A balanced approach to the budget includes closing loopholes
December 15, 2011
At a rally in Richmond today, Better Choices for Virginia -- "a broad group of Virginia businesspeople, nonprofit leaders, local officials, educators and working men and women -- gathered at the Capitol to call on the Governor to cut loopholes - not jobs - to solve the state's financial crisis. With the Governor preparing to unveil his plan for the upcoming budget next week, the more than 40 organizations that comprise the growing Better Choices coalition want him to protect and create jobs instead of making deep cuts to schools, health care, public safety and other key building blocks for a strong economy."
Progressive Point: Virginians are demanding that Governor McDonnell take a balanced approach to creating the Commonwealth's budget. Virginia's previous cuts-only approach, which avoided closing tax loopholes, is not what Virginia's working families want or deserve. Tax cuts for the wealthy will not create jobs, and taking more money away from students is a poor investment in our future.
These hard economic times require a balanced approach that includes closing tax loopholes and giveaways and serves all members of our community--not just those at the top. McDonnell's cuts-only mentality is wrong for Virginia and must not be continued in the upcoming budget.
Get the Facts:
- Virginia has a roughly $1 billion gap over the next 2 years and relying on a cuts-only approach to essential services will likely hurt Virginia's ability to create jobs and grow the economy. (Better Choices for Virginia, December 15, 2011)
- Governor McDonnell's budget proposal will impose a greater burden on local governments who are already struggling, that "are already strapped and which are responsible for critical vital services like public education, public safety, and public health. Local governments cannot afford to absorb this. To use an overused expression, it is an 'unfunded mandate.'" (Sen. Donald McEachin, Blue Virginia, December 15, 2011)
- Tax breaks for yacht owners: Virginia taxes watercraft sales at a reduced rate compared to other goods and caps the total amount at $2,000, giving away massive tax breaks to owners of expensive yachts, while working families pay the full sales tax on everything they buy. (The Commonwealth Institute)
- In 2008, 64% of Virginia corporations paid no corporate income tax. (The Commonwealth Institute)