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Virginia Republicans Say No to the Troops

Friday, June 19, 2009

There is rarely an issue that so succinctly focuses this much light on Republican hypocrisy and pettiness. As you read this, repeat the familiar mantra: "Support the Troops." Delegate Bouchard (D-Virginia Beach) proposed eliminating income tax on distributions from the Virginia Military Family Relief Fund. Republicans blocked his bill.
"The majority party would rather squeeze taxes out of military families experiencing a financial emergency than to treat them with compassion and help them overcome their difficulties." – Delegate Bouchard
The purpose of the Virginia Military Family Relief Fund (VMFRF) is to provide a source of assistance for military members and their families having difficulty meeting basic needs due to military deployments. Currently, any relief received from the fund is taxed as income. Major General Newman, the Commander of the Virginia National Guard, asked Delegate Bouchard to submit a bill to make those payments tax exempt. Bouchard's bill would have provided a subtraction from taxable income for any benefit paid. The bill died in Delegate Bob Purkey's (R-Virginia Beach) Finance Committee. Purkey enjoys gloating about his ability to sideline legislation like this. Nothing like demonstrating a principled stand on a bill that provides help to Virginians who find themselves in a bind because they have been called to active military duty and deployed. This bill, according to its opponents, would take too much tax revenue from the state. Republicans: Penny wise, pound foolish.
"So think about that for a second. You have a financial emergency, you get the financial assistance, and then you have to pay taxes on it. Well, that's adding insult to injury." – Delegate Bouchard



Through September 2008, some $125,371 in payments had been distributed to 88 taxpayers for an average distribution of $1425. If these taxpayers were taxed at the maximum rate of 5.75%, about $7,200 would be lost to state revenues annually over the next three years. The fund is projected to be broke by the end of 2012. The total loss in revenues for three tax years is $21,600. Delegate Bouchard wrote a letter to the Speaker of the House of Delegates offering to ameliorate that burden by replacing the lost revenues from his pay as a member of the General Assembly. Speaker Howell still refused support and the bill never made it to the floor.
"When you hear the other party talking about how strongly they support the military, just remember that." – Delegate Bouchard
There were 28 House Patrons and 11 Senate Patrons for Bouchard's HB 2414. In the House, 20 Democrats and 8 Republicans signed on; In the Senate, a more even 6 Democrats (including Democratic Gubernatorial candidate Senator Creigh Deeds) and 5 Republicans were patrons. However, an interesting division occurred among the Hampton Roads delegation. Democrat Bobby Mathieson was a patron. Missing from the patrons list in the Senate was the brother of Bouchard's general election opponent, Senator Ken Stolle (R), while the other Republican Virginia Beach Senator, Frank Wagner supported the bill. Of course, Purkey can be counted among the opposition while his fellow Hampton Roads Republicans, Sal Iaquinto and Bob Tata found cover from criticism by signing on as patrons.

The VMFRF is a special nonreverting fund that provides assistance to members of the Virginia National Guard and Virginia residents who are members of the reserves of the armed forces of the United States and their families. All moneys appropriated by the General Assembly or received as private gifts, grants, or donations contributed to the Fund and revenues received by the Commonwealth for the Fund through voluntary contributions are paid into the state treasury and credited to the Fund. Moneys in the Fund are used for the purposes of assisting members who have been called to extended active duty for periods in excess of 90 days, and their families, with living expenses such as food, housing, utilities, and medical services. A voluntary contribution to benefit the VMFRF was added to the 2008 individual income tax return (this is an after tax contribution, so contributions taxed as distributions would be twice taxed).