During his campaign for governor last year, candidate Bob McDonnell promised to make Virginia a state that fostered business development and set up an environment to make it easier for businesses to thrive, and create private sector jobs. A large part of his promises included reducing taxes and red tape on businesses.
“Bob’s for Jobs“, who can forget that slogan.
At this point, we all can. It was simply not true. Words spoken to get elected.
The Richmond Times Dispatch reported:
That came despite a May revenue report in which tax collections declined. General fund revenue collections fell 0.2 percent in May compared with May 2009, but state officials said the figures beat their projected figure.
“We’re certainly tracking the right way,” McDonnell said after a bill-signing ceremony at St. John’s Church in Richmond. “We’ve had three months in a row that have been encouraging.
“This one’s just slightly negative but still a couple points ahead of forecast. If we just are flat for June, we should have a $130 to $140 million surplus.”
But there is just one detail they are leaving out. The budget surplus is not due to any economic rebound. It is due to an accounting gimmick that will cost businesses millions of dollars in interest expenses as they are forced to pay Sales Taxes for June, 2010 in June!
Businesses are being forced to borrow money to pay state sales taxes before the merchandise is even sold! Governor McDonnell is forcing businesses struggling to keep their doors open to pay these taxes in order to collect 13 months of sales tax revenue in the 2010 fiscal year.
So, there will be no surplus without snatching money that should be a part of the 2011 fiscal year. And rather than correct the problem by having only 11 months of tax revenue in 2011, Bob McDonnell has magnanimously decided to extend the tax grab every year until he is out of office, leaving the 11 month fiscal year for the next governor.
So, while the General Assembly has tried to outlaw Payday Loans, Bob McDonnell has now forced businesses to borrow money to give the state a Payday Loan. And he will give this money out to state workers in the form of bonuses.
Under President Obama, the Federal Payroll has swelled to epic proportions. It looks like Virginia Governor Bob McDonnell is using the Obama playbook.
Any surplus should be returned to the businesses who had to borrow money to pay for McDonnell’s accounting scam in the form of tax credits for interest paid. Not given away to state workers, who are lucky to have jobs. And this accounting scam should be stopped in fiscal year 2011. McDonnell should be required to deal with his own mess, and not pass the buck to the next governor.
If the “surplus” is given away to state workers as a bonus, at the expense of businesses already in trouble, this is simply a broken promise by Bob McDonnell.
Shortly after winning the governor’s race, Bob McDonnell called his supporters and asked that we hold his feet to the fire on his campaign promises. We intend to do just that.