RELEASE: Ed Gillespie’s Tax Plan Stacks the Deck Against All but the Wealthiest Virginians and Leaves Families in Poverty Behind, New CAP Action Analysis Shows
Washington, D.C. — Under Virginia gubernatorial candidate Ed Gillespie’s tax plan, people at the very top of the income scale would get much bigger tax cuts than those below them, with hardly any Virginia families living in poverty getting even a penny in tax cuts, a new analysis from the Center for American Progress Action Fund shows. The column released today is based on analysis from the Institute for Taxation and Economic Policy.
“We’ve seen how trickle-down tax cuts failed miserably in Kansas under Republican Gov. Sam Brownback,” said Harry Stein, director of Fiscal Policy at CAP Action. “Just like in Kansas, Ed Gillespie’s tax plan would mean a Virginia where the rich get richer, the economy grows slower, and vital services such as education and health care are threatened and slashed.”
As CAP Action’s column explains, Virginia’s income tax is structured in such a way that virtually no families living in poverty would see any benefit from Gillespie’s tax plan. Virginia’s tax filing threshold was $11,950 for single filers and $23,900 for married couples filing jointly in 2016. Those making less than this threshold do not owe state income taxes—though they of course still pay sales and property taxes—meaning that they would receive no benefit from Gillespie’s proposal. Furthermore, Virginia provides a nonrefundable income tax credit, the Credit for Low Income Individuals, for individuals and families in poverty. As a result, a family of four with an annual income of $24,300 or less would not receive a tax cut under Gillespie’s plan.
“Ed Gillespie claims that his tax plan would cut taxes for all Virginians. That’s false. Families in poverty will see nothing from Ed Gillespie’s tax plan, but the top 5 percent richest Virginians would receive a whopping 38 percent of the tax cuts,” said Alex Rowell, research associate at CAP Action.
Read “How Ed Gillespie’s Virginia Tax Plan Stacks the Deck Against All but the Wealthiest Virginians” by Harry Stein and Alex Rowell.
For more information or to speak with an expert, contact Allison Preiss at email@example.com or 202.478.6331.