Virginia Governor's Race 2017: Tax Cuts Or Hikes? (ICYMI)

RICHMOND, VA — A couple of years ago, former Virginia Gov. Jim Gilmore (R) and soon-to-retire Jim Moran (D), a U.S. congressman representing Virginia's 8th district, joined a couple of others for a round-table political discussion at a Northern Virginia television station. Before the taping began, amid idle chit-chat, Moran joked with Gilmore by more or less saying, "Your philosophy is fairly simple, Jim: Cut taxes and cut spending on social programs."

Gilmore, who became governor in 1998 partly because of his "no car tax" mantra simply grinned. All of which brings us to the June 13 Virginia gubernatorial primary. The Republican candidates, frontrunner Ed Gillespie, Corey Stewart and Frank Wagner basically share Gilmore's philosophy, while the two Democratic candidates, Lt. Gov. Ralph Northam and former Congressman Tom Perriello, basically take the opposite track, although Perriello appears to be a bit more fiscally conservative than Northam.

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It's ever the standoff in both the nation and the traditionally fiscally conservative Virginia: tax cuts versus spending needs. Here's a look at how the top five candidates stand on taxes, beginning with the Republicans, in alphabetical order:

Ed Gillespie

The former head of the Republican National Committee wants to slash income taxes for Virginians. He wants to phase in a 10 percent income tax cut across the board in the next three years. Here's what he says his plan will do, as posted on his website:

• Provides the first income tax rate cut since rates were established in 1972
• Cuts individual income tax rates by 10 percent across-the-board, putting nearly $1,300 per year back into the pockets of a family of four
• Sparks natural, organic economic growth to diversify our economy and create more than 50,000 new full-time private-sector jobs in five years
• Puts Virginia on a path toward meaningful local business tax reform
• Phased-in over three years and fully funded within existing revenue growth to ensure core government services are protected, preserving $2 billion in projected revenue growth for spending over five years

Corey Stewart

The outspoken chairman of the Prince William County Board of Supervisors wants to flat out eliminate state income taxes. He said in a statement a couple of months ago that his plan "means nearly $1,300 more in the pocket of a family of four, would diversify our economy by helping start-ups and scale-ups, and create more than 50,000 new full-time or private-sector jobs."

Here's how his website presents his plan:

"Lowering taxes is the key to prosperity. Virginians’ deserve to have the lowest tax bill of any state in the country. As Governor, Corey will commit Richmond to the fiscal responsibility that Virginia’s taxpayers deserve. He’ll cut wasteful spending and bring our state to a zero-based budgeting system.

"He’s done it before. Corey produced the largest tax cut in the Prince William County’s history and has kept residents’ tax bills 30% lower than surrounding counties, averaging $161 lower adjusted tax bills than they were 10 years ago."

Frank Wagner

The longtime legislator in the Virginia General Assembly takes a pragmatic approach that differs from his opponents. Namely, he wants to see how Congress deals with health care reform and tax reform before making any promises.

He specifically takes issue with Gillespie's plan, as he pointed out in a release after his opponent's plan was released.

"It is entirely premature and intellectually dishonest to promise tax cuts to Virginia voters until Congress has dealt with health care reform and tax reform – both issues that the President and Congress have promised to address this year. There are so many state-impact variables in play as Congress addresses these massive issues. For Ed Gillespie to jump the gun and pretend to think he knows how these issues will be resolved is absurd."

Wagner's website doesn't specifically address his philosophy on taxes.

As for the Democratic candidates, here's a look at their stands on taxes — again, in alphabetical order:

Ralph Northam

One of the more notable proposals floated by the lieutenant governor is for scaling back the sales tax on groceries, part of what he sees as a broader look at tax reform in the state. He pledges on his website to bring together a tax reform commission "that makes Virginia’s tax code simpler, fairer, and more progressive. He believes tax reform should expand purchasing power for working families and allow Virginia to make smart investments in quality education and effective worker training."

While in the Virginia Senate, he voted to cut spending by $4.6 million to keep the budget balanced when the recession was upon us. He supports a complete audit of state operations to ferret out wasteful spending.

And as for the scaling back of the sales tax on groceries, here's what a spokesman had to say:

"In order to continue making progress, Ralph wants to phase out the regressive impact of the state sales tax on groceries on low-income Virginians. This regressive, unfair tax hits working families the hardest, and they can afford it the least. Now is the time for real comprehensive tax reform that helps Virginia families who need it the most."

Tom Perriello

The former congressman makes no bones about it. He'll push for a tax increase in various forms he believes will benefit the state's working class. He also wants to raise the tax rate for those making more than $500,000 per year.

His website has among of the more expansive breakdowns when it comes to taxes among all the other candidates, regardless of party. Perriello's take is that the mindset that the rich-get-richer-while-the-poor-get-poorer has to end.

He makes this clear on his proposals:

"Not only does my tax plan eliminate loopholes and fight back against economic consolidation at the top, but it also helps pay for growth-oriented programs that benefit every Virginian."

And this: "I propose gradually raising income tax rates 1 percentage point on those making more than $500,000 and 1.5 percentage points on those making more than $1,000,000. I will pair this change in rates with a change to make Virginia’s Earned Income Tax Credit (EITC) refundable."

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