Longtime conservative leader, 2014 U.S. Senate nominee, and 2017 Republican candidate for governor Ed Gillespie released his “Cutting Taxes for ALL Virginians” Plan on Thursday. Several economists and tax experts praised the plan, including Grover Norquist, Stephen Moore, Doug Holtz-Eakin, Jonathan Williams, Old Dominion University Board of Visitors Professor of Economics and President Emeritus Dr. James V. Koch, Dr. Stephen Fuller, and former President of the Virginia Association of Economists Dr. Fletcher Mangum.
“Our Commonwealth is at a critical juncture,” said Gillespie. “We can either remain stuck in neutral with a stagnant economy, or we can put forward a policies to spark economic growth, create private-sector jobs, raise take-home pay, help people lift themselves out of poverty, and make life better for all Virginians. Economists and tax experts at the national and state level have looked at this plan and confirmed that it will grow our economy and make Virginia more competitive.”
Norquist, the founder and president of Americans for Tax Reform said, “Ed Gillespie has demonstrated a real and measurable commitment to cutting taxes, with an actual policy proposal and not just political rhetoric. Ed’s plan is a genuine tax cut for families and businesses, not like the so-called ‘revenue-neutral’ plans that shift the tax burden from one group of taxpayers to another that we so often see from political candidates. I am impressed and Virginia taxpayers should be too, since it will make their Commonwealth more competitive with surrounding states again.”
“Few states have lost economic competitiveness to its neighbors as much as Virginia,” said Moore, a Senior Economic Advisor to Donald Trump and Economic Consultant with FreedomWorks. “What was once one of the lowest-tax and lightest regulation states has now moved down the scales. Maryland, West Virginia, Tennessee, and Pennsylvania have been cutting taxes and red tape, while Virginia has increased burdens on its citizens and its small businesses. Ed Gillespie’s tax plan will reduce income taxes for all families and employers and will be a shot of steroids into the commonwealth economy.”
Holtz-Eakin, the American Action Forum President and a former Chief Economist of the President’s Council of Economic Advisers said, “Ed Gillespie’s pro-growth plan will foster private-sector job creation by lowering the cost of doing business and increasing the Commonwealth’s competitiveness. Ed understands that the best way to encourage natural and robust economic growth is through fundamental policy shifts, not bigger government grants and incentives.”
“Virginia’s economy has fallen behind, just by standing still,” said Williams, the author of Rich States, Poor States. “While other states like North Carolina have moved ahead with bold tax reform plans that will enhance economic growth, Virginia’s antiquated tax code is a harmful obstacle standing in the way of innovation and economic opportunity. Ed Gillespie’s tax reform plan will change that by making Virginia more competitive, lowering the cost of doing business, and growing the economy. This is a strong plan that will lead to meaningful results for the hardworking taxpayers of the Commonwealth.”
Koch said, “Virginia’s economy has grown more slowly than the U.S. economy six years in a row. Improving our tax competitiveness is one of several things we need to do to change this picture.”
“Attracting and retaining a talented workforce is essential for achieving long-term economic growth in the Commonwealth of Virginia,” said Fuller, the Dwight Schar Faculty Chair and University Professor and Director of the Stephen S. Fuller Institute for Research on the Washington Region’s Economic Future’s. “Lowering the personal tax burden in Virginia will send a message that the Commonwealth is aggressively positioning itself to compete with its peer states for future growth by establishing a favorable personal tax environment that will attract and retain the workforce needed to support increased business investment and attract high-value added jobs to the State. Reducing the personal tax burden on the State’s residents will contribute to achieving a competitive workforce advantage that will fuel more rapid economic growth in the future.”
Mangum said, “Virginia has benefited for many years from above average federal government spending. But at $13.1 trillion in debt today and a projected $22.1 trillion in ten years, the federal government has maxed out its credit card. We desperately need to diversify our economy away from an over-dependence on government spending. By putting more money in the hands of the sole proprietorships, partnerships, and other pass-through entities that comprise the overwhelming majority of businesses in Virginia, this plan will encourage private sector growth and foster the economic diversification that we need.”
Gillespie’s plan calls for a ten percent across-the-board cut in Virginia’s individual income tax rates, the first income tax rate cut since rates were established in 1972. Once enacted, the plan will put nearly $1,300 more back into the pockets of a family of four and create more than 50,000 new full-time private-sector jobs. The full plan can be found here.