Virginia Is for Tax Cutters — Stephen Moore, WSJ Political Diary

Jan 27, 2010:
Virginia may become the first state perhaps ever to abolish its state corporate income tax. We hear that this is one of the economic revival strategies that new Governor Bob McDonnell is exploring as he contemplates how to generate more jobs for a state that has seen a huge spike in job losses since the recession began.

Legislation was introduced this month in the Virginia House by Republicans Rep. Harry Purkey, chairman of the Ways and Means Committee, and Senator Ryan McDougle to get rid of the tax effective in January 2012. Mr. Purkey told the Richmond Times-Dispatch that the plan would give Virginia “economic competitiveness that is just really unparalleled.” He says the revenue from new jobs might even pay immediately for the $600 million tax cut.

Eric Finkbeiner, director of policy and transition for Mr. McDonnell, calls the plan “an innovative idea and something that we are looking at.”

Several of Mr. McDonnell’s top advisers have also found that, dollar-for-dollar, repealing the state income tax would have the biggest jobs impact. One Virginia business leader touting the corporate tax repeal plan is Richmond-based investor Bob Marcellus. Mr. Marcellus, who runs the Richmond Group Fund, has told the McDonnell economics team that “our combined federal and state corporate income tax rate of 41% (35% federal plus 6% state) is now the highest in the world — surpassing Japan and communist China — and is double the average rate in developed countries. While other countries have been slashing this tax, America has been asleep at the switch.” A study by Kevin Hassett of the American Enterprise Institute shows that these high corporate rates deter investment and ultimately reduce the take-home pay of workers.

Mr. Marcellus has been the pied piper of this idea, even talking to union leaders in the state. “We’re making progress with the Teamsters and other unions, who realize that this tax destroys jobs in Virginia,” he tells me. The Congressional Budget Office reported in 2006 that more than 70% of the burden of corporate income taxes falls on labor.

Gov. McDonnell also faces one of the biggest deficits ($4.2 billion) of any state in the nation in 2010 and 2011. So the potential immediate revenue loss is a big issue. Another even bigger obstacle, say McDonnell advisers, is that a corporate income tax might be seen as giving “a tax break to big banks and corporations a time when big business and Wall Street are not well respected.” But keep an eye on Virginia, because if this plan is launched as a jobs program in the Old Dominion state, expect to see it in other states too.

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Steve Moore of the WSJ on the $9 trillion 10-yr budget deficit, the shrinking GDP and jobs losses. Also, Earthquake at L.A.Unified. Sat Aug 29,2009

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[Edit posted 8/30/2009: Richard Rider, honored this past week as “Tax Fighter of the Year,” by Howard Jarvis Taxpayers Association, dropped in and chatted with us for a while, until he had to run off to do a TV interview with a reporter.]

This Saturday on the program Steve Moore of the WSJ, on the Obama Administration finally raising their own projected 10 year budget deficit to 9 trillion dollars, the GDP shrinks again, another 1 percent, for the forth quarter in a row, and where are the jobs?

We’ll talk with Steve about CA’s latest ‘really creative’ solution (Not) : raise taxes on middle income earners and small business owners–the ones who haven’t left the state yet.
Last October, on the Bill Maher’s Show, Steve said: “Our nation was founded on the principle of a tax revolt. . . . The American nation was founded because Americans hate paying taxes”. He’s the author of many books, including The End of Prosperity, co authored with Arthur Laffer and Peter Tanous. And he is very excited about the Tea Party revolts he has witnessed across the nation.

Larry Sand, recently retired L.A. Unified School District teacher, and the founder and president of the California Teacher’s Empowerment Network, joins me to talk about this week’s earth shaking news that the nation’s 2nd largest school district, Los Angeles Unified, voted yes on Tuesday, to allow private charter school companies to take over 200 failing schools and to operate 50 new schools.

The union is threatening to sue and vows to fight the decision. The proposal known as the “School Choice” measure, will allow charter operators and other institutions to bid for control of 50 new schools – including 20 campuses in the 2010-2011 school year – plus 200 “failing” campuses. The change will affect more than 200,000 students representing more than one-third of the student population in the LAUSD.

The lines are open. I hope you will put us on your calandar and join us for hot talk radio, Saturday at 10AM PT on CRN, Channel 1

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Saturday, March 14-2009: Steve Moore, WSJ, on the Stimulus Bill, Budget and your Prosperity. Plus Mex-US Border Wars– Drugs, Guns, Militarize?

Steve Moore of the WSJ, on the Stimulus Bill, the Budget and your Prosperity. Plus Legal Eagles, Francis Barraza and Kristen Lucero on Mexico-US Border Wars– Drug Policy, Gun Policy, Militarize? What do we do? And of course, YOU, my listeners!

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This week, on the fastest hour in radio, we are very excited to welcome the passionate, brilliant and modest economist and writer, Steve Moore of the WSJ, and co-author of The End of Prosperity: How Higher Taxes Will Doom theEconomy–If We Let It Happen.

We’ll talk with Steve on the latest with Obama’s Stimulus bill, the budget, proposals, and the possibilities for altering the course we are on.
Also, the very hot, very sharp Latina Legal eagles, Francis Barraza and Kristen Lucero, are back. If you missed their debut, check it out in the archives.

They’ll be with us the whole hour. The violence at the border is still escalating and continues to spill over into U.S. territory. The morgues are overflowing with bodies.

We’ll discuss President Obama’s statement in response to a call for troops- He obfuscates, but does reveal an intention to seize U.S. arms as a means of dealing with the problem.

Will that only worsen the danger? What can we do on our side of the border? Should we militarize the border? Should we change drug policy?