McDonnell/GOP Plan … Tax State Employees 5%

In his State of the Commonwealth speech Wednesday night, Governor Bob McDonnell detailed what can easily be described as “a major tax increase” forced upon Virginia’s public employees.

The Governor claims that the Virginia Retirement System (VRS) faces a $17.6 billion shortfall, and there is “no way to earn enough return on investment” to close the gap.  So the GOP/McDonnell plan is NOT to keep our Commonwealth’s commitment to our public employees by increasing revenues from other sources but to force employees to make their own 5 percent contribution to the retirement system.

The GOP/McDonnell plan comes after last year borrowing $620 million in cash from the VRS and now the plan is to effectively “tax” employees in a transparent move to push GOP preferred private “your-on-your-own” pension schemes and treat promises to public employees as if they did not exist.

 

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