Jobs vs. Tax Loopholes
November 16, 2011
The Richmond Times Dispatch reports, "members of the House of Delegates' money committees were told on Tuesday that the state could face a roughly $1 billion budget gap over the next two years despite increasing revenues." While Governor Bob McDonnell and conservative legislators look for further budget cuts, the nonpartisan Joint Legislative Audit and Review Commission, in a new study this week, found that Virginia gives away $12.5 billion in tax loopholes every year.
Progressive Point: Across the country, people from all walks of life are demanding our leaders represent all of us, not just the 1%. But here in Virginia, Governor McDonnell is seeking more budget cuts that will hurt middle class families rather than close tax loopholes for his wealthy donors. Laying off teachers, nurses and firefighters equals more pain for the middle class. Protecting tax loopholes and giveaways tips the scales for the richest among us while Virginians continue to struggle. Its time to invest in the backbone of our economy--the middle class--not increase the burden on the 99%.
Get the Facts:
- According to JLARC, in 2008, coal companies in Virginia received $31M in corporate welfare designed to boost employment in the industry. Instead, coal companies laid off more workers. (JLARC Report-PDF,Washington Examiner)
- 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)
- "Unusually high unemployment for the state means welfare payments to families with dependent children is up 16 percent, while the number of people qualifying for Medicaid because of their poverty or disability is up 18 percent. The number of food stamp recipients is up 61 percent."(The Staunton News Leader)
- States that have cut the most spending over the past several years have lost the most jobs.
- Since the recession hit, most Americans say the best way to reduce the deficit is to get rid of tax breaks to millionaires and eliminate giveaways for oil companies.