"Pass the Buck" Bob's Christmas present to Virginia families
December 19, 2011
Governor McDonnell unveiled his two-year budget this morning in a speech to the legislative money committees. As predicted, the Governor's budget takes a cuts-only approach to close Virginia's projected $1 billion budget shortfall. The Governor';s proposed cuts target programs for poor and needy families and seniors, delivering devastating budget cuts to education, health care, and social services.
Progressive Point: Governor Bob McDonnell revealed his budget his morning and made clear his priorities are out of step with Virginia families. While poverty in Virginia is on the rise, McDonnell proposed slashing support to those hardest hit by the recession while preserving tax breaks and giveaways to big business and the 1%.
McDonnell's proposals are out of step with Virginia values. Prioritizing tax giveaways for the wealthy over education, health care, and social services hurts vulnerable families who have been struggling through this recession. Pass the Buck Bob's budget is the latest example of his refusal to look out for the greater good of the Commonwealth, and comes as devastating news for many Virginians during the holidays.
Get the Facts:
- The targets of McDonnell's budget cuts include Pre-K programs, Medicaid, indigent care, and long-term care. McDonnell's budget does not include proposals to close the tax loopholes and giveaways that riddle Virginia's tax code. (Associated Press/Washington Post, December 19, 2011)
- Virginia loses $12.5 billion in revenue a year through credits and giveaways that receive little-to-no scrutiny and accountability. (JLARC) The most egregious include:
- Over 60% of Virginia corporations pay no income tax in Virginia, while families on the Commonwealth are taxed on their income
- Thanks to loopholes, big business are able to dodge Virginia taxes by outsourcing the money they made here and importing losses from other states
- In 2008, coal companies received $31 million in tax breaks designed to slow layoffs in the industry. Instead, unemployment increased even more quickly than anticipated
- Sales taxes on yacht purchases are capped at just 2%, providing a huge tax break to buyers of a $100,000 yacht while Virginia families pay the full sales tax rate on their purchases