While Tax Day is never a happy time for Virginians, the National Republican Senatorial Committee is reminding voters in the Commonwealth today that under the Obama-Kaine tax plan, American families and small businesses are facing as much as $4.5 trillion in higher taxes over the next 10 years.  

In fact, just this week Chairman Kaine spoke with WINA in Charlottesville where he criticized the so-called “Buffett Tax” for not raising taxes enough and reiterated his support for allowing the current tax rates to rise dramatically at the end of this year, unless they are renewed.  

Listen Here — Chairman Kaine: ““I question the priority of doing this right now.” 

“Under the Obama-Kaine plan, taxes will rise by $500 billion over 10 years on the low end and as much as $4.5 trillion over 10 years on the high end, and all while Virginia businesses struggle to get back on their feet and create jobs,” NRSC Communications Director Brian Walsh said today.  “As Governor, Tim Kaine proposed the largest income tax hike in Virginia history, and as Senator he wants to enact one of the largest tax hikes in American history.  Virginia families and small businesses simply cannot afford to send Tim Kaine to Washington in November.” 

BACKGROUND …

The Obama-Kaine $4.5 Trillion Tax Hike

Under President Obama and Tim Kaine’s plan, one-quarter of all job creators will see their income taxes increase in 2013. 

Income Taxes Go Up $4.5 Trillion Next Year

Total scheduled individual income tax increases are $4.5 trillion over 10 years. Under the Obama tax hike plan, a typical family of four earning $50,000 will send an extra $2,000 to Washington next year.

Higher Taxes Hurt Jobs

New and higher taxes will not create jobs — except at the IRS. According to the Congressional Budget Office, “higher marginal tax rates do reduce economic activity.” The Obama-Kaine tax hike plan will hurt the ability of small businesses to innovate, invest, and create careers.

• One Out of Four Employees Work At Businesses Hit. Businesses employing 25 percent of the American workforce would be hit with higher taxes.

• Nearly All Small Businesses Affected. Government data shows that 94 percent of small businesses pay taxes through the individual tax code.

• Hundreds of Thousands of Small Businesses Caught. Approximately 750,000 small businesses would be hit by this tax hike.

• America’s Competiveness Hurt. Raising the dividend and capital gains rates will result in a 68.6 percent integrated dividend tax rate (the highest among industrialized countries) and a 56.7 percent integrated capital gains tax rate, second highest among these nations (behind Italy). Such a high rate will drive investment and jobs overseas.

Tim Kaine – A Long Love Affair With Higher Taxes

As Governor — Kaine’s 2010 – 2012 Proposed Budget Included A $2 Billion-A-Year Income Tax Increase 

The Tax Increase Under Kaine’s Budget Proposal Would Be A $2 Billion-A-Year Income Tax Increase. “Virginia’s hated local car tax would be replaced with a $2 billion-a-year income tax increase under the new budget Gov. Timothy M. Kaine presented Friday.” (Bob Lewis and Dena Potter, “Va. Gov: End Car Tax, Raise Income Tax 1 Percent,” The Associated Press, 12/18/09)

• “The Tax Proposal From The Democratic Governor Who Leaves Office Next Month Accompanied A Budget That Prescribes About $1.2 Billion In Spending Cuts In A Bid To Reconcile A $3.6 Billion State Revenue Shortfall For 2010 Through 2012.” (Bob Lewis and Dena Potter, “Va. Gov: End Car Tax, Raise Income Tax 1 Percent,” The Associated Press, 12/18/09)

Kaine’s Income Tax Increase Would Be The First Since 1972. “Besides a budget bill that deeply cuts funding for state-supported colleges, mental health services and public safety, Kaine is preparing a separate bill that would phase in a 1 percent income tax increase over two years. It would be the first income tax increase since 1972.” (Bob Lewis and Dena Potter, “Va. Gov: End Car Tax, Raise Income Tax 1 Percent,” The Associated Press, 12/18/09)

The Income Tax Change Would Have Resulted In An Income Tax Rate Hike “For Those Earning More Than $17,000, 60 Percent Of Taxpayers.” “The increase would mean a hike in the income tax rate from 5.75 percent to 6.75 percent for those earning more than $17,000, 60 percent of taxpayers.” (Anita Kumar and Rosalind S. Helderman, “Virginia Governor Proposes An Income Tax Increase,” The Washington Post, 12/19/09)

Kaine Supported Obama’s American Jobs Act, Which Would Be Paid For By Tax Hikes

Kaine Said Obama’s American Jobs Act Offered Strong Solutions That Would “Spur Hiring And Job Growth.” “In response to the President’s speech to Congress, Governor Tim Kaine released the following statement: ‘President Obama offered a series of strong, bipartisan solutions designed to spur hiring and job growth without adding to the deficit.” (Tim Kaine For U.S. Senate, “Kaine Statement On The American Jobs Act,” Press Release, 9/9/11)

Kaine Supported “A Combination Of Budget Cuts And New Revenues.” “As Governor of Virginia, I invested in education and work force development initiatives that helped improve opportunities for our citizens and attract new business to Virginia. . . . In order to free-up revenue for these critical investments, Congress should employ a balanced approach to fiscal responsibility and job creation that emphasizes a combination of budget cuts and new revenues by rolling back tax breaks for corporations who don’t need them and the wealthiest Americans.” (Tim Kaine For U.S. Senate, “Kaine Statement On The American Jobs Act,” Press Release, 9/9/11)

Kaine Stands To The Left Of Virginia Democratic Senator Jim Webb, Who Called Obama’s Plan To Increase Taxes “Terrible”

“‘I Do Not Believe We Should Be Increasing Ordinary Earned Income Taxes On Any Level,’ Webb Said Monday on Andrea Mitchell Reports. ‘I think there are places for us to be able to get money by changing things like the capital gains tax and the loopholes that have existed in our tax code.’” (Ben Pershing, “Webb Criticizes Obama’s Tax Hikes, And GOP Pounces,” The Washington Post’s Virginia Politics Blog, www.washingtonpost.com, Posted 9/14/11)

“Webb Was More Blunt Tuesday, Telling Politico That Obama’s Proposed Tax Increase Was ‘Terrible.’” (Ben Pershing, “Webb Criticizes Obama’s Tax Hikes, And GOP Pounces,” The Washington Post’s Virginia Politics Blog, www.washingtonpost.com, Posted 9/14/11)