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Results tagged “Budget”

May 16, 2013

The Washington Post editorializes, "IF HE'S ELECTED governor of Virginia this fall, Ken Cuccinelli II (R) promises $1.4 billion (at a minimum) in state tax cuts, though he neglects to explain how he would do so without reducing funding for services that rely on state government. Little noticed but also damaging, Mr. Cuccinelli's 'plan' -- so far, it's just a one-page press release -- would likely force counties and cities to increase local real estate taxes. Where else could they turn to replace some $900 million in locally imposed business taxes that Mr. Cuccinelli also wants to eliminate?"

Progressive Point: The state budget has real life impacts on Virginia families. Ken Cuccinelli's one-page tax "plan" is the same backwards approach pushed by Mitt Romney and Bob McDonnell.  Virginia has tried a "cuts-only" budget. It cut programs for poor,  needy families and seniors, community schools, health care, and social services.

Cuccinelli's budget plan would hurt middle class families while big business continues to get ahead. Working Virginians know these hard economic times require a balanced approach that serves all members of our community--not just campaign contributors. The truth about the cuts-only approach? The cuts only hurt Virginia families.

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  • Via the Washington Post:
    • Ken Cuccinelli's tax plan "would starve the state of the resources it needs to fund public schools, state colleges and universities, public safety, mental health programs and state parks. Somehow, he would slash $1.4 billion in taxes -- about 8 percent of the state's annual tax collections -- but hold revenue steady. It's economics reduced to magic."

    • "Already, Virginia's tax code is highly regressive. The personal income tax, which accounts for about two-thirds of state revenue, is a flat 5.75 percent for everyone making more than $17,000 a year. For the sake of fairness, the wealthiest Virginians should be asked to do more. By cutting personal income taxes, Mr. Cuccinelli would ask them to do less."

    • "His proposal assumes that Virginians are overtaxed and in need of relief. In fact, Virginia is one of the wealthiest and most frugal states in the country. Its median income ranks eighth nationally, but state outlays on a range of functions are average or below average. On public and higher education, for instance, Virginia's per capita spending ranks 38th nationally. On health care, its per capita spending ranks 40th."

  • "Ken Cuccinelli's so-called tax plan shows yet again that he puts ideological goals ahead of the good governance that Virginia is known for. His approach would create a budget crisis on the state level, while shifting the burden to localities and local taxpayers. Make no mistake, Cuccinelli's plan would cause deep cuts that could undermine Fairfax County schools, force local property taxes to rise, and even threaten Virginia's credit rating. Fairfax County taxpayers won't be fooled. Cuccinelli's plan would hit us where it hurts most -- our property tax bills." (Rep. Gerry Connolly, May 9, 2013, DPVA press release via NotLarrySabato)

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May 10, 2013

The Washington Post editorializes, "LIKE MITT ROMNEY, Virginia Attorney General Ken Cuccinelli II wants to cut taxes -- by a lot. Like Mr. Romney, Mr. Cuccinelli, the Republican candidate for governor, promises this would not reduce government revenues by a dime, since he would also eliminate significant tax loopholes and deductions. And like Mr. Romney, Mr. Cuccinelli adamantly refuses to identify these loopholes and deductions. Why would Mr. Cuccinelli expect Virginians to fall for this?"

Progressive Point: It's basic arithmetic -- the numbers in Ken Cuccinelli's tax plan only work if he cuts funding for public safety, our kid's schools, and other essential home front investments. His top-down class warfare budget priorities mirror Mitt Romney's and would focus on cutting programs that help the middle and lower class. All that to pay for $1.4 billion more in cuts from Virginia's already regressive tax system.

While closing unnecessary tax loopholes is good, Ken Cuccinelli fails to name those he would actually close. It's simple math -- if he wants to cut more and more taxes, the rest of us will have to make up for it. Just like Mitt Romney, Cuccinelli vaguely says he's willing to end tax loopholes without naming them. As a result his numbers only work if the middle class pays more and important home front programs get cut. Working families pay their taxes, so it isn't right when millionaires and big corporations don't do their fair share. But just like Mitt Romney, that is the failed tax philosophy with which Ken Cuccinelli wants to cripple our Commonwealth.

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  • Via the Washington Post:
    • Ken Cuccinelli's tax plan "would starve the state of the resources it needs to fund public schools, state colleges and universities, public safety, mental health programs and state parks. Somehow, he would slash $1.4 billion in taxes -- about 8 percent of the state's annual tax collections -- but hold revenue steady. It's economics reduced to magic."

    • "Already, Virginia's tax code is highly regressive. The personal income tax, which accounts for about two-thirds of state revenue, is a flat 5.75 percent for everyone making more than $17,000 a year. For the sake of fairness, the wealthiest Virginians should be asked to do more. By cutting personal income taxes, Mr. Cuccinelli would ask them to do less."

    • "His proposal assumes that Virginians are overtaxed and in need of relief. In fact, Virginia is one of the wealthiest and most frugal states in the country. Its median income ranks eighth nationally, but state outlays on a range of functions are average or below average. On public and higher education, for instance, Virginia's per capita spending ranks 38th nationally. On health care, its per capita spending ranks 40th."


  • "Ken Cuccinelli's so-called tax plan shows yet again that he puts ideological goals ahead of the good governance that Virginia is known for. His approach would create a budget crisis on the state level, while shifting the burden to localities and local taxpayers. Make no mistake, Cuccinelli's plan would cause deep cuts that could undermine Fairfax County schools, force local property taxes to rise, and even threaten Virginia's credit rating. Fairfax County taxpayers won't be fooled. Cuccinelli's plan would hit us where it hurts most -- our property tax bills." (Rep. Gerry Connolly, May 9, 2013, DPVA press release via NotLarrySabato)

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May 8, 2013

NBC News reports, "Ken Cuccinelli... unveiled a major new tax plan on Tuesday, and it very much resembles proposals by GOP presidential candidate Mitt Romney... Per the website for Cuccinelli's plan, the attorney general would help offset the $1.4 billion price tag for his tax cuts by identifying and eliminating 'outdated exemptions and loopholes that promote crony capitalism.' That's an approach remarkably similar to the kind preferred by Romney during his presidential campaign last year... In the case of Romney, he was left vulnerable to charges that his plan would actually result in higher taxes for many middle class Americans."

Progressive Point: In Virginia we invest in the things we value. Ken Cuccinelli's economic plan would gut home front programs that protect our families and invest in our future success. His ideological tax proposal would blow a hole in Virginia's budget and endanger the Commonwealth's record of sound fiscal management.

Schools, roads, nurses and cops aren't disposable in service of Ken Cuccinelli's right-wing ideology. Any economic plan that fails to prioritize these home front investments isn't a serious plan to promote economic opportunities for Virginia families. Cuccinelli's plan only pays lip service to ending a Richmond culture of corporate cronyism he has perpetuated, most recently through his questionable relationship with troubled tobacco company Star Scientific. It then fails to specify which of hundreds of corporate tax loopholes and giveaways he says he would target for elimination. If Virginians can't trust Cuccinelli to remember to disclose the lavish gifts he receives from corporate interests, can we really trust him to close loopholes that benefit some of his biggest donors?

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  • Via the Virginian-Pilot, new gifts that Ken Cuccinelli forgot to report include:
    • A $1,500 Thanksgiving dinner and Mountain Lake getaway in 2010 from Star Scientific Inc. chief executive Jonnie Williams
    • Another Smith Mountain Lake vacation worth $3,000 last summer
    • A $628 flight for Cucceinlli to New York City in 2009 to attend a Jewish cultural event
    • $7,751 in airfare expenses from Bristol-based Alpha Natural Resources in 2010 to fly Cuccinelli and his parents to a mining ceremony

  • For nearly a year, Ken Cuccinelli failed to disclose his financial interest in Star Scientific, as required by law for any interest exceeding $10,000. In October 2010, Cuccinelli purchased a little more than $10,000 in company stock. At the end of the year the stock dipped below $10,000 and did not need to be disclosed. "But in September 2011, Cuccinelli acquired 3,600 additional shares in the company, lifting the total value to nearly $19,000 by the end of the year." (Washington Post, Mar. 30, 2013)

  • In July 2011, Star Scientific challenged a tax assessment on property they own in Mecklenberg, VA. If they lose the suit the "financially struggling company...has told investors that it would owe the state $1.7 million in back taxes, penalties and interest." Just two months after the suit was filed, Ken Cuccinelli made an additional stock purchase in the company valued at about $10,000. Cuccinelli's office responded to the suit within two weeks, but no further court action has occurred since. (Washington Post, Mar. 30, 2013)

  • Via the Washington Post, gifts from Star Scientific chief executive Jonnie R. Williams Sr. to Cuccinelli over the years have included:
    • A "box of food supplement," valued at about $6,700
    • Use of a lake house and a boat, valued at $3,000
    • Transportation to Kentucky, valued at about $3,200
    • $800 in temporary lodging at William's Richmond home

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April 15, 2013

The Washington Post reports, "From about 1965 to 2003, a large majority of Americans felt their taxes were 'too high.' In recent years, however, more and more Americans believed their taxes fair. There have even been a few years were most Americans thought their taxes were either 'fair' or 'too low' (though 'too low' is, to be sure, an extremely rare answer). So historically speaking, you're actually not that upset about paying your taxes. Or, at the least, you're not as upset as you used to be. There's a big caveat here. These numbers don't include state and local taxes, which hit poorer Americans much harder, and which thus make the total taxes people actually pay much more regressive... The U.S. tax code is also more complicated than it needs to be, and the corporate code, in particular, is a mess."

Progressive Point: We all know it -- our tax code is rigged. Billionaire hedge fund managers still pay lower taxes than their secretaries, and the biggest corporations like GE and Verizon are getting away with paying nothing at all. Working families and small business owners are proud to pay their taxes so we can invest in America and make everyone better off, not so we can give hedge fund managers another tax break.

Corporate tax lobbyists are pushing Congress to give them more special tax breaks while making everyone else bear more of the burden -- even by cutting basic cost-of-living adjustments and health care benefits that hardworking families count on. Lobbyists for billionaires claim that we can fix the budget by giving more to those who already have a lot, but the only way to make their math add up is if working Virginians pay more. Those who've done well in America ought to do well by America and be proud to pay their fair share too.

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Ten more great tax day charts from the Atlantic are available here.

  • The wealthiest Americans are paying nearly the lowest tax rate in 50 years. In 2009, 22,000 households that made more than $1 million paid less than 15% in income taxes and nearly 1,500 paid no federal income taxes.

  • According to one study, ten of the largest companies in the U.S. paid no federal income tax on $16 billion in profits in 2012. Over the past five years, they paid zero federal income tax on nearly $60 billion in profits.

  • In terms of taxes dodged every year, corporations and wealthy individuals avoid paying an estimated $150 billion by using complicated accounting tricks to shift their profits to offshore tax havens. Corporations account for 60% of that, or $90 billion.

  • The average American taxpayer pays an extra $1,000 in taxes to cover the lost revenue from corporations and the very wealthy exploiting offshore tax havens not available to most people. The average small business pays over $3,000 to cover the offshore tax dodging by big corporations.

  • Corporate tax lobbyists have no credibility on these issues. When multinational corporations got their way on a similar offshoring tax giveaway in 2004, they started firing Americans right away while using the money to pay investors and corporate executives.

  • U.S. parents of multinational companies cut nearly 900,000 jobs between 1999 and 2009, while their foreign affiliates added nearly 3 million jobs.

  • CEO pay in the U.S. is 380 times the average pay of their workers -- by far the biggest gap in the world. History shows that as CEO pay rises, median income for ordinary families falls and the divide between the richest few and everyone else grows wider.

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April 5, 2013

The Huffington Post reports, "The grips of sequestration are just now beginning to be felt and the effects are already quite dramatic. Organizations and companies have begun laying off workers, while many more have decided not to staff vacant positions. Schools on military bases are contemplating four-day weekly schedules. Food pantries have closed, as have centers that provide health services. Farmers have been forced to go without milk production information, causing alarm in the dairy industry and the potential of higher milk prices. Workers at missile-testing fields are facing job losses. Federal courts have closed on Fridays. Public Broadcasting transmitters have been shut down... On the national level, sequestration may be defined by canceled White House tours and long lines at airports that never materialized. But on the local level, it is beginning to sting."

Progressive Point: It's been a long and grueling recovery and good economic news has been hard to come by. Americans have added jobs to our economy every month for three straight years, but millions of Americans are still pounding the pavement looking for work or facing layoffs due to the sequester. No wonder it's been the slowest economic recovery since WWII -- conservatives in Congress keep trying to lay off their own constituents and take money out of middle class Americans' pockets.

Because these politicians refuse to fix the sequester, working families across the Commonwealth and the country are getting laid off while others are scraping by with smaller paychecks, less health care and education, and fewer of the basic services we all rely on. We need leaders who care more about putting their constituents back to work than about laying them off just to score political points.

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Get the Facts: Whitehouse.gov reports that sequester will impact Virginia in the following ways this year:

  • Teachers and Schools: Virginia will lose approximately $14 million in funding for primary and secondary education, putting around 190 teacher and aide jobs at risk. In addition about 14,000 fewer students would be served and approximately 40 fewer schools would receive funding.
    • Education for Children with Disabilities: In addition, Virginia will lose approximately $13.9 million in funds for about 170 teachers, aides, and staff who help children with disabilities.

  • Work-Study Jobs: Around 2,120 fewer low income students in Virginia would receive aid to help them finance the costs of college and around 840 fewer students will get work-study jobs that help them pay for college.

  • Head Start: Head Start and Early Head Start services would be eliminated for approximately 1,000 children in Virginia, reducing access to critical early education.

  • Protections for Clean Air and Clean Water: Virginia would lose about $2,997,000 in environmental funding to ensure clean water and air quality, as well as prevent pollution from pesticides and hazardous waste. In addition, Virginia could lose another $826,000 in grants for fish and wildlife protection.

  • Military Readiness: In Virginia, approximately 90,000 civilian Department of Defense employees would be furloughed, reducing gross pay by around $648.4 million in total.
    • Army: Base operation funding would be cut by about $146 million in Virginia.
    • Air Force: Funding for Air Force operations in Virginia would be cut by about $8 million.
    • Navy: Cancel the maintenance of 11 ships in Norfolk, defer four projects at Dahlgren, Oceana,and Norfolk, and delay other modernization and demolition projects.

  • Law Enforcement and Public Safety Funds for Crime Prevention and Prosecution: Virginia will lose about $276,000 in Justice Assistance Grants that support law enforcement, prosecution and courts, crime prevention and education, corrections and community corrections, drug treatment and enforcement, and crime victim and witness initiatives.

  • Job Search Assistance to Help those in Virginia find Employment and Training: Virginia will lose about $348,000 in funding for job search assistance, referral, and placement, meaning around 18,390 fewer people will get the help and skills they need to find employment.

  • Child Care: Up to 400 disadvantaged and vulnerable children could lose access to child care,which is also essential for working parents to hold down a job.

  • Vaccines for Children: In Virginia around 3,530 fewer children will receive vaccines for diseases such as measles, mumps, rubella, tetanus, whooping cough, influenza, and Hepatitis B due to reduced funding for vaccinations of about $241,000.

  • Public Health: Virginia will lose approximately $764,000 in funds to help upgrade its ability to respond to public health threats including infectious diseases, natural disasters, and biological,chemical, nuclear, and radiological events. In addition, Virginia will lose about $2,140,000 in grants to help prevent and treat substance abuse, resulting in around 1,700 fewer admissions to substance abuse programs. And the Virginia State Department of Health will lose about $337,000 resulting in around 8,400 fewer HIV tests.

  • STOP Violence Against Women Program: Virginia could lose up to $172,000 in funds that provide services to victims of domestic violence, resulting in up to 700 fewer victims being served.

  • Nutrition Assistance for Seniors: Virginia would lose approximately $1,215,000 in funds that provide meals for seniors.

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March 21, 2013

The Virginian-Pilot reports, "Craig Lewis spent 10 years in the Navy in Hampton Roads and another 17 working for the service as a heavy equipment operator at Norfolk Naval Station. He hasn't gotten a raise in three years, and now, after what he sees as 27 years of service, he's about to lose a day a week of pay because of sequestration. To compound the burden, Lewis' wife works as a civilian Air Force employee, so she's going to be furloughed as well. On Wednesday, Lewis joined about 45 fellow union workers protesting outside the naval base to denounce budget cuts that will hit civilian workers hard."

Progressive Point: Virginia needs leaders who treat the challenges American families face with urgency -- not politicians who downplay job losses like they're just another political matter. Conservative leaders in Congress are about to furlough thousands of hard working Virginians and lay off 750,000 Americans across the country and blame the President. Instead of agreeing to end tax loopholes for the wealthy so we can stop the sequester, they want to replace its job-killing spending cuts with job-killing spending cuts -- and force the President to implement them.

Economic experts are warning that it's the size of the sequester's spending cuts that matters -- and that it will kill 750,000 jobs this year alone if Congress fails to act. The sequester means laying off the Americans who keep our country running -- from law enforcement to teachers -- and taking money out of the pockets of working people who are military and government employees right here in Virginia. With these Congressional conservative leaders downplaying the consequences for ordinary Americans, it's no wonder most voters think they're out-of-touch and agree they should be blamed for the sequester. It's almost as if they think regular Americans deserve these things to happen -- the massive cuts to our home front investments they've been pushing for all along.

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  • "Robert W. Barfield, a union official with the Tidewater branch of the Trades Council, said officials at the Norfolk Naval Shipyard are preparing to send furlough letters to all of the yard's 9,100 employees." (Virginian-Pilot, March 21, 2013)

  • Whitehouse.gov reports that sequester will impact Virginia in the following ways this year:
    • Teachers and Schools: Virginia will lose approximately $14 million in funding for primary and secondary education, putting around 190 teacher and aide jobs at risk. In addition about 14,000 fewer students would be served and approximately 40 fewer schools would receive funding.
      • Education for Children with Disabilities: In addition, Virginia will lose approximately $13.9 million in funds for about 170 teachers, aides, and staff who help children with disabilities.

    • Work-Study Jobs: Around 2,120 fewer low income students in Virginia would receive aid to help them finance the costs of college and around 840 fewer students will get work-study jobs that help them pay for college.

    • Head Start: Head Start and Early Head Start services would be eliminated for approximately 1,000 children in Virginia, reducing access to critical early education.

    • Protections for Clean Air and Clean Water: Virginia would lose about $2,997,000 in environmental funding to ensure clean water and air quality, as well as prevent pollution from pesticides and hazardous waste. In addition, Virginia could lose another $826,000 in grants for fish and wildlife protection.

    • Military Readiness: In Virginia, approximately 90,000 civilian Department of Defense employees would be furloughed, reducing gross pay by around $648.4 million in total.
      • Army: Base operation funding would be cut by about $146 million in Virginia.
      • Air Force: Funding for Air Force operations in Virginia would be cut by about $8 million.
      • Navy: Cancel the maintenance of 11 ships in Norfolk, defer four projects at Dahlgren, Oceana,and Norfolk, and delay other modernization and demolition projects.

    • Law Enforcement and Public Safety Funds for Crime Prevention and Prosecution: Virginia will lose about $276,000 in Justice Assistance Grants that support law enforcement, prosecution and courts, crime prevention and education, corrections and community corrections, drug treatment and enforcement, and crime victim and witness initiatives.

    • Job Search Assistance to Help those in Virginia find Employment and Training: Virginia will lose about $348,000 in funding for job search assistance, referral, and placement, meaning around 18,390 fewer people will get the help and skills they need to find employment.

    • Child Care: Up to 400 disadvantaged and vulnerable children could lose access to child care,which is also essential for working parents to hold down a job.

    • Vaccines for Children: In Virginia around 3,530 fewer children will receive vaccines for diseases such as measles, mumps, rubella, tetanus, whooping cough, influenza, and Hepatitis B due to reduced funding for vaccinations of about $241,000.

    • Public Health: Virginia will lose approximately $764,000 in funds to help upgrade its ability to respond to public health threats including infectious diseases, natural disasters, and biological,chemical, nuclear, and radiological events. In addition, Virginia will lose about $2,140,000 in grants to help prevent and treat substance abuse, resulting in around 1,700 fewer admissions to substance abuse programs. And the Virginia State Department of Health will lose about $337,000 resulting in around 8,400 fewer HIV tests.

    • STOP Violence Against Women Program: Virginia could lose up to $172,000 in funds that provide services to victims of domestic violence, resulting in up to 700 fewer victims being served.

    • Nutrition Assistance for Seniors: Virginia would lose approximately $1,215,000 in funds that provide meals for seniors.

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March 13, 2013

ThinkProgress reports, "As you may recall, we had an election last year in which Mitt Romney, Paul Ryan, and their ideas were soundly rejected by voters. Well, one person appears to have not gotten the message: Paul Ryan. Today, Ryan released the latest draconian budget from House Republicans and it is 'almost identical to the Republican presidential platform in 2012.'"

Progressive Point: If you want to know a politician's values and priorities, look at his budget plan for the country. There is more of the same in Paul Ryan's conservative budget: working families pay more so the rich pay less. His budget would lay off 2 million Americans next year alone, but let corporations pay even lower taxes. It would end Medicare as we know it so millionaires and Big Oil can get more tax breaks: just how Mitt Romney would have done it.

It's simple math -- the numbers don't add up unless the middle class pays for the conservatives' budget's tax giveaways to millionaires, oil companies, and corporations that ship jobs overseas. Leaders who've got their priorities straight are proposing to have the rich pay their fair share and close corporate tax loopholes so we can put Americans back to work. There they go again -- conservative leaders in Congress still proposing the same budget ideas that the American people keep rejecting. Been there, didn't do that.

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Get the Facts: Via ThinkProgress:

RomneyRyanSame-446x1024.png

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March 12, 2013

The Richmond Times-Dispatch reports, "Unintended consequences have come due for state agencies and local governments that have used part-time employees to regularly work more than 30 hours a week. For the first time, government employers will have to either provide health insurance benefits to those workers or cut back the part-time hours to fewer than 30 hours a week to comply with the Affordable Care Act... The decision facing Gov. Bob McDonnell and the General Assembly about how to treat employees working between 30 and 40 hours a week came down to money."

Progressive Point: We need an economy that works for all Virginians, and budget priorities that get us there. Richmond conservatives are still protecting corporate welfare handouts that cost taxpayers over $1B a year while refusing to spend less than a tenth that amount to provide state workers affordable health coverage.

Refusing to ask corporations to pay their fair share is just cowardly. Courage is standing up to big corporations and for working families, and that's the one thing Richmond conservatives won't do. They would rather increase health care costs for our state workers so they can keep funneling taxpayer dollars into the pockets of the big companies who fund their campaigns. If we want to fix Virginia's budget problems asking corporations to pay their fair share is the first step.

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Virginia's Spending Priorities GRAPHIC EMAIL.jpg

 

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January 25, 2013

The Commonwealth Institute reports, "The governor's proposal to address Virginia's transportation crisis has two major flaws under its hood. It derives more than two-thirds of its revenue from sources that are tentative, at best. And, even assuming the plan is approved as the governor envisions, it falls far short of what Virginia needs to repair and maintain existing roads, bridges and other infrastructure that businesses rely on to get their goods to market and that commuters need to get to work, school and other places."

Progressive Point: A transportation plan that asks the poorest Virginians to pay more while cutting home front investments isn't a step forward for Virginia. But Governor McDonnell is considering more massive spending cuts to the home front investments we value, including massive cuts to public safety programs that keep police and firefighters on the streets.

Budgets are moral documents that should reflect our priorities and our needs as a Commonwealth. Bob McDonnell's transportation plan would raise taxes on almost everything families buy, a high burden on low-income Virginians. Meanwhile, it still keeps the tax code rigged in favor of the wealthy and corporations. That's not the vision of Virginia we voted for -- and neither is cutting taxes for the sake of cutting and taking money out of working families' pockets.

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MostlyFumes2.jpg
  •  
    • More than 60 percent of the funding comes from two sources that face extremely uncertain political futures

    • Even if the proposal were to pass, the estimated revenue falls over $800 million short of VDOT's two-year need. Take out the uncertain revenue, and the proposal would cover just 21 percent of the funding VDOT estimates it needs over the next two years.

  • Virginia ranks 7th in the country in per capita income, but 47th in per capita spending on transportation. The reason for such a large imbalance is the majority of Virginia's transportation funding comes from the fuel tax which currently sits at just 17 cents per gallon. However, the gas tax would be "35 cents today had it been indexed for inflation." (Bob Chase, president of the Northern Virginia Transportation Alliance, Daily Press, December 9, 2011)

  • "Virginia already has a regressive tax system, with the richest 1 percent paying a 5.2 percent effective tax rate, while the poorest Virginians (those making less than $19,000) pay 8.8 percent, according to the Institute on Taxation and Economic Policy. Increasing the sales tax is only going to make that disparity worse, while making those who don't use the state's highways pay more for their upkeep." (ThinkProgress, January 14, 2013)

  • Virginia has not provided new funding for transportation since 1987. Within five years, "No state funds will be available for new highway construction projects; The state will be unable to provide the required matching funds to bring to Virginia all the federal transportation revenue it is otherwise eligible to receive; and Virginia won't have enough money to keep its existing roads, bridges and tunnels up to proper maintenance standards." (Richmond Times-Dispatch, June 8, 2012)

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January 15, 2013

ThinkProgress reports, "Virginia Governor Bob McDonnell (R) was on Fox News today to discuss his new plan to shift the cost of highway construction from drivers to the poor, which he will accomplish by eliminating his state's gas tax and replacing it with an expanded and increased sales tax... the sales tax disproportionately affects those at the bottom of the income scale who are more likely to spend all or most of their income -- and by those who use mass transit, walk or bike."

Progressive Point: Virginians think we all deserve a shot at the American Dream, even if we didn't all get the same start in life. Governor McDonnell's transportation plan would hit poor Virginia families the hardest by raising taxes on everything we buy while at the same time keeping tax giveaways and loopholes for campaign donors and big corporations.

Virginia's greatness comes from everyone striving for a shot at the American Dream, not making it harder for struggling families to get by. Bob McDonnell's plan would put a higher burden on low-income Virginians--as well as walkers, bikers, and public transportation users, who would be just as responsible for paying for roads as drivers. A transportation plan that asks the poorest Virginians to pay more while cutting home front investments isn't a step forward for Virginia.

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  • Virginia ranks 7th in the country in per capita income, but 47th in per capita spending on transportation. The reason for such a large imbalance is the majority of Virginia's transportation funding comes from the fuel tax which currently sits at just 17 cents per gallon. However, the gas tax would be "35 cents today had it been indexed for inflation." (Bob Chase, president of the Northern Virginia Transportation Alliance, Daily Press, December 9, 2011)

  • "Virginia already has a regressive tax system, with the richest 1 percent paying a 5.2 percent effective tax rate, while the poorest Virginians (those making less than $19,000) pay 8.8 percent, according to the Institute on Taxation and Economic Policy. Increasing the sales tax is only going to make that disparity worse, while making those who don't use the state's highways pay more for their upkeep." (ThinkProgress, January 14, 2013)

  • Virginia has not provided new funding for transportation since 1987. Within five years, "No state funds will be available for new highway construction projects; The state will be unable to provide the required matching funds to bring to Virginia all the federal transportation revenue it is otherwise eligible to receive; and Virginia won't have enough money to keep its existing roads, bridges and tunnels up to proper maintenance standards." (Richmond Times-Dispatch, June 8, 2012)

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January 8, 2013

The Washington Post reports, "Gov. Bob McDonnell plans to unveil his long-promised transportation funding reform package in Richmond less than a day before state lawmakers convene for their 2013 session... The only financial portion of the program he has discussed publicly would shift about $48 million from the General Fund by designating a sliver of the state sales tax for transportation use."

Progressive Point: Providing our children a good education and making sure Virginia has the transportation infrastructure to get people to work and goods to market are vital government functions. But, Virginia can't do both while Bob McDonnell insists on preserving giveaways and loopholes to campaign donors and big corporations. Now McDonnell wants to pull money out of K-12 education to deal with our transportation crisis. Cutting our home front investments in education hurts our families and puts our communities at risk.

We wouldn't be facing this unfair choice between schools and transportation if Bob McDonnell were willing to make sure everyone pays their fair share. Cutting investments in our communities kills jobs and slows economic growth. Forcing Virginia to choose which vital investments to keep is the wrong path.

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Get the Facts:

  • Almost a quarter of Virignia's state bridges are rated deficient or obsolete. A "recent Senate Finance Committee analysis concluded that congestion costs the state $3.7 billion annually in lost economic activity. Northern Virginia and Hampton Roads are among the more gridlocked regions in the nation." (Virginian-Pilot, January 8, 2013)

  • This year, Virginia dropped from 10th to 33rd place in CNBC's ranking on state infrastructures and transportation, causing Virginia to lose it's position as the best state in the country to do business. "Infrastructure -- specifically the state's perpetually clogged highways -- has long been an issue in fast-growing Virginia, CNBC said." (Richmond Times-Dispatch, July 10, 2012)

  • The president and CEO of Virginia's Chamber of Commerce called the lack of investment in infrastructure an "area of concern for business and policymakers" and that, "we have to find a formula that will provide the funding that will keep up with the fast-paced growth of Virginia's economy." (Richmond Times-Dispatch, July 10, 2012)

  • Virginia ranks 7th in the country in per capita income, but 47th in per capita spending on transportation. The reason for such a large imbalance is the majority of Virginia's transportation funding comes from the fuel tax which currently sits at just 17 cents per gallon. However, the gas tax would be "35 cents today had it been indexed for inflation." (Bob Chase, president of the Northern Virginia Transportation Alliance, Daily Press, December 9, 2011)

  • Virginia has not provided new funding for transportation since 1987. Within five years, "No state funds will be available for new highway construction projects; The state will be unable to provide the required matching funds to bring to Virginia all the federal transportation revenue it is otherwise eligible to receive; and Virginia won't have enough money to keep its existing roads, bridges and tunnels up to proper maintenance standards." (Richmond Times-Dispatch, June 8, 2012)

  • Governor McDonnell's own Secretary of Transportation has admitted that, "without additional revenue, all transportation money will be used to maintain existing roads, leaving none for new highway construction." (Richmond Times-Dispatch, May 23, 2012)

  • VirginiaFREE reports, "At a bare minimum, new money is required to meet basic maintenance needs, restore viability to the construction budget and ensure that Virginia is a viable partner with the private sector on (public-private transportation) projects." (Richmond Times-Dispatch, May 23, 2012)

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January 7, 2013

The Virginian-Pilot reports, "From beehives to bullion to burial urns in space, no commodity is considered too arcane for a tax break. A recent government report found nearly 200 tax breaks that together cost Virginia $12.5 billion a year - almost as much as the state collects in taxes. That money could go a long way: Virginia's road network is crumbling under the weight of as much as $3 billion a year in unfunded construction needs, while state colleges, starved of government support, have doubled tuition rates over the past decade."

Progressive Point: Virginia's working families pay their fair share and its time everyone else did the same. But instead of ending tax giveaways for big corporations and the 1%, Governor McDonnell is considering more massive spending cuts to our home front investments, including huge cuts to public safety programs that keep our police and firefighters on the streets.

Our Commonwealth's budget is about more than just numbers--it's a roadmap for our community priorities. That means putting people back to work and growing our economy by getting rid of tax breaks and loopholes that don't work. Our greatness comes from the people striving for a shot at the American dream, not cutting the programs that help keep us free from harm. In Virginia, everyone should get a fair shot, pay their fair share, and play by the same set of rules.

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Get the Facts:

  • Virginia loses $12.5 billion in revenue a year through nearly 200 tax credits and giveaways that receive little-to-no scrutiny and accountability. (Virginian-Pilot, January 6, 2013)

  • The Virginian-Pilot also reports:
    • "[A]mong those judged least effective were two tax credits intended to promote the Virginia coal industry. Those credits, which cost the state $27 million in 2011, appear not to have achieved their goal of slowing the decline of coal mining activity and employment, the investigators found... [M]ining is the only sector of the Virginia economy that produces negative tax revenue... There is a net cash flow from the state to the mining companies, not the other way around."

    • "A favorite target of critics is the yacht tax break. Watercraft sales are taxed at 2 percent, but there's a $2,000 cap. That means the buyer of a $1 million yacht pays the same tax as a waterman who buys a $100,000 workboat."

    • "[T]he top 1 percent of state households - those making more than $529,000 a year - pay 5 percent of their income in state and local taxes, according to a recent analysis by the Washington-based Institute on Taxation and Economic Policy. The poorest one-fifth - those making less than $19,000 - pay nearly 9 percent."

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January 4, 2013

The Washington Post reports, "The General Assembly returns to Richmond on Wednesday for a jampacked month. Virginia's legislative sessions come in two sizes: short and long. This is a short year, lasting 30 days, half as long as last year's session. Good thing, too, because there's lots of politicking to get on with once it wraps up. With all three statewide offices open this year, it seems as though half of Richmond is running for governor, lieutenant governor or attorney general -- mostly lieutenant governor. All 100 seats in the House of Delegates are up for election."

Progressive Point: The choices our elected officials in Richmond make this year in the General Assembly are supposed to reflect our priorities and our needs as a community and as a Commonwealth. Instead, conservative officials are planning new massive cuts to home front investments in public safety, schools, and essential services. Meanwhile, they are still pushing to keep a tax code is still rigged in favor of the wealthy and corporations.

Virginia faces a choice: cut what we don't need like corporate tax loopholes, outdated pork, and subsidies for dirty energy -- or drag down our economy by cutting the things we do. Bob McDonnell and conservatives in the General Assembly have already cut support for our schools, medical research, and public safety -- all taking money out of people's pockets and customers out of stores. But this year it is time for those we voted for to cut what we don't need so we can protect the things we do.

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Get the Facts:

  • Since the beginning of the recession, Virginia has reduced state support for K-12 education by $2.6 billion. (The Commonwealth Institute, April 2011)

  • The president and CEO of Virginia's Chamber of Commerce called the lack of investment in infrastructure an "area of concern for business and policymakers" and that, "we have to find a formula that will provide the funding that will keep up with the fast-paced growth of Virginia's economy." (Richmond Times-Dispatch, July 10, 2012)

  • Virginia's 2012 budget totaled nearly $4.8 billion. Of that, almost $1.3 billion was borrowed money. (Richmond Times-Dispatch, June 8, 2012)

  • Governor McDonnell's own Secretary of Transportation has admitted that, "without additional revenue, all transportation money will be used to maintain existing roads, leaving none for new highway construction." (Richmond Times-Dispatch, May 23, 2012)

  • According to a recent report by 24/7 Wall St., Virginia has cut support to localities by 8.5 percent between 2009 and 2010. This equals a loss of $1 billion for communities, the 3rd worst cut in the country. (Roanoke Times, July 9, 2012)

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A Congress that shares our values

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January 2, 2013

The Washington Post reports, "U.S. markets surged more than 2 percent Wednesday morning, hours after Congress approved a plan to avoid the 'fiscal cliff' by raising taxes on American's wealthiest households. The late-night, last-minute deal allows the nation to avoid the severe austerity measures that were slated to take effect starting today."

Progressive Point: Virginians deserve a Congress that shares our values and works towards solutions on our priorities. Our vision of America doesn't include tax cuts for the wealthy while the rest of us struggle. Shame on conservatives in Congress who refuse to ask the wealthy to pay their fair share no matter what's at stake for the country.

Conservatives who voted against our common sense priorities made it clear they don't share our vision for our country. When they refused to raise taxes on the super-rich, it shows they'll never ask the wealthy to pay their fair share. Virginia families know what it takes to fix this mess, and it starts with passing middle class tax cuts, extending unemployment insurance, and putting Americans back to work to get our economy going.

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Get the Facts: Via ThinkProgress:

  •  
    • The first major tax increase for the wealthy in 20 years. Allowing the expiration of some of the Bush tax cuts amounts to the first major tax increasefor the wealthiest Americans since the 1990s.

    • The Bush tax cuts expire for just 0.7 percent of taxpayers. The expiration will occur on income in excess of $400,000 (or $450,000 for a couple). This translates into "a little over 1 million Americans" according to the Tax Policy Center. The capital gains and dividend tax will also increase to 20 percent for wealthy earners.

    • The top 1 percent will pay an average of $73,633 more in taxes. Bloomberg News noted that, "among households with incomes between $500,000 and $1 million, taxes would go up by an average of $14,812."

    • Two million unemployed workers see benefits saved. Without the extension included in the fiscal cliff deal, millions of workers would have seen their federal unemployment insurance pulled out from under them.
  • The House of Representatives "passed the measure Tuesday evening by a vote of 257-167, with 85 Republican votes. 151 Republicans, including House Majority Leader Eric Cantor (R-VA) and Majority Whip Kevin McCarthy (R-CA), and 16 Democrats voted against the bill." (ThinkProgress, January 1, 2013)

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December 21, 2012

The Washington Post reports, "For nearly a decade, officials in Richmond have warned that funding for the state's transportation system is drying up, a victim of inflation, aging roads and rails, the improving fuel efficiency of vehicles and a per-gallon gasoline tax that has remained unchanged since 1986, its purchasing power shriveling to nothingness... Somehow, the official who has led Virginia's House of Delegates since 2003 missed all of it. In a speech the other day to the Fredericksburg Chamber of Commerce, House Speaker William J. Howell (R-Stafford) said he isn't sure there will be time in the 45-day legislative session that starts next month to deal with transportation funding."

Progressive Point: Virginia families and small businesses depend on a working transportation system. It shouldn't take extraordinary courage for our elected officials to make sure our roads and transit systems aren't crumbling. But politicians, like Speaker Bill Howell, are not only refusing to take action but won't even acknowledge the problem.

Virginians know that sitting for hours in traffic is bad for our families and bad for our economy. We work hard every day and our elected officials should do the same. Instead of putting forth so-called solutions that pass the buck or require untenable choices between schools and roads, we need real ideas to move us forward. Instead of focusing on an extreme ideological agenda, our representatives should do right by the Virginians who elected them get to work on delivering solutions.

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Get the Facts:

  • This year, Virginia dropped from 10th to 33rd place in CNBC's ranking on state infrastructures and transportation, causing Virginia to lose it's position as the best state in the country to do business. "Infrastructure -- specifically the state's perpetually clogged highways -- has long been an issue in fast-growing Virginia, CNBC said." (Richmond Times-Dispatch, July 10, 2012)

  • The president and CEO of Virginia's Chamber of Commerce called the lack of investment in infrastructure an "area of concern for business and policymakers" and that, "we have to find a formula that will provide the funding that will keep up with the fast-paced growth of Virginia's economy." (Richmond Times-Dispatch, July 10, 2012)

  • Instead of investing in our transportation infrastructure, Speaker Howell "has backed fanciful strategies, including selling naming rights for highways and bridges, and unworkable ones, such as shifting existing funds to transportation by raiding the rest of Virginia's budget -- for education, health care and public safety." (Washington Post, December 21, 2012)

  • Virginia has not provided new funding for transportation since 1987. Within five years, "No state funds will be available for new highway construction projects; The state will be unable to provide the required matching funds to bring to Virginia all the federal transportation revenue it is otherwise eligible to receive; and Virginia won't have enough money to keep its existing roads, bridges and tunnels up to proper maintenance standards." (Richmond Times-Dispatch, June 8, 2012)

  • Virginia's 2012 budget totaled nearly $4.8 billion. Of that, almost $1.3 billion was borrowed money. (Richmond Times-Dispatch, June 8, 2012)

  • Governor McDonnell's own Secretary of Transportation has admitted that, "without additional revenue, all transportation money will be used to maintain existing roads, leaving none for new highway construction." (Richmond Times-Dispatch, May 23, 2012)

  • VirginiaFREE reports, "At a bare minimum, new money is required to meet basic maintenance needs, restore viability to the construction budget and ensure that Virginia is a viable partner with the private sector on (public-private transportation) projects." (Richmond Times-Dispatch, May 23, 2012)

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December 20, 2012

The Washington Post reports, "House GOP leaders scrambled to rally their members Wednesday behind a plan to extend tax cuts on income up to $1 million, defying President Obama's veto threat and setting up a showdown that could send Washington over the year-end 'fiscal cliff...' A House vote on the plan, scheduled for Thursday, poses a major political test for Boehner's leadership team, which is pitching it as a vote of confidence and a way for Republicans to extract more concessions from Obama in negotiations over government spending and taxes."

Progressive Point: The conservative House GOP "Plan B" to keep tax cuts for the wealthy at the expense of working Virginians puts political games above the real needs of our families. America's greatness comes from our middle class families striving for a shot at the American dream, not lower tax rates for the top 2% and less opportunity for the rest of us.

Conservatives in Congress couldn't make their priorities any clearer. Their "Plan B" would end unemployment insurance that 2 million Americans need in between jobs, eliminate essential tax credits for 25 million working Americans, and save millionaires an average of $50,000. We expect our leaders to put our families' priorities before partisan payoffs. Today it is clear many still need to get that message.

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  • Speaker "Boehner's Plan B" would end unemployment insurance that 2 million Americans use to subsist in between jobs. It would eliminate tax cuts that 25 million Americans need by letting the Earned Income Tax Credit, the Child Tax Credit, and the Opportunity Tax Credit all expire. And, it would save millionaires an average of $50,000 in taxes at the expense of important programs. (TheAction.org, December 19, 2012)

  • Today, progressives from across the Commonwealth will rally in Richmond to tell Rep. Eric Cantor "It's time to extend tax cuts for 98% of America!"

Richmond Rally Poster 4.jpg

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December 18, 2012

The Virginian-Pilot reports, "Mixed in with the governor's tune-ups to the $87 billion, two-year budget are efforts to revive defeated proposals to shift some sales tax revenue to road needs, and to revamp the teacher tenure system... On transportation, he wants to gradually send a greater slice of revenue from Virginia's 5-cent sales tax to a state account for road upkeep that is so costly it threatens to overwhelm the construction budget within five years."

Progressive Point: Providing every child in Virginia the opportunity to learn and obtain a quality education is a core and essential function of our state government. But once again, Governor McDonnell has proposed to pit education and transportation against each other in a battle for funding rather than finding the new sources of revenue both need to function effectively.

Without a well-educated workforce and a functional transportation system, Virginia cannot hope to attract top tier businesses, workers, and families. These home-front investments are a shared investment in Virginia's economic future. Virginia should be leading in education, not getting left behind, but many of our schools are already choosing between paying for buses or teachers. Bob McDonnell's proposal to rob our schools to pay for roads only forces our students and families further away from their fair shot

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Get the Facts:

  • Since the beginning of the recession, Virginia has reduced state support for K-12 education by $2.6 billion. (The Commonwealth Institute, April 2011)

  • Since 2008, Virginia has cut per student funding by 10%, or $592 per pupil. (Center for Budget and Policy Priorities, Sept. 4, 2012)

  • Governor McDonnell has in fact touted on cable news his own work to cut "billions" from education in Virginia. (YouTube via ProgressVA, October 2011)

  • Increasing investment in our schools and closing the educational-achievement gap between the U.S. and higher-performing countries could boost our gross domestic product by 16%. (Wall Street Journal, April 22, 2012)

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December 17, 2012

The Richmond Times-Dispatch reports, "Rep. Scott Rigell, R-2nd, who has repudiated Grover Norquist's anti-tax pledge, is calling on House Republicans to embrace increased revenue to avert the fiscal cliff. Rigell says the approach is consistent with fiscal conservatism... 'Increasing revenues through tax reform (as well as through growth) is a mathematical - and fiscally conservative - imperative,' Rigell says.

Progressive Point: Any deal that puts millionaires before the middle class isn't a good deal for Virginia families. More conservative Congressmen should follow Rep. Rigell's lead in ditching the extreme pledge to a single D.C. lobbyist and supporting a plan that asks the wealthy to pay their fair share.

It's past time for conservatives to ditch their pledge to Grover Norquist to never raise taxes on the super rich or big corporations. Asking the wealthy to pay their fair share and allowing the Bush tax cuts for the top 2% to expire would generate nearly $1 trillion in revenue over the next ten years. Which should be more important to our elected leaders: a pledge to some tax lobbyist in Washington or what's best for the country and Virginia families?

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  • More than 50 Congressional Republicans have distanced themselves from Norquist's pledge. (Think Progress, 11/30/12)

  • Regarding the Norquist pledge, Congressman Eric Cantor stated, "When I go to the constituents, it's not about that pledge. It's about trying to solve problems." (Defense News, 11/26/12)

  • Regarding the Norquist pledge, Congressman Scott Rigell stated, "Averting bankruptcy requires us to grasp the severity of our fiscal condition and summon the courage to speak boldly about the difficult steps needed to increase revenues and sharply decrease spending." (Washington Post, 5/25/2012)

  • Rep. Rigell believes "the 'Bush tax cuts' coupled with Grover Norquist's 'no new tax pledge' signed by the vast majority of Republicans in Congress have locked federal revenue in at a rate that is unsustainable. 'We have a structural deficit that should scare every American across this country,' Rigell said. 'I think our house is on fire.'" (Think Progress, 8/28/12)

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Schools or tax breaks for the wealthy?

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December 12, 2012

The Washington Times reports, "Virginia teachers are joining a chorus of national educators who are imploring Congress to address the looming 'fiscal cliff' and are warning that state school systems stand to lose big if nothing is done... Failure to reach a deal by the new year would usher in broad tax increases and mandatory federal spending cuts of about $109 billion a year through 2021. NEA [National Education Association] officials say more than $4 billion a year of that would be slashed from education, with much it coming from programs aimed at helping struggling schools, low-income students and the disabled."

Progressive Point: Our elected representatives face a choice: cut funding for community schools or ask the super wealthy pay their fair share. We don't invest less in the things we value. Our schools are a home-front investment in our priorities: an educated workforce and a stronger economy.

Investments in education strengthen and benefit the entire Commonwealth. Virginia schools are already choosing between paying for buses or teachers. We don't invest less in the things we value, and we value our children, our schools, and our Commonwealth's future.

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  • Education in Virginia stands "to lose $75 million in federal funding and 1,300 jobs, most of which would come from special education and Head Start programs." (Washington Times, December 11, 2012)

  • Nationwide, "going over the 'fiscal cliff' would slash $1.2 billion a year in Title I grants, which are given to schools with a high number of students from low-income households...  [R]eductions would cut services for 1.7 million students and eliminate 15,000 education jobs -- part of nearly 80,000 education job losses that could take place.(Washington Times, December 11, 2012)

  • Increasing investment in our schools and closing the educational-achievement gap between the U.S. and higher-performing countries could boost our gross domestic product by 16%. (Wall Street Journal, April 22, 2012)

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December 11, 2012

The Virginian-Pilot reports, "Emissaries of Gov. Bob McDonnell are heading to Washington, D.C. this week to meet with anti-tax advocate Grover Norquist ahead of the 2013 General Assembly session when adjustments to Virginia's gasoline tax could be in the offing. Tuesday's meeting comes a day after Norquist in a Dec. 10 letter told state lawmakers that his group, Americans for Tax Reform, opposes 'any proposal to index the gas tax to inflation because simply, this proposal is a job-killing tax increase.'"

Progressive Point: Governor Bob McDonnell should be working for Virginia families, not a single DC tax lobbyist. Conservatives across the country are rejecting Grover Norquist's radical anti-tax pledge that puts extreme ideology before the needs of our communities. Even Eric Cantor has walked back his commitment to Norquist's outrageous pledge. Governor McDonnell should do the same. 

Virginian families are begging for home-front investments to fix our crumbling infrastructure and support community schools suffering from billion dollar budget cuts. We  deserve elected officials who put us, not political ambitions and super lobbyists, first.

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Get the Facts:

  • Grover Norquist recently contacted Virginia legislators to express his opinion that indexing Virginia's gas tax to inflation would violate his anti-tax pledge. (Washington Post, 12/10/12)

  • In response to Norquist's letter, the Virginian Pilot reports McDonnell staffers will travel to DC to meet with the prominent lobbyist. (Virginian Pilot, 12/10/12)
  • More than 50 Congressional Republicans have distanced themselves from Norquist's pledge. (Think Progress, 11/30/12)
  • Regarding the Norquist pledge, Congressman Eric Cantor stated, "When I go to the constituents, it's not about that pledge. It's about trying to solve problems." (Defense News, 11/26/12)
  • Regarding the Norquist pledge, Congressman Scott Rigell stated, "Averting bankruptcy requires us to grasp the severity of our fiscal condition and summon the courage to speak boldly about the difficult steps needed to increase revenues and sharply decrease spending." (Washington Post, 5/25/2012)
  • Rep. Rigell believes "the 'Bush tax cuts' coupled with Grover Norquist's 'no new tax pledge' signed by the vast majority of Republicans in Congress have locked federal revenue in at a rate that is unsustainable. 'We have a structural deficit that should scare every American across this country,' Rigell said. 'I think our house is on fire.'" (Think Progress, 8/28/12)

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