RICHMOND, VA - Congressman Eric Cantor (VA-07) today commented on news of Governor Kaine’s plans to impose a 30-cent tax increase on cigarettes which will result in thousands of job losses.
"This proposed tax is an assault on jobs in Virginia, plain and simple, and is an attack on our economy. At a time like this, when families all over Virginia are struggling to make ends meet, the last thing Virginians need is more job losses and more tax increases.
"In Washington, at the federal level, were seeing the frail economy’s impact on our nation; at home in Richmond, families are feeling the sting of job losses and the harsh reality of major Fortune 500 companies cutting back and imposing layoffs. Now, the Governor is imposing additional tax increases which will result in more job losses on Virginia’s hard working families.
"This tax is more about subsidizing government waste at the expense of jobs in Virginia than needed revenue. According to the National Association of State Budget Officers, Virginia is in the top 5 in a ranking of spending growth by state for the last decade with a 107-percent growth in government in Virginia," concluded Cantor.
Effects on Virginia:
- Since January of 2008, the Richmond area has shed 5,123 jobs.
- The Altria family companies employ over 10,500 people - 5,500 of which live and work in Virginia. The average tenure of those employees is 15 years.
- In Virginia, there are 5,700 PM USA retirees.
- Last year, PM USA contributed nearly $720 to the state economy through employee wages and taxes on payroll, property, state corporate income and franchise.
- In 2007, it was announced that PM USA would consolidate cigarette manufacturing at its Richmond Manufacturing Center. Plans are also in place to invest approximately $230 million to further modernize the Richmond Manufacturing Center.
- Last year, PM USA opened a new 450,000 square-foot Center for Research & Technology, a $350 million investment, located in the Virginia BioTechnology Research Park.
- $11.1 million has already been donated this year to various Virginia non-profit organizations, including arts, education and environmental organizations by PM USA.
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