Weekly Column: Federal Tax Reform to Force Action at 2019 General Assembly Session

The following is my column that will appear in the Mt. Vernon Gazette, Springfield Connection, The Prince William Times, The Fort Hunt Herald, and Potomac Local in the week of November 26, 2018.

Federal Tax Reform to Force Action at 2019 General Assembly Session

At a recent Senate Finance Committee retreat, state legislators had a preview of economic and revenue projections and other significant issues expected to be debated in the 2019 General Assembly session.

A vice-president of Moody’s Analytics said that Virginia’s economy continues to perform well due to increased federal spending coupled with federal tax cuts.  However, he likened the performance to a sugar high and said that indicators are starting to point toward a recession in the next two years because of increased interest rates and increased import/export tariffs.  He cautioned that rising lending could exacerbate a recession.  He also noted that Virginia’s budget was well positioned for a recession because we have bolstered our Rainy Day Fund.

Next, we examined the state budget.  Nearly 70 percent of Virginia’s general fund revenue comes from income taxes.   Traditionally, Virginia has been a “conforming” state, meaning that the Virginia’s definition of adjusted gross income is identical to the federal definition and taxpayers and accountants do not have to use two different sets of rules to figure out taxes.  However, the tax bill passed by Congress in early 2018 significantly rewrote what constitutes income and limited deductions.  Most significantly, Congress and President Trump limited the deductibility of real estate taxes and state and local income taxes to a total of $10,000 (aka “SALT”).

Trump Budget Impacts on 36th District

Earlier this week, President Trump announced his budget. 

Aside from the massive layoffs in federal workforce and actual workers actually to lose their jobs with the federal government who live in the 36th District, there are other programs which provide grants or funding to other local programs in the 36th District. 

These are just some of the programs eliminated which have touched the 36th District that I have been able to determine so far:

• Eliminates the New Starts Program - Entire U.S. 1 Multimodal Transit Study and EMBARK plan is designed around obtaining $1.5 billion in funding from this program to construct bus rapid transit and Yellow Line Extension on U.S. 1.
• National Wildlife Refuge Fund - 36th District has three National Wildlife Refuges
• National Infrastructure Investments (TIGER) - TIGER grants funding completion of the Fairfax County Parkway in southern Fairfax County and construction of the I-95 HOT Lanes
• EPA Chesapeake Bay Cleanup Fund - Self Evident
• NASA Office of Education - has provided scholarship and summer learning opportunities for 36th District students
• Corporation for Public Broadcasting - PBS/NPR/WETA broadcast into 36th District
• Legal Services Corporation - Funds civil legal services for low income populations throughout the U.S. 1 Corridor
• National Endowment for the Arts - funds Virginia Commission for the Arts and has funded grants in the 36th District
• National Endowment for the Humanities - has funded grants in the 36th District - including for example effort to result in comprehensive edition of George Washington's papers
• NeighborWorks America - Invested $191 Million in Virginia including first time homebuyers grants, foreclosure prevention counseling, and affordable housing assistance
• Community Services Block Grant - Funds human services in Fairfax, Prince William and Fairfax Counties

There are dozens of other impacts as well that I have not assessed, but these cuts would cost the 36th District millions of dollars of aid, services, and jobs.  If you know of any others, post them up in the comments.

Thoughts On The Democratic National Convention

Last week, I attended the Democratic National Convention in Charlotte, North Carolina. 

Patch asked me to do a series of daily diaries.  I was able to do something for the first three days.  I had to drive home after Day #4.

Day #1 - Delegate's Diary: Democratic Convention 2012

Day #2 - Delegate's Diary: Democratic National Convention Day #2

Day #3 - Delegate's Diary: Democratic National Convention Day #3

I also wrote this column for the local papers recapping the entire convention which ran in Patch, The Mt. Vernon Voice and the Mt. Vernon Gazette.

National Democratic Convention: An Inspiring Experience  

I would like to share with the community some of my reflections on the recent Democratic Convention in Charlotte, North Carolinaat which delegates nominated President Barack Obama for re-election.