“Leaders of Some of the State’s Largest Jurisdictions Saw Mr. Cuccinelli’s Blueprint as a Recipe for Higher Property Taxes”
In May 2013, the Washington Post editorial board stated, “Unsurprisingly, leaders of some of the state’s largest jurisdictions saw Mr. Cuccinelli’s blueprint as a recipe for higher property taxes, which are imposed at the local level. How else would localities compensate for the loss in state revenue that directly supports public schools?” [Washington Post Editorial, 5/9/13]
This analysis makes a few reasonable assumptions:
- The Attorney General is accurate in his valuation of his tax plan’s cost at $1.4 billion per year in lost General Fund Revenues. Some have questioned whether the cost of his plan could actually be substantially more.
- That the Attorney General fails to find significant offsetting loopholes to close. So far, he has failed to identify any single tax credit or loophole he would close despite months of pressure. And Cuccinelli has ruled out eliminating a number of substantial tax credits already.
- That the cuts are applied evenly across the General Fund discretionary spending.
- That localities would use property taxes to offset corresponding reductions in local aid from the Commonwealth. Property taxes are the primary revenue generation for localities in Virginia when they have a shortfall.
You can download the data for this calculator here.