Del. Ken Plum: Reinvigorating Virginia’s Economy

Del. Ken Plum/File photoVirginia is well on its way to economic recovery for many families, but working families across the state are telling me and other legislators that they feel like the recession never ended. Even in Northern Virginia, home to some of the wealthiest localities in the country, too many families struggle to earn enough to pay for basic necessities despite having full-time jobs.

At the same time that households are struggling, Virginia’s economy is growing at a snail’s pace, according to studies by the Commonwealth Institute for Fiscal Analysis.

Job growth has not kept up with the number of workers who want jobs, and state revenues have fallen as a result. Virginia needs families who earn good wages, who spend their earnings in the local economy to buy fuel, food, clothes, and other necessities, and who in doing so, help jump-start our economy. But when wages stagnate, the economy stalls, and that hurts all of us.

Fortunately, we have proven policy solutions to help strengthen our working families. We can make our state’s Earned Income Credit (EIC) refundable and increase the minimum wage. Unfortunately, many of my colleagues in the General Assembly have chosen to leave these income boosting solutions on the table. That’s unfortunate and short-sighted.

The Earned Income Credit is a targeted tax credit that middle class and low-income families can claim at tax time to reduce what they owe in state income tax. It also promotes work because you have to be working in order to claim it, and the credit is structured to reward working more hours.

As it stands now, if the value of the credit is greater than what you owe in state income tax, you’re not able to get the difference in a refund. But if the EIC were refundable, working families would get back some of their wages that they paid in sales taxes in one lump sum to pay for a car repair or for the child care they need to go to work. Nineteen states provide for some amount of refund.

While the EIC provides a bump in income once a year, raising the state minimum wage will increase earnings for low-wage workers in each paycheck. If Virginia increases the minimum wage to just over $10 by 2017, close to 700,000 workers throughout the state would see an increase in their wages. Out of this group, the vast majority are 20 or older, and close to 300,000 children have at least one parent who will get a raise.

Clearly, increasing the minimum wage predominantly helps working adults, not just teenagers, and it will help many parents who rely on these wages to care for children. More money to the working poor generates economic activity for small businesses.

Making Virginia’s Earned Income Credit refundable and increasing the minimum wage should be part of an effective, long-term strategy to strengthen our families and the economy. I have introduced two bills to accomplish this purpose. I hope local business groups will drop their opposition in order for the bills to pass. These bills should not be partisan. They will benefit all Virginians and Virginia businesses.

Del. Ken Plum represents Reston in Virginia’s House of Delegates. His opinions are not necessarily those of Reston Now’s. 

Recent Stories

Dranesville District Supervisor John Foust and others cut a ribbon to celebrate The Residence at Colvin Run’s opening (photo courtesy of The Residence at Colvin Run) A much-discussed senior living…

Herndon will work with Fairfax Water to add a pump station next to the police station (via Town of Herndon) A pump station proposed for the Herndon Police Department site…

Morning Notes

Railroad tracks are elevated above Lake Accotink Park (staff photo by Angela Woolsey) Retired Priest Found Not Guilty of Sexual Abuse — “Terry Wayne Specht, 69, of Pennsylvania was found…

This sponsored column is written by the team at Arrowine & Cheese (4508 Cherry Hill Road in Arlington). Sign up for the email newsletter and receive exclusive discounts and offers. Experience Arrowine’s Tastings & Events. Have…

The Ravel Dance Studio will re-open for fall classes 2020. The school will offer in person and virtual online instruction. With over 5000 sq. ft. to social distance the school has added air ionization filtration systems, ballet barres, acrylic dividers, hands free bathrooms, strict monitoring and more.

The Ravel Dance Studio will produce a Nutcracker Ballet Hollywood style video through the Reston Community CenterStage. REGISTRATION online begins August 17.

Submit your own Community Post here for just $99.

Chris Green is one of the DMV’s finest fitness instructors. A Lululemon and South Block ambassador, he is a coach and mentor to so many. He embodies grace, positivity and motivation in ways that no one else can. If we could all learn a thing or two from him, the world would be a much better place. He does so much for others, and does so with a smile on his face 99% of the time.

He recently ruptured his Achilles and has an incredibly long and tough journey ahead. As if COVID hadn’t impacted fitness professionals enough, throw this in the mix and it’s a double, even triple whammy. CG is no longer able to work and do what he loves for the time being because of this and we’d love your support.

Read More

Submit your own Community Post here for just $99.

×

Subscribe to our mailing list