Yesterday, the Commonwealth Institute for Fiscal Analysis and Institute for Taxation and Economic Policy released a report examining the tax plans of all three gubernatorial candidates and their potential impacts on Virginians.
For Immediate Release
Date: September 14, 2017
Contact: Ofirah Yheskel, ofirah@ralphnortham.com
What They’re Saying: $1.4 Billion Price Tag on Ed Gillespie’s Tax Cut Plan For Millionaires and Billionaires
New Analysis Shows Cuts For Top 1% Paid For With Cuts To Priorities
Richmond, Va. — Yesterday, the Commonwealth Institute for Fiscal Analysis and Institute for Taxation and Economic Policy released a report examining the tax plans of all three gubernatorial candidates and their potential impacts on Virginians. The report undermines the Gillespie campaign’s claims that their tax cut would result in $1,285 in estimated savings for an average family of four. In fact, the Commonwealth Institute stipulates that level of savings would only be available to a household with a gross income of over $229,000.
The phony math doesn’t end there, with the analysis showing Gillespie’s proposal would cost the commonwealth $1.4 billion in revenue when fully phased in and result in an average tax cut of $14 (0.1 percent of household income) for Virginia households with incomes less than $22,000, while providing a tax cut of over $7,000 (0.4 percent of household income) for the highest-income 1 percent of households who have annual incomes over $624,000.
Middle-income households–those with incomes between $41,000 and $67,000 a year–would see an average tax cut of $147.
Northam Campaign Communications Director, David Turner, released the following statement on the analysis confirming Ed Gillespie’s tax plan is based on phony math:
“Murky swamps are where Washington gators like Ed Gillespie do their best work, so it’s a good thing Virginians will now have a clear picture of what his tax plan will really mean: cuts to key services. Even independent economists agree that Ed Gillespie’s tax plan just doesn’t add up. There’s no fudging the numbers; Gillespie has outlined tax cuts to benefit the top one percent, while jeopardizing key priorities like education, transportation, and public safety, not to mention the commonwealth’s commitment to fiscal responsibility and our AAA bond rating. As a state senator and lieutenant governor with experience in Richmond, Dr. Ralph Northam knows the Virginia way is to get both sides of the aisle together to take on tax reform that is fairer, simpler, and fiscally responsible while keeping core investments that build the workforce of tomorrow and expand access to healthcare.”