Revenue that Virginia officials were anticipating from online sales tax legislation in Congress is now in doubt.
Recently the U-S Senate overwhelmingly approved a measure to make it easier for states to collect sales taxes from online purchases. Since then lobbyists for big online retailers and small business owners alike have stormed House office buildings trying to sway your local representatives.
State revenues improved a little last month following a dismal drop of 6.1% in March. The news reassured members of the House Appropriations Committee, who worry that federal sequestration cuts could have a negative impact on both Virginia’s economy and the state's coffers.
President Obama's new budget has of course sparked a battle on Capitol Hill.
We know Republicans aren’t happy with the president’s newly unveiled budget, but neither are some Virginia Democrats.
In his budget the President is embracing a new way to tie Social Security payments to the rate of inflation. It’s called the “Chained CPI” but let’s get past the Washington jargon. What it amounts to is less money in those Social Security checks for future generations of seniors.
The government is now funded through September, but another deadline is hanging over Congress that imperils the economy of Virginia.
The last time Congress wrangled over the debt ceiling the federal government lost its triple A credit rating. Credit rating agencies say Virginia could also lose its pristine credit rating if the federal government gets locked in partisan warfare once again.
That could make borrowing more expensive for cash strapped locales, according to Virginia Democrat Gerry Connolly.