Richmond, VA — Hung Cao called a radical plan that could raise taxes on families and small businesses “perfect” – squeezing the pockets of millions of Virginians.
In February of 2022, Florida Senator Rick Scott, then serving as the leader of the National Republican Senatorial Committee, rolled out a radical budgetary plan for the GOP that he saw as a blueprint if he were to become Majority Leader. Hung Cao bragged that he was consulted by Rick Scott about the plan and called it “perfect” and endorsed Rick Scott for Majority Leader and called him his political mentor.
Part of Scott’s 11-point plan was to impose a federal minimum tax, which would harm families and small business owners. According to a report from the Insititute on Taxation and Economic Policy, a new federal minimum tax in the Scott plan would raise taxes on 34.5 percent of Virginians. This includes active duty servicemembers who are currently exempt from paying federal income tax on combat pay.
The plan would also raise taxes on 45.8 percent of Virginia small businesses, with the typical business paying an extra $1,700 per year in taxes.
Scott’s plan would permanently extend the cap in the SALT deduction in Trump’s tax cuts. Virginia would be one of the states hardest hit by eliminating this deduction, with 37 percent of taxpayers in Virginia utilizing the SALT deduction.
Mitch McConnell even lambasted Scott for this radical plan, saying “It’s just a bad idea.” Leader McConnell knows how damaging this plan is saying, “We will not have as part of our agenda a bill that raises taxes on half the American people, and sunsets Social Security and Medicare within five years.” What is crystal clear is that while this plan was far from perfect for McConnell, Hung Cao thinks this radical scheme would be “perfect.”
“While Senator Kaine is working to lower costs for Virginians, Hung Cao is actively supporting plans that would hike taxes on Virginia families and small businesses,” said Michael Beyer, Communications Director for Senator Kaine’s campaign. “Senator Kaine is focused on making more room in Virginians’ family budgets. He is working across the aisle to make child care more affordable and to expand the Child Tax Credit. Senator Kaine knows the importance of small businesses to the economy and that increased taxes would be detrimental.”
Cao’s Cuts is a series the Kaine for Virginia campaign launched to highlight how Hung Cao supports a radical plan that could weaken border security; defund law enforcement; jeopardize veterans’ benefits; raise taxes on active-duty servicemembers and disenfranchise veterans; put Medicare, Social Security and Medicaid on the chopping block; raise taxes on Virginia families and small businesses; and give the rich giant tax giveaways.
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