Richmond, VA - During a stop in Winchester this week, George Allen continued his call for an all cuts approach to the budget but the Winchester Star joined a host of other media outlets in noting how an all cuts approach would mean a “sharp reduction in federal funding for state programs,” or a host of new local tax increases.
The Winchester Star also highlighted how Allen’s ‘all cuts, no revenues, no defense cuts’ budget math doesn’t add up, following a similar formula that informs Representative Paul Ryan’s budget.
“Allen called for a balanced budget during a Tuesday campaign stop in Winchester. He also said defense spending should not be cut. But he has declined to consider any tax increases. In the candidates’ July 21 debate, Allen said he would not support a tax increase, even if it was accompanied by spending cuts of 10 times the amount of new tax revenue. Much like Allen’s plan, the budget crafted by Rep. Paul Ryan, R-Wis., and passed by the House is one that avoids defense cuts and attempts to erase the deficit without raising taxes.”
Plans like the Ryan/Allen plan, the Star reports, would either force Virginia to “raise taxes or Richmond could pass costs off to localities” if they hoped to maintain services.
The full story is below:
CUTS + REVENUES BEST BUDGET PLAN?
August 9, 2012
By CONOR GALLAGHER
The Winchester Star
WINCHESTER — While the two candidates for a U.S. Senate seat from Virginia debate what is the best way to reduce the country’s debt, a new report released Wednesday details the possible effects on Virginia of a cut-only approach.
Republican George Allen and Democrat Tim Kaine, who are vying for outgoing Democratic Senator Jim Webb’s seat in the Nov. 6 election, disagree on the balance of budget cuts and taxes necessary to rein in country’s deficit.
A report released Wednesday by the Washington D.C.-based Center on Budget and Policy Priorities predicts that the effect on Virginia of trying to balance the federal budget with cuts alone would mean a sharp reduction in federal funding for state programs.
Kaine has argued for a plan that incorporates both the additional money from allowing for the expiration of tax cuts for individuals making more than $500,000 annually with Republican-favored cuts, according to a spokesman from his campaign.
Allen called for a balanced budget during a Tuesday campaign stop in Winchester. He also said defense spending should not be cut. But he has declined to consider any tax increases. In the candidates’ July 21 debate, Allen said he would not support a tax increase, even if it was accompanied by spending cuts of 10 times the amount of new tax revenue.
Much like Allen’s plan, the budget crafted by Rep. Paul Ryan, R-Wis., and passed by the House is one that avoids defense cuts and attempts to erase the deficit without raising taxes.
The Center on Budget and Policy Priorities measures what the Ryan budget would mean for Virginia.
If federal assistance for state non-discretionary spending is cut at the same 22 percent rate as at the federal level, Virginia would see a $544 million reduction in discretionary grants in 2014, which would likely mean less funds to educate children, protect public health and provide law enforcement.
Department of Transportation grants are not included in the estimate. Neither is entitlement spending for programs such as Medicaid, food stamps and assistance for disabled veterans.
In order to maintain services, Virginia would either have to raise taxes or Richmond could pass costs off to localities, according to the report.
At the local level, cities and counties would then have to decide whether to slash services or raise real estate taxes, as Winchester and Frederick and Clarke counties did this year in efforts to stave off cuts to basic services.
While the Ryan budget is dead in the Senate and it’s unclear what, if any, agreement the two parties can agree on, Allen argued Tuesday that he can enact a solution.
“Leadership is about setting priorities and getting others to agree on what those priorities should be,” he said Tuesday in Winchester.
Problem is, most Democrats have different priorities.
— Contact Conor Gallagher at cgallagher@winchesterstar.com
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