow counties to tax cigarettes even more.

Warner also wants to raise the state's 4.5-cent sales tax but sources said he does not want to impose a sales tax on services offered by lawyers, accountants, barbers or dry cleaners, a new tax some lawmakers favor.

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