Richmond, VA - In the midst of their barrage of attack ads, Crossroads GPS has clearly run out of things to say. Today, Karl Rove’s Washington DC based super PAC rehashed and recycled outdated attacks that have been criticized by fact checkers and that distort Tim Kaine’s record of pursuing strategies that helped Virginia earn accolades for business friendliness and good management.
"When they throw everything but the kitchen sink at you, all that's left is the kitchen sink and the garbage disposal, and that's what Crossroads is offering in their latest ad," said Kaine for Virginia spokeswoman Brandi Hoffine. "Virginia voters know Tim Kaine cut taxes for tens of thousands of residents, eliminated the estate tax, and kept tax burdens lower under his administration than George Allen did when he was governor. Regurgitating debunked claims doesn't change that. It also doesn't make George Allen's plans to slash Medicare, education, infrastructure spending, and programs that benefit our veterans and low-income Americans, all to preserve tax breaks for wealthy Americans like him and big oil companies, any more attractive to Virginia voters. We tried it George Allen's way, we can't afford to try it again."
This is Karl Rove's 14th attempt to boost George Allen’s campaign with false, misleading ads. Tim Kaine twice offered George Allen opportunities to reach an agreement limiting the influence of these outside groups on this Senate race and George Allen twice declined, opting instead to bolster his re-election campaign with out-of-state, negative advertising.
Quick Facts You Should Know
Kaine Left The Overall Tax Burden On Virginians Lower Than Allen. [Tax Foundation, accessed 11/28/11] Allen Inherited Giant Surplus And Turned It Into A Massive Federal Deficit. [CNN, 9/27/2000; Washington Post, 10/8/04] As Senator, Allen Voted To Add $3 Trillion To The National Debt, Adding Over $16,000 To The Debt Every Second He Was In Office. [PolitiFact Virginia, 4/15/11]
Kaine Signed Legislation That “Would Remove About 140,000 Low-Income Virginians From The Tax-Rolls.” [Roanoke Times, 3/22/07]
Kaine Ended Virginia’s Estate Tax In Order To Make Virginia More Competitive In Attracting “Small Businesses And Retirees.” [Wall Street Journal, Editorial, 9/6/06]
Full Fact Check:
CLAIM: “Tim Kaine loves taxes.”
FACT: Kaine cut taxes as governor.
KAINE ELIMINATED THE ESTATE TAX AS GOVERNOR
Kaine Ended Virginia’s Estate Tax In Order To Make Virginia More Competitive In Attracting “Small Businesses And Retirees.” A Wall Street Journal editorial wrote, “Democratic Governor Tim Kaine and the Republican-controlled legislature struck a deal to abolish the state's estate tax. […] The tax only brings in about $140 million a year to Richmond from several hundred estates, but the levy has made it harder for Virginia to compete for small businesses and retirees with Florida and the 24 other states that no longer have a death tax.” [Editorial, Wall Street Journal, 9/6/06]
KAINE REMOVED 140,000 OF LOW-INCOME VIRGINIANS FROM STATE INCOME TAX ROLLS
Kaine Signed Laws That “Would Remove About 140,000 Low-Income Virginians From The Tax-Rolls.” The Roanoke Times reported, “Gov. Tim Kaine has signed legislation that would remove about 140,000 low-income Virginians from the tax rolls… Kaine signed bills…that will gradually increase the state income tax filing threshold from $7,000 to $11,950 for individuals and from $12,000 to $23,900 for married couples. The bills also increase the personal exemption from $900 to $930 for all taxpayers.” [Roanoke Times, 3/22/07]
KAINE SIGNED THREE SALES TAX HOLIDAYS: SCHOOL SUPPLIES, HURRICANE PREPAREDNESS, AND ENERGY EFFICIENT ITEMS
Kaine Signed Bills Creating Tax Holidays “On School Supplies And Clothing.” According to the Washington Post, “Virginians will enjoy a three-day sales tax holiday on school supplies and clothing. The bills Kaine signed during a ceremony at the state Capitol lift the state's 5 percent tax on such items for a long weekend each August. . . . Consumers will not have to pay taxes on school supplies that cost $20 or less per item and on clothing and shoes that cost $100 or less per item. That weekend, businesses also can choose to pay the tax on other items for their customers and advertise those items as tax-free, a practice that had been illegal. Kaine, who was joined by several lawmakers and business lobbyists, said the new holiday would save shoppers at least $3.6 million a year.” [Washington Post, 6/3/06]
Kaine Signed “Sales Tax Holiday For Hurricane-Preparedness Supplies.” According to the Roanoke Times, “A separate sales tax holiday for hurricane-preparedness supplies will not take effect until 2008. Kaine signed a bill (SB 1167) that will exempt the sales tax on supplies such as portable generators, carbon monoxide detectors, batteries and cellphone chargers for a one-week period in May beginning next year.” [Roanoke Times, 3/22/07]
Kaine Signed Bills That Created Tax Holiday For The “Purchase Of Energy-Efficient Appliances.” According to the Roanoke Times, “Kaine also signed bills…creating a four-day sales tax ‘holiday’ each October for the purchase of energy-efficient appliances. During the holiday period…the state sales tax will be waived on appliances such as dishwashers, washing machines and refrigerators that meet federal Energy Star standards and sell for $2,500 or less.” [Roanoke Times, 3/22/07]
FACT: Virginians paid a lower percentage of their income in state taxes under Kaine than they did under Allen.
PolitiFact: While Allen Was Governor, Virginians Paid 5.6 Percent Of Their Income In State Taxes; While Kaine Was Governor, They Paid 5.3 Percent. PolitiFact Virginia wrote, “Congressional Quarterly’s figures show that during Allen’s governorship, yearly state tax revenues averaged 5.6 percent of all the income earned by Virginians; over Kaine’s term, the average was 5.3 percent.” [PolitiFact Virginia, 10/15/12]
CLAIM: “As governor, Kaine pushed tax hikes on people making just $17,000 a year.”
FACT: Kaine’s budget actually proposed swapping one tax for another, finally ending the car tax.
Kaine Proposed “Eliminating The State’s Expensive Car Tax Relief Program And Replacing It With A 1 Percent Surcharge To The State’s Income Tax.” According to the Roanoke Times, “In his final budget, Kaine cut a couple billion more, then made up the rest of a $4.2 billion shortfall by eliminating the state’s expensive car tax relief program and replacing it with a 1 percent surcharge to the state’s income tax. The reviled car tax would be eliminated by funneling some of the $1.9 billion raised by the tax to localities.” [Roanoke Times, 2/14/10]
Kaine Argued “The Right Way To Eliminate” $950 Million Annual Car Tax Payment Was To “Give Local Governments A Better Revenue Source In Exchange.” According to a December 2009 press release issued by Kaine’s office, Kaine said, “Now, I am mindful of what happens if we do not make this payment. Local car tax bills will be issued without the reduction created by the state payment. And so, local taxpayers will receive higher car tax bills. So, let me offer a second idea. Let’s keep the promise. Let’s get rid of the car tax on personal vehicles completely, but do it the right way. The car tax is particularly objectionable because it requires citizens to write a large check once or twice a year. The right way to eliminate this tax is to give local governments a better revenue source in exchange. We should impose a 1% income tax surcharge in Virginia and give 100% of the revenue to local governments in exchange for their agreement to completely eliminate the property tax on all personal cars, trucks and motorcycles. This will diversify local revenues in a way that will help cities and counties manage through some of the painful cuts we have announced here. It will create an additional base of state revenue that can be used to prudentially expand our ability to issue state-backed debt. And, it will show the citizens that we can keep a promise by getting rid of the car tax once and for all.” [Press Release, Office of Governor Kaine, 12/18/09]
FACT: Allen’s outgoing budget also tried to phase out the car tax, with disastrous results.
Allen Proposed Abolishing Car Tax In His Outgoing Budget. The Virginian-Pilot reported, “Gov. George F. Allen told key legislators Friday that he will include $260 million in the two-year budget he will propose next month to begin abolishing the personal property tax on most cars.” [Virginian-Pilot, 11/15/97]
- Allen Said He Ran The Numbers On Gilmore’s Car Tax Proposal And Said The Plan Would Work. Richmond Times-Dispatch, “Gov. George Allen, who had been briefed on the plan by Gilmore Monday, endorsed the plan after running the numbers through the Department of Motor Vehicles' computers. Those figures show that there are 4,119,900 personal cars, trucks and vans registered in Virginia. Allen told reporters yesterday that the plan is feasible. With a booming economy and a record number of people working, there should be sufficient tax revenues to reimburse the localities, he said.” [Richmond Times-Dispatch, 5/10/97]
- 1997: After Allen Proposed Car Tax Phase-Out, Gilmore Said He Was “Confident Allen’s Numbers Will Work.” The Washington Post reported, “Outgoing Virginia Gov. George Allen (R) has informed leaders of the General Assembly that he will include money in his two-year budget proposal next month to begin carrying out his Republican successor's plan to cut the car tax. . . . Allen's spending blueprint will become the basis for debate -- and competing proposals -- when the General Assembly convenes Jan. 14, three days before Gilmore is sworn in. . . . Gilmore, who spoke yesterday at a meeting of House Republicans, rejected the skepticism, saying he is confident Allen's numbers will work.” [Washington Post, 11/16/97]
- Allen: “Specifically, I Am Recommending…The First Installment Toward Gilmore’s Great Idea To Effectively Eliminate The Personal Property Tax On Cars…” In his final State of the Commonwealth address, Allen said, “In the next budget, Virginia's robust economy is expected to add $ 1.8 billion in additional general fund revenues. Consistent with our principles and Virginians' dedication to responsible fiscal management, not all of this money is being spent. A full one-third of this additional revenue is going to savings for a rainy day or for tax relief. Our strong economy enabled me to propose that a ‘dividend’ be returned to Virginia's shareholders - the people of Virginia. Specifically, I am recommending the following tax cuts: The first installment toward [Gov.-elect] Gilmore's great idea to effectively eliminate the personal property tax on cars, pickup trucks and vans.” [Governor Allen’s State of the Commonwealth Address, 1/14/98]
2004: “Allen Played A Key Role In Virginia's Fiscal Chaos.” In an op-ed headlined, “Allen Played A Key Role In Virginia's Fiscal Chaos,” Jeff Schapiro of the Richmond Times-Dispatch wrote: “U. S. Sen. George Allen spent several hours this past Monday clomping about the state Capitol, at one point - are you sitting down? - reminding fellow Republicans to be tight with taxpayer dollars. And this, on the very same day that the Congressional Budget Office predicted a $2.4 trillion deficit over the next decade, from the very same guy who - first as governor and now as a senator - has been spending like a Democrat. . . . [T]here is a sense that Allen, regardless of his image as the cheery, chaps-wearing savior of the Virginia Republican Party, is the wrong role model to roll out in the high-stakes debate over taxes and spending. Simply put: He lacks credibility on fiscal issues. . . . Allen wrote a record farewell budget fattened by almost $4 billion. . . . The budget also provided nearly $350 million in tax cuts, most of it a down payment on Gilmore's car-tax rollback, which has doubled in cost and been frozen at 70 percent since 2001 because the state can't afford a full phaseout. The no-car-tax plan and the run on the state's credit card that accelerated under back-to-back Republican governors has rattled Wall Street and could cost Virginia its cherished Aaa bond rating, the highest possible. But Allen was long gone from Mr. Jefferson's Capitol by the time his policies exacted their toll on the state's ledger.” [Op-Ed, Jeff E. Schapiro, Richmond Times-Dispatch, 2/1/04]
CLAIM: “Then Kaine backed Obamacare and its tax on the middle class…”
FACT: The Affordable Care Act is helping the middle class.
INSURANCE COMPANIES WILL PAY $1.1 BILLION IN REBATES IN 2012 UNDER THE AFFORDABLE CARE ACT, OVER $43 MILLION IN VIRGINIA
Insurance Companies Will Pay $1.1 Billion In Rebates In 2012 Under Affordable Care Act, Benefitting Nearly 13 Million Americans, Including 686,738 Virginians. The Washington Post reported, “Millions of consumers and businesses will receive rebates totaling $1.1 billion this summer from health insurance plans that failed to meet a requirement of the new health-care law, according to the Department of Health and Human Services. That Affordable Care Act rule requires insurance companies to spend at least 80 percent of subscriber premiums on health-care claims and quality-improvement initiatives. The other 20 percent is left for administrative costs and profits. Health insurance plans that don't meet that threshold will send a rebate to consumers to cover the difference. . . . In a new report, the Obama administration found that 12.8 million Americans will receive rebates this year, with an average value of $151. . . . The rebates, which must be sent out by Aug. 1, will go to those in both individual and group plans, with the amount varying by state. . . . Rebates will average…$115 for 686,738 in Virginia. Not all the money will flow directly to consumers: For those who receive insurance through their workplace, the health insurance plan will send a rebate to the employer. It is then the employer's responsibility to either pass that rebate on to the individual or use it in other ways that may benefit the employee, such as lowering premiums for the next year.” [Washington Post, 6/21/12; U.S. Department of Health and Human Services Report, 6/21/12]
Insurance Companies Will Pay $43 Million In Rebates To Virginia Consumers And Businesses. A report from the U.S. Department of Health and Human Services stated that insurance companies will pay over $43 million in rebates to Virginia consumers and businesses under the Affordable Care Act’s 80/20 rule. A total of 686,738 Virginians will benefit from the rebates, with the average rebate per family totaling $115. [U.S. Department of Health and Human Services Report, 6/21/12]
66,000 YOUNG ADULTS IN VIRGINIA ARE NOW ON FAMILY INSURANCE PLANS
66,000 Young Adults In Virginia Gained Insurance Coverage As A Result Of The Affordable Care Act. From Healthcare.gov: “Health plans are now required to allow parents to keep their children under age 26 without job-based coverage on their family coverage, and, thanks to this provision, 3.1 million young people have gained coverage nationwide. As of December 2011, 66,000 young adults in Virginia gained insurance coverage as a result of the health care law. For more details on these numbers, visit here.” [Healthcare.gov, Accessed 7/16/12]
OVER 1 MILLION VIRGINIANS ON MEDICARE HAVE TAKEN ADVANTAGE OF FREE PREVENTATIVE SERVICES
In 2011, 837,645 Virginians On Medicare Received Free Preventive Services, Including Mammograms And Colonoscopies, Because Of The Affordable Care Act. [Healthcare.gov, Accessed 7/16/12]
In The First Six Months Of 2012, 474,827 People With Medicare Received Free Preventive Services Because Of The Affordable Care Act. [Healthcare.gov, Accessed 8/22/12]
1,155,428 Virginians Are Enrolled In Medicare. [Kaiser Family Foundation, State Health Facts, Accessed 7/20/12]
AFFORDABLE CARE ACT HELPS SENIORS WHO FALL IN THE “DONUT HOLE,” SAVING VIRGINIA’S SENIORS AN AVERAGE OF $635 A YEAR ON PRESCRIPTION DRUGS
In 2012, Under the Affordable Care Act, Over 16,000 Virginians On Medicare Saved Over $600 On Prescription Drugs On Average. According to Healthcare.gov: “Thanks to the new health care law, 84,977 people with Medicare in Virginia received a $250 rebate to help cover the cost of their prescription drugs when they hit the donut hole in 2010. Since the law was enacted, Virginia residents with Medicare have saved a total of $83,949,689 on their prescription drugs. In the first five months of 2012, 16,509 people with Medicare received a 50 percent discount on their covered brand-name prescription drugs when they hit the donut hole. This discount has resulted in an average savings of $635 per person, and a total savings of $10,489,831 in Virginia. By 2020, the law will close the donut hole.” [Healthcare.gov, Accessed 7/16/12]
AFFORDABLE CARE ACT HAS EXPANDED ACCESS TO PREVENTIVE SERVICES TO APPROXIMATELY 47 MILLION WOMEN NATIONWIDE, OVER 1 MILLION WOMEN IN VIRGINIA
Under The Affordable Care Act, 47 Million Women Nationwide And Over 1 Million In Virginia Gained Access To Preventive Services. According to Healthcare.gov, “But for women especially, it’s a new day. Beginning August 1, women in Virginia can now get coverage— without cost-sharing—of even more preventive services they need. Approximately 47 million women will now have guaranteed access to additional preventive services without cost-sharing for policies renewing on or after August 1, 2012, including 1,376,205 in Virginia.” [Healthcare.gov, Accessed 9/19/12]
Many Health Plans Now Cover Contraceptive Services And Additional Preventive Services With No Cost-Sharing. According to Healthcare.gov: “Beginning in August, many health plans will cover additional preventive services with no cost-sharing, including well-woman visits, screening for gestational diabetes, domestic violence screening, breastfeeding supplies and contraceptive services.” [Healthcare.gov, Accessed 7/18/12]
AFFORDABLE CARE ACT HAS EXPANDED ACCESS TO PREVENTIVE SERVICES TO 54 MILLION AMERICANS ON PRIVATE INSURANCE, INCLUDING 1.5 MILLION VIRGINIANS
Under The Affordable Care Act, 54 Million Americans With Private Insurance, Including 1.5 Million Virginians, Gained Access To Preventive Service Coverage With No Cost-Sharing. According to Healthcare.gov, “Because of the law, 54 million Americans with private health insurance gained preventive service coverage with no cost-sharing, including 1,519,000 in Virginia.” [Healthcare.gov, Accessed 9/19/12]
INSURANCE COMPANIES ARE NO LONGER ABLE TO DENY COVERAGE TO CHILDREN WITH PRE-EXISTING CONDITIONS
Under The Affordable Care Act, “Job-Based Health Plans And New Individual Plans Are No Longer Allowed To Deny Or Exclude Coverage For Your Children (Under Age 19) Based On A Pre-Existing Condition, Including A Disability.” [Healthcare.gov, Accessed 7/18/12]
MILLIONS OF SMALL BUSINESSES ARE ELIGIBLE FOR A TAX CREDIT UNDER ACA
“Up To 4 Million Small Businesses Are Eligible For Tax Credits To Help Them Provide Insurance Benefits To Their Workers.” According to Healthcare.gov, “Up to 4 million small businesses are eligible for tax credits to help them provide insurance benefits to their workers. The first phase of this provision provides a credit worth up to 35% of the employer’s contribution to the employees’ health insurance. Small non-profit organizations may receive up to a 25% credit.” [Healthcare.gov, Accessed 9/17/12]
CLAIM: “…and the tax increase that hit small businesses risking jobs.”
FACT: Numerous analyses have debunked the claim that the health care law will kill jobs.
U.S. Chamber Of Commerce Claim That Affordable Care Act “Will Kill Jobs Across America” Was Rated “False.” PolitiFact Virginia wrote, “The ad said that ‘Obamacare … will kill jobs across America.’ The chamber of Commerce has failed to prove that it will, and the best projections we’ve seen, based on how the law is actually written, do not suggest that the law will ‘kill’ jobs. A close look at the studies cited by the Chamber of Commerce in support of the ad -- as well as other independent analyses of the health care law -- provide little, if any, evidence that the health care law will result in a significant net number of job losses. We rate the statement False.” [PolitiFact Virginia, 2/15/12]
FactCheck.Org: “Republican Claim That The New Health Care Law ‘Kills Jobs’ Was High On Our List Of The ‘Whoppers Of 2011.’” FactCheck.Org wrote, “The exaggerated Republican claim that the new health care law ‘kills jobs’ was high on our list of the ‘Whoppers of 2011.’ But the facts haven’t stopped Republicans and their allies from making the ‘job-killing’ claim a major theme of their campaign 2012 TV ads. . . . All of this is health-care hooey, aimed at exploiting public concern over continuing high unemployment, with little basis in fact.” [FactCheck.Org, 2/21/12]
CLAIM: “Now Kaine’s considering a new tax on those who can least afford it.”
FACT: This claim has been repeatedly declared false.
PolitiFact Gave Allen A “False” Rating For Claim That Kaine “Wants To Raise Taxes On Everyone.” PolitiFact Virginia wrote, “Republican George Allen’s senate campaign was not mincing words after Thursday’s debate with Democrat Tim Kaine. ‘Today, Tim Kaine announced he wants to raise taxes on everyone,’ Allen’s camp said in a statement released an hour after the candidates left the podium. . . . Our ruling - Allen claimed that Kaine ‘announced he wants to raise taxes on everyone.’ . . . Even if you go beyond the debate statement the Allen camp points to and look at Kaine’s other major tax positions -- ending the Bush era cuts for those earning more than $500,000 and eliminating some tax deductions in exchange for lowering rates -- that does not equate to a plan that would raise taxes on everyone. We rate Allen’s statement False. [PolitiFact, 9/24/12]
Washington Post: Kaine Has Neither Proposed Nor Endorsed Increasing Taxes On Everyone. In an editorial, The Washington Post wrote, “Mr. Allen and the anonymous, deep-pocketed allies who have paid for the barrage of TV ads against Mr. Kaine have traded in distortions. . . . They say Mr. Kaine wants to raise federal taxes on everyone; he has never proposed or endorsed such a policy.” [Editorial, Washington Post, 10/15/12]
FACT: Kaine cut taxes for tens of thousands of lower-income Virginians.
Kaine Signed Laws That “Would Remove About 140,000 Low-Income Virginians From The Tax-Rolls.” The Roanoke Times reported, “Gov. Tim Kaine has signed legislation that would remove about 140,000 low-income Virginians from the tax rolls… Kaine signed bills…that will gradually increase the state income tax filing threshold from $7,000 to $11,950 for individuals and from $12,000 to $23,900 for married couples. The bills also increase the personal exemption from $900 to $930 for all taxpayers.” [Roanoke Times, 3/22/07]
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