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The Pence Economy > The Kaine Economy

- October 1, 2016

Pence's Record Of Economic Success As Governor Of Indiana Far Outshines Kaine's Fiscal Failures As Governor Of Virginia

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TOP TAKEAWAYS

  • Since assuming office Governor Pence has worked to reduce Indiana's income tax and remove other taxes to foster economic growth, whereas Kaine broke his campaign promise to not raise taxes within his first week as Virginia's governor.
  • Indiana's economy has boomed under Governor Pence's leadership, while under Governor Kaine Virginia's economy suffered a series of setbacks and shortfalls.
  • The Hoosier state under Governor Pence has seen increases in private sector, non-farm, construction, and manufacturing employment as compared to the significant declines that occurred during Governor Kaine's term in Virginia.
  • Governor Pence's ability to keep a balanced budget and keep Indiana's per capita debt load low is a stark contrast to Governor Kaine's record of being the first governor in Virginia's history to leave office with less revenue than the one he inherited with a multi-million dollar shortfall.

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GOVERNOR PENCE HAS SHOWN HIS ABILITY TO RELIEVE TAX BURDENS IN INDIANA, WHILE AS GOVERNOR KAINE BROKE HIS PROMISE AND SOUGHT UNPRECEDENTED TAX HIKES IN VIRGINIA

Governor Pence Has Overseen The Largest Income Tax Cut In Indiana's History And Has Relieved Hoosiers Of Other Burdensome Tax Provisions

"In Just Three Years As Governor, Pence Successfully Pushed Proposals To Cut Income Taxes, Corporate Taxes, Personal Property Taxes, And Completely Eliminate The State's Inheritance Tax." (Richard C. Auxier, "TaxVox: Campaigns, Proposals, And Reforms," Tax Policy Center, 7/15/16)

Pence's Actions Reduced Indiana's Tax Rate By 5 Percent to 3.23 Percent Over Two Years. "When Pence took office, Indiana's 3.4 percent flat individual income tax rate was already the second-lowest in the nation (only Pennsylvania's 3.07 percent was lower). Still, in his first state of the state address, Pence pitched a 10 percent cut as an 'affordable' way to 'unleash half a billion dollars' into Indiana's economy. The legislature eventually passed a 5 percent reduction, bringing Indiana's tax rate down to 3.23 percent over the next two years." (Richard C. Auxier, "TaxVox: Campaigns, Proposals, And Reforms," Tax Policy Center, 7/15/16)

  • This Tax Cut Was The Largest In Indiana's History. "'Today Hoosier taxpayers won a great victory. The agreement reached between our administration and legislative leaders will be the largest state tax cut in Indiana history,' Pence said in a statement." (Eric Bradner, "Gov. Pence; 5 Percent Income Tax Cut Largest In Indiana History," RTV 6, 4/25/13)

Pence Repealed The Common Construction Wage In 2015, Lifting Wage-Setting Burdens From Local Governments. "With the stroke of a pen Wednesday, Gov. Mike Pence ended a system the state and local governments have used for eight decades to set wages on most publicly funded construction projects. House Enrolled Act 1019, which takes effect July 1, repeals Indiana's common construction wage, also known as prevailing wage, by eliminating the wage-setting duties of local boards of taxpayers and contractors in favor of free market pay scales." (Dan Carden, "Pence Signs Repeal Of Common Construction Wage," The Times Of Northwest Indiana , 5/6/15)

Pence's Administration Advanced Funds To Eliminate An Outstanding Federal Unemployment Loan, Allowing Businesses To Avoid Paying $327 Million In Taxes. "Governor Mike Pence Thursday announced that the state of Indiana will advance funds to the Department of Workforce Development (DWD) to eliminate the outstanding federal unemployment loan and avoid the Federal Unemployment Tax Act (FUTA) penalty facing employers in January. If the loan balance is paid off by November 10, 2015, businesses will avoid $327 million in taxes, equating to $126 per employee in the state." ("Gov. Pence Announces Advance Payment To Unemployment Insurance Loan," WBIW, 10/22/15)

While Running For Governor Kaine Promised To Not Raise Taxes, But Less Than A Week Into Office Broke This Promise And Continued To Advocate For Massive Tax Hikes In Virginia During His Term

In 2005: "Kilgore And Kaine Say They Would Not Raise Taxes." "Kilgore and Kaine say they would not raise taxes, even though each pledges to improve popular services, including education and transportation." ("Virginia Election Primer," The Washington Post, 11/6/05)

  • Kaine Was Inaugurated On January 14th, 2006; He Introduced His Tax Increase Proposal Less Than A Week Later On January 20th. (Bob Lewis, "Kaine Sworn In As Virginia's 70th Governor," The Associated Press, 1/14/06; Michael D. Shear and Rosalind S. Helderman, "Va. Leaders Push Increase In Taxes, Fees To Aid Roads," The Washington Post, 1/21/06)

Kaine Proposed A State Income Tax Increase Which Would Have Amounted To $2 Billion A Year. "Virginia's hated local car tax would be replaced with a $2 billion-a-year income tax increase under the new budget Gov. Timothy M. Kaine presented Friday. The tax proposal from the Democratic governor who leaves office next month accompanied a budget that prescribes about $1.2 billion in spending cuts in a bid to reconcile a $3.6 billion state revenue shortfall for 2010 through 2012. The plan was on an immediate collision course with incoming Republican Gov. Bob McDonnell, who has pledged to reject any general tax increase, and an anti-tax GOP House majority strengthened by last month's elections." (Bob Lewis and Dena Potter, "Va. Gov: End Car Tax, Raise Income Tax 1 Percent," The Associated Press, 12/18/09)

  • If Enacted, The Income Tax Increase Would Have Been Virginia's First Since 1972. "Besides a budget bill that deeply cuts funding for state-supported colleges, mental health services and public safety, Kaine is preparing a separate bill that would phase in a 1 percent income tax increase over two years. It would be the first income tax increase since 1972." (Bob Lewis and Dena Potter, "Va. Gov: End Car Tax, Raise Income Tax 1 Percent," The Associated Press, 12/18/09)
  • "The Increase Would Mean A Hike In The Income Tax Rate From 5.75 Percent To 6.75 Percent For Those Earning More Than $17,000, 60 Percent Of Taxpayers." (Anita Kumar and Rosalind S. Helderman, "Virginia Governor Proposes An Income Tax Increase,"The Washington Post, 12/19/09)

Kaine Defended The Tax Hike In An Interview With The Washington Times, Saying It Was The Most Responsible Way To Make Up For The Budget Shortfall. "Virginia Gov. Tim Kaine said Wednesday that a 1 percentage point increase in the state's income tax that he has proposed in his final weeks in office is the most responsible way to make up a nearly $2 billion shortfall in the state's finances. 'I think the only other alternatives are draconian cuts that would squander Virginia's leadership position or kind of gimmicky 'Let's take a bunch of money out of the retirement fund' or 'Let's pull out the credit card and borrow a bunch of money.' But I think that would threaten our AAA bond rating,' Mr. Kaine told The Washington Times in an interview at the governor's mansion." ("Kaine Defends Urging Tax Hike In Final Budget," The Washington Times, 12/24/09)

GOVERNOR PENCE HAS OVERSEEN A BOOMING INDIANA ECONOMY, WHILE GOVERNOR KAINE STRUGGLED TO MANAGE VIRGINIA'S ECONOMY

Governor Pence Has "Earned Strong Marks" On The Economy

With Almost A Full Term Managing The State's Budget And Economy, Governor Pence "Can Rightfully Take Credit" For Indiana's Economic Success. "That's why governors (and presidents) are quick to take credit for strong economies they inherit and ready to heap blame on their predecessors when things are going badly. But Pence has had 3 ½ years managing the state's budget and economy, so he can rightfully take credit (or accept blame) for what's happened since." (John W. Schoen, "As VP Candidate, Pence Will Surely Tout's Indiana's Recovery," CNBC, 7/11/16)

  • The Indy Star's Tim Swaren: "I've Been Tough On Pence When He Deserved It. But On Managing Economic Policy, Crafting A Strategy For Job Creation And Setting A Vision For The Future, The Governor Has Earned Strong Marks." "I've been tough on Pence when he deserved it. But on managing economic policy, crafting a strategy for job creation and setting a vision for the future, the governor has earned strong marks. Even if Indiana's economic reality isn't as rosy (or dour) as the campaign commercials proclaim." (Tim Swarens, "Swarens: What Mike Pence Gets Right About Indiana's Economy," Indy Star , 6/25/16)

Governor Kaine's Legacy In Virginia Is Defined By "Economic Woes" And "Incomplete Tasks"

The Virginian-Pilot Headline: "Appraising Kaine: A Term Marked By Tragedy, Economic Woes." (Julian Walker, "Appraising Kaine: A Term Marked By Tragedy, Economic Woes," The Virginian-Pilot , 1/11/10)

The Washington Post Headline: "Kaine Enters U.S. Spotlight, Leaves Incomplete Tasks In Va." (Anita Kumar, "Kaine Enters U.S. Spotlight, Leaves Incomplete Tasks In Va.," The Washington Post, 1/13/10)

GOVERNOR PENCE'S RECORD ON EMPLOYMENT IN INDIANA FAR OUTSHINES GOVERNOR KAINE'S IN VIRGINIA

While Private Sector Employment Has Boomed In Indiana During Governor Pence's Term, Private Sector Employment In Virginia Significantly Declined Under Governor Kaine

Under Governor Pence, Private Sector Employment In Indiana Has Increased By 156,800 Jobs, From 2,492,900 In January 2013 To 2,649,700 In August 2016. (Bureau Of Labor Statistics, Accessed 9/27/16)

Under Governor Kaine, Private Sector Employment In Virginia Declined By 133,800 Jobs, From 3,045,100 In January 2006 To 2,911,300 In January 2010. (Bureau Of Labor Statistics, Accessed 9/27/16)

As Non-Farm Employment In Indiana Has Seen A 5.4 Percent Increase Under Governor Pence, Under Governor Kaine Nonfarm Employment In Virginia Declined By 2.6 Percent

Under Governor Pence, Indiana's Total Non-Farm Employment Increased 158,600, Or 5.4 Percent, From 2,916,400 In January 2013 To 3,075,000 In August 2016. (Bureau Of Labor Statistics, Accessed 9/27/16)

Under Governor Kaine, Virginia's Total Non-Farm Employment Declined 97,800, Or 2.6 Percent, From 3,713,300 In January 2006 To 3,615,500 In January 2010. (Bureau Of Labor Statistics, Accessed 9/23/16)

Indiana's Construction Employment Has Increased 5.2 Percent Since Governor Pence Took Office, While In Virginia Construction Employment Plummeted 27.6 Percent Under Governor Kaine

Under Governor Pence, Indiana's Construction Employment Increased 6,500, Or 5.2 Percent, From 123,700 In January 2013 To 130,200 In August 2016. (Bureau Of Labor Statistics, Accessed 9/27/16)

Under Governor Kaine, Virginia's Construction Employment Declined 69,000, Or 27.6 Percent, From 249,500 In January 2006 To 180,500 In January 2010. (Bureau Of Labor Statistics, Accessed 9/23/16)

  • Construction Was Among The Top Five Sectors With The Most Laid-Off Workers Filing Unemployment Claims Under Kaine. "Locally, the top five categories with the most laid-off workers filing unemployment claims are production, construction, information/records clerks, material moving, and retail." (Lorraine Halsted, "Despite Mixed Data, Local Joblessness Eases," The Winchester Star, 10/3/09)

While Manufacturing Employment Has Increased By 27,000 Jobs Under Governor Pence In Indiana, Under Governor Kaine In Virginia The Number Of Manufacturing Jobs Dropped By 59,800

Under Governor Pence, Indiana's Manufacturing Employment Increased 27,000, Or 5 .5 Percent, From 488,100 In January 2013 To 515,100 In August 2016. (Bureau Of Labor Statistics, Accessed 9/27/16)

Under Governor Kaine, Virginia's Manufacturing Employment Declined 59,800, Or 20.4 Percent, From 292,600 In January 2006 To 232,800 In January 2010. (Bureau Of Labor Statistics, Accessed 9/23/16)

GOVERNOR PENCE'S POLICIES HAVE REDUCED UNEMPLOYMENT IN INDIANA, WHILE UNDER GOVERNOR KAINE THE NUMBER OF UNEMPLOYED VIRGINIANS MORE THAN DOUBLED

Governor Pence's Policies Have Significantly Reduced The Unemployment Rate In Indiana, While Under Governor Kaine Virginia's Unemployment Rate Grew

Under Governor Pence, The Unemployment Rate In Indiana Has Declined, From 8.4 Percent In January 2013 To 4.5 Percent In August 2016. (Bureau Of Labor Statistics, Accessed 9/27/16)

  • WIMS Radio June 2016 Headline: "Indiana's Unemployment Rate Drops." ("Indiana's Unemployment Rate Drops," WIMS Radio, 6/19/16)

Under Governor Kaine, Virginia's Unemployment Rate Increased, From 3.2 Percent In January 2006 To 7.4 Percent In January 2010. (Bureau Of Labor Statistics, Accessed 9/23/16)

Correspondingly, Under Governor Pence The Number Of Unemployed Hoosiers Has Dropped While Under Governor Kaine The Number Of Unemployed Virginians More Than Doubled

Under Governor Pence, 113,826 Fewer Hoosiers Are Unemployed, From 266,731 In January 2013 To 152,905 In August 2016. (Bureau Of Labor Statistics, Accessed 9/27/16)

Under Governor Kaine, The Number Of Unemployed People In Virginia Increased 179,249, From 125,379 Residents In January 2006 To 304,628 Residents In January 2010. (Bureau Of Labor Statistics, Accessed 9/23/16)

  • Kaine Filed A 2009 Request With The Department Of Labor For A $252 Million Loan To Meet The Obligations Of Virginia's Unemployment Compensation Program. "According to a news release from the the Governor 's office, Kaine filed a request with the U.S. Department of Labor for an advance of $252 million from the Federal Unemployment Account to meet the obligations of the Virginia Unemployment Compensation Program through December 2009. The Governor's office predicts the Virginia's Unemployment Compensation Trust Fund will run out of money in the middle of October." ("Gov. Kaine Asks Feds For Unemployment Loan," NBC 10, 9/15/09)

in terms of BUDGET AND DEBT MANAGEMENT, THERE IS NO comparison between GOVERNOR pence and GOVERNOR kaine IN TERMS OF SUCCESS

While Pence Has Worked To Keep Indiana's Debt Burden Low, Kaine Left The Governor's Office With Less Revenue Than He Inherited

Indiana Has The 11th Lowest Per Capita Debt Load In The Nation. "Indiana has a relatively modest debt load compared with other states, according to two new reports this week. The state had $3 billion in net tax-supported debt in 2015, according to an analysis by credit rating firm Moody's. That includes debt from bonds and leases and amounts to $463 per resident - the 11th best in the nation." (Tony Cook, "Pence Touts Indiana's Modest Debt Load," Indy Star, 5/17/16)

The Richmond Times-Dispatch's Jim Nolan: "Kaine Is The First Governor In The State's Modern History To Leave Office With A Budget That Has Less Revenue Than The One He Inherited." (Jim Nolan, "The Timothy M. Kaine Era: Term Marked By Travails, Progress," Richmond Times-Dispatch , 1/3/10)

  • Kaine: "I Didn't Have A Bumper Sticker That Said 'Kaine Will Cut More Out Of The State Budget Than Anybody In History.'" "He has cut $7 billion from state spending since 2007, and he recently presented a budget for 2010-12 that slashes an additional $2.3 billion. Kaine is the first governor in the state's modern history to leave office with a budget that has less revenue than the one he inherited. 'I didn't have a bumper sticker that said, 'Kaine will cut more out of the state budget than anybody in history,'' he tells a gathering at the opening of a Woodbridge center for employment and job-training services." (Jim Nolan, "The Timothy M. Kaine Era: Term Marked By Travails, Progress," Richmond Times-Dispatch , 1/3/10)

Pence Has Maintained A Balanced Budget While Cutting Taxes, Whereas Kaine Pushed Virginia's Budget Into A Muti-Million Dollar Shortfall

"Pence Maintained Indiana's Balanced Budget Throughout His Three Years Of Tax Cutting." "Unlike some other governors, Pence maintained Indiana's balanced budget throughout his three years of tax cutting-mostly by keeping his state's spending growth rate below inflation." (Richard C. Auxier, "TaxVox: Campaigns, Proposals, And Reforms," Tax Policy Center, 7/15/16)

Richmond Times-Dispatch 2009 Headline: "Va. Budget Outlook Worsens; Shortfall Could Grow By Up To $300 Million In Bad Economy, Lawmakers Told." (Tyler Whitley, "Va. Budget Outlook Worsens; Shortfall Could Grow By Up To $300 Million In Bad Economy, Lawmakers Told," Richmond Times-Dispatch, 11/18/09)


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