Terry McAuliffe’s campaign for Virginia governor is pushing the notion that Attorney General Ken Cuccinelli II’s plan to cut state taxes would eventually lead to increases in local property taxes, a claim the Republican’s side says uses “faulty logic” and one that relies on a series of big assumptions about the effects of the proposal.
McAuliffe (D) launched Web ads this week with a “property tax calculator tool” that purports to show Virginians how much their property taxes would rise under Cuccinelli’s tax plan. Cuccinelli has called for lowering the individual income tax rate from 5.75 percent to 5 percent over four years, and the business income tax from 6 percent to 4 percent, at an estimated yearly cost of $1.4 billion.
Cuccinelli also has proposed appointing a commission that would be tasked with ranking every credit and loophole in the Virginia tax code based on effectiveness, and he would then ask the General Assembly to eliminate the least effective among them. He has repeatedly declined to name specific credits he would eliminate, saying he would leave that to the commission and the legislature.