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Democratic Leader Filler-Corn Wrongly Claims Gov. Northam’s Budget Isn’t Built on Higher Taxes

Less than one week into Virginia’s 2019 legislative session, tax policy issues are quickly becoming the top issue of debate, with Republicans and Democrats in the General Assembly charting starkly different courses.

Earlier today, Republicans announced a unified front behind tax relief legislation offered by Delegate Tim Hugo (R-Clifton), aimed at blocking a hidden $1.2 billion tax hike championed by Democratic Governor Ralph Northam, which the governor used as the basis for a $2.2 billion spending increase contained within his budget.

“Our first and foremost effort is to say no to a hidden tax increase that’s found in the governor’s budget,” said Hugo, speaking on the House floor, following the GOP’s earlier announcement. “Let’s give the money back to the people who are paying the taxes.”

Minutes later, Minority Leader Eileen Filler-Corn (D-Fairfax) took to the House floor, denying that the governor’s budget was built on higher taxes, during a speech touting Democratic priorities, including higher spending and gun control.

“We also heard some incorrect information from the delegate from Fairfax, stating that Governor Northam’s proposal was a tax increase,” said Filler-Corn.

“There is no tax increase in the governor’s budget plan,” she continued.

The Richmond Times-Dispatch editorial board disagreed with that assessment.

In an editorial entitled, “Gov. Northam’s tax plan wallops the middle class,” written last year after Northam released his plan, the Times-Dispatch said:

“Virginia Democrats, led by Gov. Ralph Northam, are preparing to do what Democrats were born to do: raise taxes and spend other people’s money. The opportunity arises thanks to the simplification reforms in last year’s federal tax-cut legislation. This makes the current opportunity to tax and spend especially appealing because state Democrats can use the changing and complex relationship between state and federal tax codes as a cover to ding middle-class Virginians.”

“The Democrats’ media allies are already doing their part by claiming that the state income tax increase the governor and fellow Democrats support will mainly affect ‘the wealthy.’ That’s accurate only if your definition of wealthy extends to, say, a married couple of twenty-something public schoolteachers who just bought their first house. Assuming a net income of about $80,000 for our two young educators, a back-of-the-envelope calculation of their state income tax liability suggests it would balloon by at least $700 under the Northam plan.”

In her speech, Filler-Corn touted several spending priorities paid for by the $1.2 billion in additional revenue referenced by the Times-Dispatch, but said it wasn’t a “tax increase” on the 600,000 Virginians who would pay higher taxes under the governor’s plan, choosing instead to blame President Trump for the refusal of Virginia Democrats to conform the state’s tax code.

In contrast to the unified Republican opposition, Filler-Corn’s Democratic caucus is already showing signs of internal division over the governor’s plan.

In an op-ed published in by the Times-Dispatch, Delegate Dawn Adams (D-Richmond) agreed with the Republican-led effort to allow taxpayers the opportunity to choose between taking the state’s standard deduction and itemizing, regardless of how they file their taxes.

“As a short-term solution, I have drafted legislation that first allows filers to choose whether they want to itemize irrespective of what they do at the federal level,” wrote Adams. “Knowing the backstory gives individuals power to decide how they want to spend their money.”

Adams stopped short, however, of backing the GOP’s proposal to increase Virginia’s standard deduction from $3000 to $4000 for individuals, and from $6000 to $8000 for married couples, a move which would primarily benefit lower and middle income taxpayers.

“‘Doubling Virginia’s standard deduction’ is a bad idea,” she said, in closing.

Another Democratic lawmaker, Delegate Lee Carter (D-Manassas), suggested the governor’s tax increases might be less than he would like, suggesting disagreement within the Democratic caucus.

“So you know I’m looking for ways to get that 5 percent raise entirely on state dollars so localities aren’t feeling that pinch,” said Carter, who self-identifies as “socialist”, during a January 8th interview on the Kojo Nnamdi show.

“But there are some folks, some of my colleagues, who are maybe more skeptical of the idea of the 5 percent raise entirely.”

In contrast to the mixed messages coming from House Democrats, their Republican counterparts are unified against the proposal.

“To be very clear, the governor’s proposal to increase taxes on hard-working Virginians is dead on arrival,” remarked GOP Majority Leader Todd Gilbert (R-Shenandoah), during proceedings on the House floor on Monday.

“We are not going to participate in that,” he said. “We are not going to discuss that. That is a non-starter for this caucus, and we are not going to go along with it, and I just wanted to lay down that marker.”

At the direction of Republican House Speaker Kirk Cox (R-Colonial Heights), Virginia’s House of Delegates will consider Hugo’s bill as a high-priority item early in the session, which is scheduled to last through mid-February.

Cox said addressing the tax issue early was vital to hearing budget amendments, which could not be done until the General Assembly’s money committees had a revenue baseline to work with.

William Barr, Trump’s Pick For Attorney General, Testifies In Senate Confirmation Hearing

The Senate confirmation hearing for William Barr, President Donald Trump’s new pick for attorney general, began Tuesday morning, seemingly less contentious than the hearings that dominated autumn 2018 with Supreme Court Justice Brett Kavanaugh. Barr served as the 77th Attorney General under the late former President George H. W. Bush from 1991 to 1993.

The Reagan-era policy staffer was known as a strong defender of presidential power and aggressive actions on terrorism and drug-trafficking. Regardless, during his 1991 confirmation hearing he received a good reception from both Republicans and Democrats.

One of the biggest issues surrounding the confirmation of Barr is how he will handle White House Special Counsel Robert Mueller’s investigation into Russian collusion into the 2016 presidential election. Many on the Senate Judiciary Committee prompted Barr to reveal if he would act to protect the president if the eventual release of the report would incriminate the commander in chief.

With talk of the upcoming departure of Deputy Attorney General Rod Rosenstein, who has been at odds with President Trump in the recent past, Barr explained that he has nothing to do with the decision. Although Barr would be allowed to choose his deputy for the Department of Justice (DOJ), he reiterated that he has asked Rosenstein to stay on for “a period” if he is confirmed.

Barr also answered questions on whether he would allow Trump to direct him in the Russia investigation, after ousted Attorney General Jeff Sessions recused himself in the weeks after the president’s inauguration – an issue that began the tumultuous relationship between the two.

“I will not be bullied into doing anything I think is wrong,” Barr said.

Recently, however, Senator Kamala Harris (D-CA), a widely-speculated 2020 Democratic presidential candidate, believes Barr should recuse himself from overseeing Mueller’s investigation.

On Tuesday, senators Richard Blumenthal (D-MA) and Dianne Feinstein (D-CA) charged that Barr that he must act as a fully independent attorney general, regardless of the wishes of the president, who has said that he does not want a DOJ head that will recuse himself. Furthermore, Feinstein prodded Barr to commit to not interfering in the Russia probe.

“The special counsel’s investigation is set by his charter and by the regulations, and I will ensure those are maintained,” Barr said, adding that he will not terminate the investigation “without good cause.” He also said the special counsel “is not involved” in a witch hunt.

Although Senate Judiciary Chairman Lindsey Graham (R-SC) said the process to confirm and the subsequent responsibilities of Trump’s pick for attorney general “will be challenging,” he expressed confidence in Barr during the questioning insofar as Mueller’s investigation is concerned. Barr said Mueller will be allowed to continue the investigation, making the results public, consistent with federal regulations.

“I believe it is in the best interest of everyone…Bob will be allowed to finish his work,” he said, who also has a friendly relationship with the special counsel.

As the confirmation hearings continue, Barr will also be grilled on presidential powers, immigration enforcement, abortion and the validity of Roe v. Wade (1973), the handling of enemy combatants and the constitutionality of torture, protections for journalists, and his past actions in previous administrations.

If Barr becomes the 85th attorney general, he will be the first to repeat the position since its inception in 1789. He will replace acting-Attorney General Matt Whitaker who was thrust into the position following his tenure as chief of staff to former Attorney General Sessions after a two-year, mostly bad-tempered relationship with President Trump.

GOP Legislation Would Double Virginia’s Medical Cannabis Dispensaries

Following last year’s round of applications for Virginia’s first cannabis oil dispensaries, a new bill to be deliberated in the 2019 General Assembly session could provide even more for the Hampton Roads area. House Bill 2245, introduced by Delegate Glenn Davis (R-Virginia Beach), provides that the Virginia Board of Pharmacy will be directed to award an additional five medicinal cannabis pharmaceutical processing licenses.

The board has already approved five licenses, with each serving a different regional portion of the state’s healthcare service.

The bill clarifies that products containing a concentration of tetrahydrocannabinol (THC-A) should be no greater than that allowed by federal law, which is 0.3 percent or less. The amount defined in the bill would dictate that the substance does not constitute marijuana.

It would also increase the number of pharmaceutical processor permits the Board of Pharmacy may issue or renew for each healthcare service area in any year from one to two. Moreover, each pharmaceutical processor that has been awarded a permit will be able to operate up to two off-site locations for the dispensing of cannabidiol oil and THC-A oil.

According to the legislation, the Board of Pharmacy would issue additional permits to operate as a pharmaceutical processor by September 1, 2019. Therefore, 10 processors could end up running up to 20 medical dispensaries across the state.

“Those that probably need it the most — the aged and the severely disabled — are probably the least likely to be able to travel the long distances to get to one of those five locations,” Delegate Davis said in a report from The Virginian-Pilot. “Initially, the production that could come from the five locations would be significantly under what the demand would be.”

Contention rose last year during the secretive application hearing process conducted by the Board of Pharmacy as many seeking licenses made claims that the selection process lacked proper transparency. However, some were informed that reasons for a license denial varied from a “lack of details” on security plans, employee training, industry experience, and local support for the installment of a dispensary.

Nevertheless, as more lawmakers in a traditionally conservative state begin to warm to the idea of using cannabis as medicine, it is opening up an additional economic path that could fare well for the Commonwealth. For example, in late 2018, Richmond, Virginia-based tobacco giant Altria Group dove headfirst into the burgeoning cannabis industry, sinking $1.8 billion into Cronos Group, a Canadian medical and recreational marijuana provider.

Shutdown Impasse Likely To Extend Through SOTU Address At Month’s End

As the 116th Congress returns to Capitol Hill for its first full week of legislative business since Democrats reclaimed the majority in the House of Representatives, both parties in power will continue to struggle to reach a funding deal to reopen 25 percent of the federal government. Even though money ran out on December 21, 2018 – marking the longest ever federal closure – no ground has been made by either President Donald Trump and Republicans or Democrats.

The next landmark adding to the shutdown saga is likely to be the State of the Union address set to air January 29. For the next two weeks, there is little sign of a deal yet to be made; however, the political consequences of the impasse are continuing to build.

Over the weekend, 2,000 federal workers protested outside the White House that has so commonly been associated with contentious talks with congressional leaders over the shutdown. At least 800,000 furloughed federal workers have come to terms with missing paychecks, highlighting the fact that nearly 80 percent of American workers live paycheck to paycheck.

Senator Lindsey Graham (R-SC) has encouraged Trump to reopen the government for several weeks to continue negotiating with Democrats over the U.S.-Mexico border wall. The short-term fix would at least allow federal employees to be paid, dampening the negative consequences of the over three-week-long standoff in Washington.

Regardless, the president has stood firm on his $5 billion request for funding his campaign promise of a southern border wall, adding during last week’s national address from the Oval Office that there is a “growing humanitarian and security crisis” at the border.

President Trump, targeting Speaker of the House Nancy Pelosi (CA-14) and Senate Minority Leader Schumer (D-NY) for inaction, said on Twitter earlier today, “I’ve been waiting all weekend. Democrats must get to work now. Border must be secured!”

Although the commander in chief asserted weeks ago that he would “take the mantle” on the government shutdown, he is now placing the blame on Democrats in Congress. Senate Majority Leader Mitch McConnell (R-KY), also ready to battle a Democratic lower chamber, said the GOP majority in the Senate will not deliberate anything the president will not sign.

Trump is currently warming to the idea of declaring a national emergency to build the southern border wall, allowing the White House to bypass congressional appropriations and tap into various unspent federal money, which will come from military construction and disaster relief. However, Democrats, and even some Republicans, oppose an emergency declaration that would undoubtedly be challenged at the Supreme Court level, and be an unprecedented move that could affect the power of the presidency for generations to come.

If the funding impasse remains unresolved through President Trump’s second address to the union at the end of January, the country could face dire economic repercussions if the government shutdown lasts, as Trump has said before, for “months or even years.”

With nine of the 15 federal agencies closed, disaster relief could be delayed, leading to unforeseen circumstances as the winter storm season grows on. The federal court system would nearly cease operations as asylum requests are already back logged by months. Lapsed inspections from both the Food and Drug Administration (FDA) and the Environmental Protection Agency (EPA) could lead to dangerous outbreaks. The Internal Revenue Service (IRS) will not be able to process and send out tax refunds. Over eight million low-income Americans could lose food stamps, and at least two million without rental assistance could face eviction.

One way or another, though, President Trump says his proposed border wall, which has now been dubbed “peaches,” for currently unknown reasons, will get built. The question is, however, who will pay for it and will the federal government fully reopen anytime soon?