Think Tank Issues Criticism of Governor and State Legislature
On tax day, one think tank has issued criticism of Governor McDonnell and the state legislature for what they say is a six million dollar tax increase on Virginian families.
Yesterday The Commonwealth Institute issued a report saying that the budget passed by the General Assembly and approved by the Governor would increase taxes as much as $200 on 114,000 Virginia families earning less than $49,000 a year, by decoupling the state’s earned income tax credit from the federal earned income tax credit.
Given the study’s findings, the group’s director Michael Cassidy said he was disappointed by continued assertions from the Governor and legislators that the current budget would not include any additional tax increase.
Cassidy: The Federal Recovery Act improved the earned income tax credit by allowing a larger credit amount for families with three or more children. What has happened in the state budget is those improvements have been disallowed.
McDonnell spokesman Tucker Martin dismissed the Commonwealth Institute’s claims.
Martin: If that organization was interested in low taxes and reduced spending, they’d be issuing a press release today thanking Bob McDonnell for cutting this shortfall through spending reductions, not tax increases, and getting rid of Tim Kaine’s 2 billion dollar proposed tax increase.
Martin reiterated that the policy would not take effect until taxable year 2010 and that the Governor would address the issue before it could affect any Virginian families.
Craig Carper, WCVE News, Capitol Square.