Goldman opposes proposed increases in state taxes on auto/consumer spending/housing sectors as bad economic policy given current realities

Goldman for Mayor - 9 July 08- For Immediate Release - Contact, 804-833-6313


Goldman opposes raising General Assembly proposals to raise taxes on auto industry, consumer spending as BAD ECONOMIC POLICY for Richmond and the Metro area right now.

"The job of Mayor is non-partisan and requires taking unpopular stands. So today I have to tell my fellow Democrats in the House of Delegates to the General Assembly that the working families and business owners of Richmond can not afford the tax increases being proposed on automobile sales and on consumer spending in our area."

(Richmond) - Paul Goldman, candidate for Mayor, said today that " Richmonder's live in the real world, and so must those elected to represent them. To be a leader, one has to be willing to do the unpopular thing if that is in the public interest. And while I respect my fellow Democrats in the General Assembly, the Mayor of Richmond is a non-partisan job."

"Yes, we have transportation issues to address both at the state and local levels. But there is a greater reality right now facing the people of Richmond and the Metro area: working families, and business owners, are facing an economic squeeze and moreover, there are several key components of our economic base under special pressure, such as the automobile sector."

" Unfortunately, there is no turnaround in the forseeable future. In case the members of the General Assembly have not been paying attention, car sales are falling, more than they have for many, many years."

"Recently, a leading banking and brokerage firm - that is to say among those such firms still left standing amid the Wall Street carnage - said it was possible General Motors might have to declare bankruptcy! GM stock is at it's lowest point since the Eisenhower Administration.

" As the new car industry goes, so goes the dominoes down the line, to the auto dealers, the auto repair sector and so on, with tens of thousands of jobs, and related business owners at risk."

"Bottom line: Regardless of where you may have studied economics, it is bad economic policy to raise taxes - that is to say increase government-mandated costs - on sectors during these kinds of contractions."

"Accordingly, I oppose such increases and urge Richmond legislators, Democrats and Republicans, to do the same.

"As for the housing tax increase being proposed for Northern Virginia, this is not related to the job of Mayor of Richmond. However, let me say that if the General Assembly tried to impose such an increased tax on our area, I would strongly oppose it, as once again, those who live in the real world know the economic squeeze facing the housing industry right now.

"And until the housing sector turns, the economy can not make a full recovery."