The Deeds campaign points out that, due to Virginia Republicans' "short-sighted rejection of unemployment insurance stimulus funds in April, businesses in Virginia now face a federal tax increase an entire year earlier than they might have." Nice job, Bob McDonnell et al. Not only have you guys prevented out-of-work Virginians from receiving badly-needed, extended unemployment insurance, you've also managed to harm Virginia's economy AND violate your own (idiotic) no-tax/flat-earth ideology. Is this the type of "leadership" we can expect from you if you're elected this November? If so, we're all in deep, deep trouble. (of course, what else would we expect who thinks that George W. Bush did a great job on the economy?)
Due to an increased demand by citizens and decreased contributions from employers, Governor Kaine today announced that he is requesting a $252 million federal loan to meet the obligations of Virginia’s Unemployment Compensation Program.
If the $125 million of federal unemployment insurance stimulus funds had been accepted in April, the Governor’s Office notes that the “state’s compensation fund might have been able to delay requesting loans until after January 1, 2010, which would have delayed the additional federal tax until 2012.” Because Virginia is expected to maintain an outstanding loan in 2010 and 2011, Virginia employers will be assessed an additional federal tax of $21 per employee in 2011.
“Earlier this year, I stood with Governor Kaine to accept $125 million in much needed federal stimulus money to extend unemployment benefits for Virginia’s laid-off workers,” said Sen. Deeds. “Bob McDonnell led the unconscionable charge to reject these funds, which Republicans in the House of Delegates voted to refuse earlier this year.
“Because of my opponent’s leadership in the short-sighted rejection of unemployment insurance stimulus funds in April, businesses in Virginia now face a federal tax increase an entire year earlier than they might have. As Governor, I’ll continue to fight for the unemployed and provide tax cuts for any employer that creates one job in Virginia.”
h/t: Star City Harbinger
