UPDATE: Cuccinelli plan: Slash Virginia taxes, close loopholes
Updated On: May 07 2013 07:23:28 PM EDT
Republican Ken Cuccinelli is proposing to slash taxes by $1.4 billion, including cutting corporate tax rates by one-third if he's elected governor.
He said in his first policy news conference at a Richmond yogurt store on Tuesday that he'd offset the individual and business income tax cuts by eliminating a broad range of exemptions and other incentives.
Cuccinelli also said he wouldn't repeal the first transportation funding reform law in 27 years passed this year, even though he consistently opposed it and almost derailed it with a legal opinion in February.
The Republican attorney general's event comes amid a statewide "official launch" of Democratic rival Terry McAuliffe's campaign, done six months after he declared his candidacy.
Democrat Terry McAuliffe has proposed a review of tax policy, and reduction of some taxes targeting business, but his campaign says Cuccinelli's plan would result in a budget crisis:
Statement from McAuliffe Policy Director Evan Feinman on Ken Cuccinelli’s tax announcement:
While Ken Cuccinelli has focused his career on divisive social issues like restricting women's health, his new foray into economic issues shows that he puts ideology ahead of sound fiscal management in Virginia. Cuccinelli's proposal would lead to a budget crisis that could undermine education, force localities to dramatically raise property taxes, and threaten the Commonwealth's bond rating. Under Governors Warner, Kaine and McDonnell, Virginia has maintained its reputation as a well-managed state but Cuccinelli's unrealistic and ideological plan would undermine that tradition. Virginians know there is no such thing as a free lunch.
Equally unrealistic is Cuccinelli's bizarre attempt to claim that he supported the recent work of Governor McDonnell. Cuccinelli's attempts to claim credit for McDonnell's signature transportation compromise have been mocked in the past since it is well-documented Cuccinelli was one of the extremists who tried to derail the bipartisan plan.
Terry McAuliffe has proposed realistic, mainstream solutions to make Virginia the best for business including responsible local tax reform, strengthening workforce training, streamlining economic development and diversifying Virginia's economy. While Cuccinelli tried to stop Governor McDonnell's transportation plan at each and every step, Terry was proud to encourage passage of the bipartisan compromise that will reduce gridlock and improve competitiveness.