by Chris Braunlich

From the ‘50s to the mid-‘70s, the Republican Party was known as “the stupid party” – locked in the past, making foolish decisions, promoting unwise and counterproductive policies.

Today, in Virginia, “the stupid party” has returned. But it is no longer Republican.

The current battle over Virginia’s budget and the prospects for tax reduction and reform affirms the Left’s governing philosophy: what the government has belongs to the government and what the taxpayer has is negotiable.

With a $5.1 billion surplus exceeding the last fiscal year’s projections, Governor Glenn Youngkin proposes to return $1 billion — less than 20 percent — to the taxpayers from whom it came, in the form of permanent rate reform. He would spend the remainder on education, behavioral health, law enforcement and other projects. Senate Democrats, on the other hand, want to spend all of it, offering, at best, a one-time rebate giving them “first dibs” on future excessive tax revenue.

It is a philosophy locked in the past. Nothing demonstrates it better – on taxes and other key issues — than the recent VCU Wilder Commonwealth University Poll.

My colleague, Steve Haner, has already documented the VCU poll’s biases. It asked, for example, if voters want Youngkin’s $1 billion tax cut or spending on school construction – without informing the respondent that Youngkin’s proposal includes spending $2.4 billion on such projects.

Nonetheless, the survey provides an important snapshot of the tide of public opinion, and on issue after issue, the Left swims against the tide.

Take the simple question “What is the most important issue facing Virginia?” By two-to-one over the next highest response, the number one issue is “Inflation or the rising cost of living.” A smart party would focus on reducing the components of rising costs it can control – starting with the tax hikes passed by Governor Ralph Northam raising nearly 28 percent more tax dollars than before those hikes were passed, a full ten percentage points higher than the inflation rate over the same period.

Support for tackling the cost-of-living issue cuts across every region, age group, education and income level. Importantly, support includes 47.3 percent of Independents – higher than even among Republicans.

The issue can be addressed with tax reforms adjusting the tax code to inflation, increasing the standard deduction to comport with changes made by the Feds four years ago, and adjusting the top tax rate that kicks in at $17,000. Some of those ideas are captured in Governor Glenn Youngkin’s tax plan but seem lost in the miasma of secret budget committee discussions.

Instead, House of Delegates Democratic Leader Don Scott says “No,” dismissing voter concerns by declaring a tax-cut “irresponsible.”

It is not just taxes.

Asked if they have personally “experienced impacts from climate change,” 59 percent of survey respondents said “No,” including more than 56 percent of Northern Virginians, where one would expect the climate change canon to be strongest.

Yet, that 59 percent is being instructed by the Left, in party-line votes, to sacrifice their less expensive vehicles through a legislatively imposed ban on the sale of new gasoline-powered cars and trucks. This forced consumer spending comes despite the known higher cost of electric vehicles, their higher repair costs, the fact that most drivers will change cars before an EV will pay off, and that some cars are cheaper to fuel with gas than electric.

Those party-line votes stopped efforts to prevent localities from requiring the replacement of natural gas heating and stoves with electric, as has taken place in New York and California. Those retrofits are calculated to cost consumers as much as $27,000.

These are government-imposed increases, piled onto the rising cost of living, where grocery prices are high, gas prices are high, and mortgage rates have hit the highest in 20 years, putting the American Dream of home ownership out of reach for many.

So determined is the Left to impose a California agenda on Virginians that they ignore traditional allies in Black Virginians. Pounded unconscionably by school shutdowns resulting in massive learning loss and drops in test scores, 28 percent of Black voters name education as their top issue. Not far behind were Hispanic voters, naming education their number two issue, at 33 percent. Yet, elected Democrats snub the pleas of parents seeking quality alternatives for their children, even voting against using COVID funds to help parents find tutoring for their children.

Thus, Virginia Democrats have become “the stupid party” … ardently devoted to its most extreme wing, willing to ignore a long-standing base of its own voters, stepping most on those seeking only to make a better life for themselves and their families.

Whether Republicans have become “the smart party” – willing and able to sell their solutions to the public beyond the give and take of darkened Capitol hallways – on that, the jury is still out.

Chris Braunlich is Senior Advisor and former President of the Thomas Jefferson Institute for Public Policy. He may be reached at chris@thomasjeffersoninst.org.

Republished with permission from the Thomas Jefferson Institute for Public Policy. 


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44 responses to “Virginia’s New “The Stupid Party””

  1. LarrytheG Avatar
    LarrytheG

    so… fiscal conservatism is looking at revenues and deciding if an excess of them is recurring or one time money.

    So When Youngkin is saying that in addition to the tax cut, he’s gonna put money on education, behavioral health, law enforcement and other projects. is it a recurring expenditure or a one-time thing?

    Beyond that, do we know how much more we should spend on these things from now on, a increase in the budget?

    Is it fiscally conservative to NOT consider these things before making decisions?

    Most folks , most taxpayers GOP and Dem, realize we continue to have unfunded needs that need to be addressed longer term, recurring spending, not one time.

    The last thing we need is do the tax cuts, the economy sours and revenues won’t cover existing expenditures and cuts to things like education, transportation and law enforcement are forced to make up the shortfalls.

    It’s happened before.

    1. Stephen Haner Avatar
      Stephen Haner

      The Richmond Times Dispatch has now obtained and shared the Senate Democrat position paper on how to deal with the unallocated cash. I may do something with it, but the process will make it moot quickly. The two sides are so close now the disagreement is kind of dissolving. The document does prove that the VCU poll question was a blatant lie, the either-or choice it posed total fiction.

      Both sides seem willing to increase the standard deduction, for example, which is a long-term tax cut, but disagree over how much. Even the more generous Republican change is barely a dent in the income tax growth, which will continue to grow with inflation. Larry has long demonstrated he believes government spends money more wisely than we do, that its “unmet needs” outrank any financial stress facing individuals, who need no tax relief. I see it the other way around.

      Democrats cannot and will not compromise because they cannot abide Youngkin having even the shadow of a victory. This is the most partisan they have ever been in my 40 years of observation.

      1. LarrytheG Avatar
        LarrytheG

        I’d go along with a legitimate poll with the public if we outline the issue in terms of one-time money versus recurring money – AND expenses. AND I’d be willing to do it with a ballot question and let Virginian’s decide. “unmet needs” as defined in the budget process and agreed to by the Governor – like he alluded to ” education, behavioral health, law enforcement and other projects. “. Is he advocating for one-time money for these things or recurring money in a budget?

        I’m not at all opposed to tax cuts. I like my rebates and I’d surely like to pay less property tax but at the same time, we do have legitimate services and infrastructure that need to be funded and what I don’t like is getting a tax cut then a year or two later, seeing a budget shortfall.. like we saw in 2010 and 2016. What is fiscally responsible with this? That’s a supposed conservative ethic… but after we did Federal tax cuts financed with debt… it went south.

        1. Stephen Haner Avatar
          Stephen Haner

          Went south? The Trump tax cuts are still in effect and Biden is seeking to claim credit for the economy they produced….Has he moved to reserve them? No, not a bit.

          1. LarrytheG Avatar
            LarrytheG

            He sure is but the tax cuts are being funded with debt…. I don’t see the GOP acting to end it … nope…

          2. Eric the half a troll Avatar
            Eric the half a troll

            So it was the Trump tax cuts that gave us inflation then…??

          3. LarrytheG Avatar
            LarrytheG

            That and the COVID money, yep. works every time! tax cuts paid for with debt goose the economy, including Virginia.

            don’t extend them in 2025 and “poof”, bad karma. gotta have those tax cuts!

            Nary a peep from the “fiscal conservatives” except to decry the “defit/debt” (like it has nothing to do with the tax cuts!)

            used to be REAL fiscal conservatives would point this out!

          4. f/k/a_tmtfairfax Avatar
            f/k/a_tmtfairfax

            The COVID money. See the news story from Channel 11 in Durham. https://abc11.com/durham-low-income-families-doco-thrive-income-guaranteed-program/13665333/

            Now one can debate the pros and cons of this guaranteed income program. But why is there still American Rescue Plan Act money available well after the COVID emergency is over? This is the federal government at its worst.

            The preamble to Public Law No. 117-2 reads, “This bill provides additional relief to address the continued impact of COVID-19 (i.e., coronavirus disease 2019) on the economy, public health, state and local governments, individuals, and businesses.” Borrow the money and splash it around for years.

            And if government needs more money, how about putting a limit on the lives of private foundations and tax any nonprofit that spends money on influencing public policy or opinion? Look at all the 301(c)(3)s that have 501(c)(4) affiliates?

          5. LarrytheG Avatar
            LarrytheG

            This is the money that was designed to be spent as other parts of the economy were damaged by Covid. It worked but as usual, such efforts are never well calibrated AND they do risk amping up inflation and the Fed ends up raising interests rates to tamp down.

            The worse part is that it’s all funded from deficit/debt.

            It’s 32 trillion dollars! It was 21 trillion in 2017. The “theory” has been that in bad times we
            use “stimulate” the economy by debt and in good times, we pay it back.

            We’re paying for Medicare and Defense spending by selling US Treasury bonds instead of with increased collected taxes.

            Right now, Medicare costs about $700 a month to provide for seniors. By law, most seniors pay about 25% of that and the govt , 75%. (higher earning folks pay a higher percentage).

            The US got downgraded because the credit agencies are doubting that we’ll pay our debt because we hold the budget hostage over “cuts” that won’t come close to actually cutting the deficit.. mainly for symbolic effect IMO.

          6. f/k/a_tmtfairfax Avatar
            f/k/a_tmtfairfax

            American Rescue Plan money not spent by December 31, 2022 should have been canceled and returned to the Treasury.

            As far as government income /benefits are concerned, they should all be taxable like Social Security income is. Increase the personal exemption but make it all taxable income.

            Free continues to sell well. Just ask the Romans, who had bread and circuses.

          7. LarrytheG Avatar
            LarrytheG

            Agree on the ARP… not sure what you mean by “govt income”. Unemployment benefits ARE taxed as income. Are you advocating that ALL income be taxed not matter if it is low or high? How about capital gains income? taxed like regular income? How about capital gains on inheritance? No stepped-up basis?

            How are we going to pay down the debt we have already incurred and reduce paying interest on it?

            up until 3-4 years ago, most Conservatives would show the Debt Clock with wildly spinning
            digits of ever increasing deficit and debt… Haven’t seen it lately..

            https://www.usdebtclock.org/

          8. DJRippert Avatar
            DJRippert

            How about capping the tax deductibility of all charitable donations? Egomaniacs like Bill and Melinda Gates along with Warren Buffet create de-facto government agencies by pouring money into whatever idea meets their whim. That’s fine if they first pay taxes on the money they use.

            $20,000 per year charitable donation limit for couples, $10,000 for individuals. After that, you pay the tax and then donate.

  2. UVAPast Avatar

    Many voters do not pay Virginia income tax and want to have spending that might assist them.

  3. David Wojick Avatar
    David Wojick

    Good stuff. Any candidates using this? The election is almost nigh.

    1. Stephen Haner Avatar
      Stephen Haner

      The mailer that appeared in my box today from my local embattled GOP incumbent dealt with promising to keep boys off girl’s sports teams. I guess that matters to some voters, but no, not as hot with me as the economic or energy issues. 🙂

      1. David Wojick Avatar
        David Wojick

        Now that’s stupid.

      2. LarrytheG Avatar
        LarrytheG

        They’re not funding reinsurance for the ACA that is going to cause premium increases.

        And (I donj’t know all the in’s and outs) but letting school teachers on the State Health Insurance would save money for local school districts, local tax payers and teachers.

        “Smart” Conservatism!

        Not THIS:

        https://uploads.disquscdn.com/images/04041d793ef692071f9cc5cd91d885f257cecaf6232ffc7f16df0ed12f9fcf13.jpg

  4. Eric the half a troll Avatar
    Eric the half a troll

    “…increasing the standard deduction to comport with changes made by the Republicans four years ago…”

    Fixed it for you… changes that are due to expire soon along with the State income windfall… hence the one-time offer by Dems which Youngkin refuses….

  5. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    This is a disappointing post. First of all, there will not be a $5.1 billion pot of surplus to spend by either party. As I have said frequently on these pages, and Steve agrees with me, by constitutional requirement, a chunck of that that money must be deposited in the rainy day fund; by law, some has to go to water projects; and a billion is needed to fund the provisions of the “skinny budget”. The available balance will be sizable, but it will not be $5.1 billion, as the governor is fond of saying. Second, the article seems to imply that last fiscal year’s revenues exceeded the estimates by $5.1 billion. That also is incorrect. Whatever balance is reported is the result of several budgetary processes.

    Next, he lists the following elements of “Governor Glenn Younking’s tax plan”: “tax reforms adjusting the tax code to inflation, increasing the standard deduction to comport with changes made by the Feds four years ago, and adjusting the top tax rate that kicks in at $17,000.” The only problem is that those changes are not what Youngkin has been pushing–those are what was being proposed by House Republicans. Youngkin has been pushing a cut in the corporate tax rate and a reduction in the top personal income tax rate. A decrease in the corporate tax rate is not going to help the ordinary taxpayer to be able to afford his groceries a little bit more. A cut in the top personal income tax rate may proviede a little bit of help for some taxpayers facing higher grocery prices, but it is going to benefit the taxpayers in the higher income brackets (who probably don’t worry about grocery prices) a lot more.

  6. James Wyatt Whitehead Avatar
    James Wyatt Whitehead

    Maybe Virginia could follow Oregon. The Oregon Kicker Clause that is. The Beaver State cannot retain more than a 2% surplus. The remainder of the surplus is rebated in proportion to what the taxpayer kicked in. Wally approves!

    1. LarrytheG Avatar
      LarrytheG

      I’d do that. Some localities are now doing that also.

      ” Henrico homeowners are getting property tax credit. Here’s how much.”

      It’s not chump change but it ain’t the lottery either:

      ” A single-family home with the average assessed value of $367,000 will generate a credit of $73.40. ”

      https://richmond.com/news/local/government-politics/henrico-homeowner-real-estate-tax-rebate/article_5c3fdca2-3add-11ee-a5bc-2b33a2127922.html#:~:text=Henrico%20County%20homeowners%20are%20due,post%2Dpandemic%20real%20estate%20values.

      And for the state – if they ended up with genuine rebates several years in a row, consider folding it into some kind of limited tax cut but don’t get too carried away.

      Most people hate taxes, Dems too but they also realize we need to have highways, schools, Medicaid, law enforcement and more.. and it costs money to provide it. It’s not “evil”, it’s reality.

      The state carried an AAA credit rating and has for years no matter what party is in the majority in Richmond. It saves taxpayers money on infrastructure, and what it really means is that we pay our bills – and we know the difference between one-time money and recurring money.

  7. walter smith Avatar
    walter smith

    Don’t get too optimistic about the Rs losing their title! They will not give it up without a fight. Every time a more rightist type gets nominated, the more Establishment types sniff their noses and stay home…for purity’s sake.
    I think the Ds are generally evil, but they do understand it is about winning.

  8. William O'Keefe Avatar
    William O’Keefe

    Poor Larry, he was born with a deep seated progressive ideology buried in his head. Here’s a little secret Larry, tax cuts do not cause deficits; spending does. In fact the history of tax cuts is that tax revenue tends to increase except when there are recessions or similar externalities.
    To do federal or state budgeting honestly, there first needs to be a complete re-engineering of of what government does, a line drawn where the next set of activities incur costs that exceed benefits and the a tax structure that captures private money in the least inefficient way.
    Neither Virginia nor the Federal Government will commit to do the hard work to achieve a good balance between revenue collection and government spending. So, we are stuck with a lot of political babble.

    1. LarrytheG Avatar
      LarrytheG

      Poor Bill, he actually believes tax cuts increase revenues. Nope. The data don’t lie. Look right now! It’s a trillion dollars in deficit net after revenues.

      It’s a conservative fairy tale that is then often followed by ” there first needs to be a complete re-engineering of of what government does, a line drawn where the next set of activities incur costs that exceed benefits and the a tax structure that captures private money in the least inefficient way.”

      Right So Conservatives would kill Social Security and Medicare, as well as the ACA and let the “free market” do health care. Of course they’d keep the govt rule that says employer-provided must provide insurance to any no matter age or health status – totally not free market insurance!

      So no, not “poor Larry”, “poor Bill” still stuck in a mythical belief that simply is not reality for a majority of folks.

      Ditto with gas taxes. Not govt bureaucrats, but govt money to hire private sector contractors to build roads.

      Oh, and if someone suggests non-govt toll roads that charge according to congestion levels, the pro-private sector folks run screaming to the govt to do it instead!

      The best countries in the world, the ones with the highest incomes, best health care , best highways, etc, etc, etc are like the US not like the 3rd world /developing world countries.

      Truth!

      Show me a country on the planet that does what Bill says should be done!

      NADA!

      1. William O'Keefe Avatar
        William O’Keefe

        Larry, there you go again. I’ll let you in on a little secret. The sequence is to think first and then speak because nothing spoils a good story like the arrival of facts. Take a look at this document–https://www.discoursemagazine.com/economics/2022/02/14/in-actual-dollars-tax-cuts-boost-revenue-time-after-time/
        Someday. I’m sure that you will get on the right side of actual facts.

        1. LarrytheG Avatar
          LarrytheG

          need to think first when you post a link that does not work! think first guy before you post!
          and please, use legitimate sources guy… not ones that are “out there”.

          1. William O'Keefe Avatar
            William O’Keefe

            And, what is wrong and incorrect about the source? It represents the majority of papers on the subject.

          2. LarrytheG Avatar
            LarrytheG

            when I click on it… it does not bring up anything… it looks like a bad link.

            but hey, if we have ALREADY spent the money and we are paying interest on treasury
            notes, you’d not want to pay that off? 12% of our budget is interest… right?

          3. William O'Keefe Avatar
            William O’Keefe

            See if this works–https://www.discoursemagazine.com/economics/2022/02/14/in-actual-dollars-tax-cuts-boost-revenue-time-after-time/

          4. William O'Keefe Avatar
            William O’Keefe

            I couldn’t get it to open either. The sources is Discourse magazine and the title is In Actual Dollars, Tax Cuts Boost Revenue Time After Timeby Jack Salmon, February 14, 2022.

          5. LarrytheG Avatar
            LarrytheG

            https://www.discoursemagazine.com/economics/2022/02/14/in-actual-dollars-tax-cuts-boost-revenue-time-after-time/

            ” So did the TCJA pay for itself?

            The TCJA did not pay for itself, nor is it likely to do so in the future. There are many debates to have about the TCJA, but whether it raised or reduced revenues in 2018 should not be one of them.”

            https://www.brookings.edu/articles/did-the-2017-tax-cut-the-tax-cuts-and-jobs-act-pay-for-itself/

          6. William O'Keefe Avatar
            William O’Keefe

            Give me a break! Using one year to evaluate the longer term effects created incentives is pure sophistry.

          7. LarrytheG Avatar
            LarrytheG

            this “tax cuts pay for themselves” thing is an old conservative saw…. If it were even remotely true, we could actually CUT deficits with tax cuts and that just ain’t true!

            We have what what 30+ trillion in debt. How do we pay it down without tax increases?

          8. William O'Keefe Avatar
            William O’Keefe

            You make me laugh by keep changing the subject. The point was simply that lowering tax rates does not lower the revenue generated; it increases it. The deficit is caused by spending.
            You provide comic relief to readers.

          9. LarrytheG Avatar
            LarrytheG

            Bill, comic relief is this: ” The point was simply that lowering tax rates does not lower the revenue generated; it increases it.”

            If this was actually true, Youngkin could claim his tax cuts would increase revenues, right?

            You folks actually believe this but even folks like Youngkin know the truth !!

            If Youngkin actually made that claim the term “voodoo economics” would have REAL legs!

          10. William O'Keefe Avatar
            William O’Keefe

            Larry, your short term memory must be on vacation. I provided a document that showed the effect of reducing tax rates. Here’s another-https://www.forbes.com/sites/mikepatton/2012/10/15/do-tax-cuts-increase-government-revenue/?sh=89d251c4bf26, so quit bugging me with your irrelevant nonsense.

          11. LarrytheG Avatar
            LarrytheG

            You did provide a document and I’m pointing out that if what is claimed in the document is
            true, that Youngkin could claim that his tax cuts would increase tax revenues. Why doesn’t he
            make that claim?

          12. William O'Keefe Avatar
            William O’Keefe

            I don’t speak for him; he doesn’t speak for me.

          13. LarrytheG Avatar
            LarrytheG

            but if what you and “Discourse” claim is true, then folks like Youngkin could propose tax
            cuts and claim it will actually bring in more revenues! I know of not a single elected person who makes this claim… only folks on the right in journals like “Discourse”. It’s a totally bogus theory that no reputable public official claims is true.

          14. William O'Keefe Avatar
            William O’Keefe

            You obviously are not familiar with the economic literature and the dynamics unleashed by changed incentives. If you want to have a serious discussion quit using insulting terms like bogus. Otherwise, save your energy and time.

          15. DJRippert Avatar
            DJRippert

            The problem is misunderstanding the relevant range of tax cuts.

            Take two extreme examples:

            100% taxation. Old school Cuba. Miserable economy. Little economic output, limited taxes collected. Cut the tax rate. Do the dollars collected go up? You bet.

            0% taxation. No effective government. Today’s Somalia. If you increase taxes enough to fund an effective government would that increase result in higher collections? Of course, since you were collecting 0%.

            The Laffler Curve was just that – a curve.

          16. LarrytheG Avatar
            LarrytheG

            Name the govts in the world that do the best “in between” job.

            and show me where tax cuts generate more revenue than if no tax cut and if true,
            why doesn’t Youngkin claim his tax cuts will INCREASE revenues! 😉

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