Longtime conservative leader, 2014 U.S. Senate nominee, and 2017 Republican candidate for governor Ed Gillespie reacted this morning to S&P Global Ratings’ decision to change the outlook on Virginia’s “general obligation (GO), appropriation-backed, and moral obligation debt” to negative from stable. In the report, S&P noted challenges facing the Commonwealth’s economy, writing, “However, state data demonstrate that recent job growth has been predominately in lower paying occupations, and continued decline in federal contractors and overall weak wage growth contributed to weaknesses in withholdings.”
Speaking about the change to a negative outlook, Ed Gillespie stated, “Virginia’s economy is facing significant structural challenges. We’re at a critical juncture, and we need to get our economy moving again. Both Ralph Northam and Tom Perriello want bigger government and higher taxes. I strongly disagree. It is time instead to cut individual income tax rates across the board to spark the natural, organic economic growth our Commonwealth needs. By allowing Virginians to keep more of their hard-earned tax dollars, we will reenergize our economy, spur much needed private sector job creation and restore Virginia’s rightful place as one of the top states in the nation in which to do business. This, combined with other fundamental changes to our education and workforce systems and a new approach to economic development and regulatory reform, is how we can best work to grow and diversify our economy to benefit all Virginians in the years ahead.”
The S&P report identified some of the most pressing issues facing Virginia’s economy, including withdrawals from the Commonwealth’s Revenue Stabilization Fund (known as the Rainy Day Fund) and anemic revenue growth that poorly positions Virginia to respond to potential future spending cuts at the federal level. These are the same issues Ed Gillespie is discussing everyday with Virginians across the Commonwealth, and why he has put forward a detailed plan to cut individual income tax rates by ten percent across-the-board and put more money in the pockets of Virginia’s families. Ed Gillespie is working closely with leaders in the General Assembly to enact growth-oriented policies that will protect our bond rating and provide more opportunity for Virginians. You can read more about Ed’s plan to cut Virginia’s income tax rates for the first time in state history here.