Impact of President Obama's tax plan on Virginia and how the planned tax hike or tax increase will impact Virginia's economy.

1. THE EFFECTS OF THE OBAMA TAX PLAN
Virginia
President Obama’s tax plan would allow portions TOTAL EMPLOYMENT
of the 2001 and 2003 tax cuts to expire, resulting in Annual Change in Jobs
steep tax hikes beginning in January 2011 for small
2011 2015 2020
businesses and those earning $250,000 or more. 0
The tax hikes would significantly affect the economy
in Virginia, most notably in the number of jobs and –3,000
change in personal income.
–6,000
Among the results, from 2011 to 2020, the state –9,000
of Virginia would:
• Lose, on average, 18,422 jobs annually. –12,000
• Lose, per household, $8,210 in total disposable
personal income. –15,000
• See total individual income taxes increase by
–18,000
$14,611 million.
–21,000
Source: Heritage Foundation calculations based on the IHS Global
Insight U.S. macroeconomic model, and data from the U.S. Census –24,000
Bureau and U.S. Department of Labor, Bureau of Labor Statistics.
–23,270
REAL DISPOSABLE INCOME TOTAL INDIVIDUAL INCOME TAXES
Annual Change per Household Annual Change in Millions of Dollars
$1,812.7
2011 2015 2020
$0 $2,000
$1,800
–$200
$1,600
$1,400
–$400
$1,200
–$600 $1,000
$800
–$800
$600
$400
–$1,000
$200
–$1,200 $0
2011 2015 2020
–$1,039.26
Chart VA • Obama Tax Plan by State heritage.org

2. THE EFFECTS OF THE OBAMA TAX PLAN
Change in Employment in Virginia
Average Annual Change in Total
10 8
Employment, 2011 to 2020, by
11
Congressional District
Jobs Lost: 800–1,399
Jobs Lost: 1,400–1,599
Jobs Lost: 1,600–1,799
Jobs Lost: 1,800–2,320 7
1
2
6
3
3 2
5
4
9
State: 18,422 jobs lost annually on average
Source: Heritage Foundation calculations based on the IHS Global Insight U.S. macroeconomic model, and data from the U.S. Census Bureau and U.S.
Department of Labor, Bureau of Labor Statistics.
Map VA • Obama Tax Plan by State heritage.org