Caucus focus – Week in review
By JR Hoeft | Saturday, January 24th, 2009 | Policy
Since getting involved in the new media, and placed on many different press release distributions, I’ve found it fascinating to see what the different caucuses want to discuss. This week has been no different because each caucus had a completely different focus.
First, Senate Republicans are all geared-up on health care. The two primary bills they want to discuss are SB 843 and 885…both which they oppose. The argument is the usual one – Democrats have their heart in the right place while they simultaneously fleece the taxpayer.
According to the release, “Senate Bill 843 calls for an immediate increase in the medical malpractice cap from its current level of $2 million to $2.75 million with increases every year thereafter” and “Senate Bill 885 would alter current law by permitting drug-related personal injury lawsuits to be filed within two years after the person discovers, or reasonably should have discovered, an injury resulting from negligence of another, rather than Virginia’s current standard of two years from the date of injury.”
On the surface, those two bills probably make a lot of sense, but the GOP argues:
“The costs of healthcare have risen above inflation and that families are finding it harder to pay their premiums. My colleagues and I agree that this is not the right time to pass legislation that will increase the costs of those premiums,” said Senator Steve Newman. “Communities all over Virginia have seen a decline in specialists due to the increase in the cost of malpractice insurance. These problems would only be exacerbated by the passage of S.B. 843. In the meantime, S.B. 885 would only add to the concern by driving up the cost of prescription drugs. I am pleased that all of our Senators found agreement on opposing these bills this year.”
Senate Democrats were completely silent. They had nothing to say this week. (I wonder if they removed me from their distro, cause it’s been awhile since I have seen anything from them.) Kudos, though, to Senators Northam and Miller who broke with their party and voted for the confirmation of Les Lilley to be Circuit Court Judge. The Virginian-Pilot called this a “hit” (as opposed to a “miss”)…and so do I. The Commonwealth Coalition – Virginia’s Gang of Four – is starting to exercise their electoral muscle…much to the dismay of folks like Sen. Yvonne Miller – one of only two Democrats to oppose Lilley. Apparently the other Democratic senators took a walk.
House Republicans didn’t have much to say this week either, although last week they did pass legislation tightening fund raising rules and voted to table the expansion of completely free absentee voting.
However, the most ridiculous proposal of the week came from House Democrats. Once again, they engage in class warfare:
The Middle Class and Small Business Tax Relief Act will repeal the state sales tax on groceries, repeal the corporate income tax for businesses making less than $100,000 per year, and cut the personal income tax for Virginians making between $17,000 and $75,000 per year, all while protecting existing money that is dedicated to public education and transportation.
Eliminating the current 1.5 percent state sales tax on food will provide roughly $230 million per year of tax relief for 7.6 million Virginians in nearly 3 million households. Eliminating the corporate income tax on businesses making less than $100,000 per year will provide $10 million in tax relief to 22,000 businesses. Lowering the personal income tax rate to 5.6 percent for people making between $17,000 and $75,000 per year will provide $130 million in tax relief to more than 1.4 million Virginians.
Currently revenue from one percent of the state sales tax on food is dedicated to local governments for public education, and revenue from the remaining one-half percent is dedicated to the Transportation Trust Fund.
“It was absolutely critical to craft this bill in a way that provides the tax relief while protecting those vital resources,” said Englin.
To accomplish that, the proposal would raise the income tax rate on people making more than $400,000 per year by 1.1 percent, affecting roughly 30,000 Virginians, or the wealthiest four-tenths of a percent of the state’s population. Moreover, the legislation is written to ensure that there is no change in the amount or the timing of the current funds that go to local governments for public education and to the Transportation Trust Fund.
I do not come even close to making $400K per year. But what I do know, is that people who do, buy things. The last thing we need to do in a down economy is raise taxes – on anyone – but in particular not on those who provide the fuel for making the economy better.
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About the author
Conservative to the core; liberal with his opinion! J.R. has been involved in politics for over a decade and has worked on several campaigns in Hampton Roads. He has served on the Executive Committee of the Republican Party of Chesapeake and the Central Committee of the Republican Party of Virginia. He is also the director of “Blogs United” in Virginia. E-mail J.R.. Follow J.R. on Twitter.
Comments
12 Responses to "Caucus focus – Week in review"
Its time for an intellectual debate here on bearing drift
What will help the economy more
Doing nothing
or giving a tax cut to 1.4 million people
30,000 people will pay more in taxes.
J.R. has argued this will hurt the economy because these people will somehow not be able to provide the fuel to make the economy better
My counterargument the fuel of the economy is 70-80 percent consumer spending. I am highly doubtful any of these 30,000 people will even notice they have less money. Furthermore, to think that somehow this 1.1% tax increase will somehow reduce the activity of these folks (no offfense J.R. but this border on the insane
Can anyone argue with J.R. that somehow this is a bad idea.
FYI this is the same tactic Obama did. Tax cuts for a majority should be a Republican talking point. The Rs have done nothing and the Ds have stolen it.
One other thing you do realize J.R. you are carrying the argument for as you admit less than .5% of all Virginians
Lets see here elections results Ds 99.5 Rs .5
Nova, anyone who would like to pay more to Richmond is free to write a check.
The Bush “stimulus checks” should tell you all you need to know about how your theory works. Give lots of people a little bit of money, and what happens?
Nothing!
They pay some credit cards.
It’s investment that create jobs, and capital doesn’t come from $30,000 per year workers. It comes from wealthy people putting their capital at risk in hopes of earning a return.
A tax policy that shrinks the available capital for an economy is mortgaging its future.
Its going to be an agree to disagree
70-80 of the economy is consumer spending
I also agree with this
It comes from wealthy people putting their capital at risk in hopes of earning a return. Taking 1% isn’t going to make very much different to these people.
Ignoring that look at the larger issue politically
Dem press release….
We are for working families… We offered tax cuts for over 1 million Virginians. The republicans blocked it. Once again we show who is the party for actual Virginians and which party cares more about the fat cats.
Like I said you can’t expect to win taking positions that only benefit the top .5% and going against programs that benefit almost everyone. The electoral math is a disaster.
Pelosi is a moron and an idiot. She is making a fool of herself on ABC this morning.
Nova, I’m happy to agree to disagree with you. The Democrats’ income tax cut amounts to a whopping $92 per person. Whatcha gonna buy? A new home? A new car? A widescreen TV?
What jobs will be created by giving everyone $1.79 per week?
Press Release- Democrats income tax cut – you can go to Starbucks once a month!
Brian,
From what I heard, there was a noticeable uptick in economic activity that corresponded to when the Dubyah stimulus checks started going out and ended shortly after the last checks were mailed.
I know many people did not rush out and spend the money. I did not for example. I just deposited it into my savings account. However some people did go out and immediately spend the windfall.
However I will fess up that the check is coming in handy now, it will help me to continue paying the college tuition bills for my kids during these times of slow freight. Freight is always slower this time of year, but it is exceptionally brutal out there right now.
Except, David, that it won’t be a check. It will be a tax rate reduction that will impact you when you file in 2010.
Don’t get me wrong. Any tax cut is good. But it’ll come in handy for you about 13 months from now.
I agree that HB2588 is an attempt at class warfare. “Vote for us because we’ll take from the rich and give to the poor.” However, they’re only taking from the rich who have incomes. There’s nothing in this bill that would take from the rich who don’t have incomes. This begs the question: How many rich people have taxable incomes? Any rich person with a good tax accountant or lawyer knows how to shield/shelter their income/wealth from the income taxman. A better solution would be to reduce the state sales tax on the basic necessities of life including most food items, and then increase the state sales tax on the luxuries of life (including such things as lobster, caviar, Mercedes, Lexus, yachts, vacation houses, etc.). This would offset the revenue loss from lower/middle class with revenue gains from the truly rich people. It would allow the people to decide when taxes are to be paid and alleviate the perceived need by the state government to penalize someone who makes more than $400K per year. Stop the income envy and let the rich pay more by taxing the life luxuries that they can’t live without. This would be a “fair” tax.
Brian,
Do you know something I do not on this?
The last stimulus check was not taken back from me through increased taxes at the end of the year. Is this one going to be different?
yes. It’s Virginia only, and it’s simply a rate change.
Just to be crystal clear, the Middle Class and Small Business Tax Relief Act (HB 2588) is not a formal House Democratic Caucus bill, although at least 1/3 of the House Democratic Caucus are signed on as co-patrons.
Don Raltz – You argue that, “A better solution would be to reduce the state sales tax on the basic necessities of life including most food items…” I want to make sure you understand that HB 2588 would completely eliminate the state current 1.5% state sales tax on food, which is a $230 million per year tax cut.
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