Allen: Tax cut to be offset by gas hikes
Senate hopeful in Martinsville on Saturday
Sunday, February 19, 2012
By DEBBIE HALL – Bulletin Staff Writer
Savings from a payroll tax cut approved by Congress on Friday will be wiped out by soaring fuel prices, according to former Gov. George Allen.
The $143 billion payroll tax cut, in effect, “shows how out of touch” its supporters are “with struggling families paying high gasoline prices,” said Allen, who is seeking to regain his former seat in the U.S. Senate in November.
Allen, who made a private campaign stop in Martinsville on Saturday, is among several contenders in the Republican Party’s June primary, including Del. Bob Marshall, tea party activist Jamie Radtke and Bishop E.W. Jackson, and Virginia Beach attorney David McCormick. The winner will run in the Senate election on Nov. 6.
Under the tax cut measure, workers would continue to receive a 2 percentage point increase in their paychecks, and people out of work for more than six months would keep jobless benefits averaging about $300 a week, The Associated Press reported. It would also head off a steep cut in reimbursements for physicians who treat Medicare patients, the AP added.
The tax cuts, jobless coverage and higher doctors’ payments would all continue through 2012, according to the AP.
“I’m one who is always looking at ways to reduce the tax burden on working families, but this is a typical patchwork approach,” Allen said of the measure.
Allen said he supports the production of oil and natural gas off the coast and earmarking royalties for road and transportation projects.
He also supports the Keystone XL pipeline project. President Barack Obama refused to approve the project recently after he said Republicans tied it to a provision for a short-term extension to the payroll tax cut that required him to either issue a permit to allow the 1,700-mile pipeline to be built or explain why it was not in the national interest by Feb. 21, according to USA Today.
The $7 billion project proposed by TransCanada would create a pipeline “linking a secure and growing supply of Canadian and American crude oil with the largest refining markets in the United States, significantly improving North American security supply,” according to www.transcanada.com.
Allen said he would rather America buy oil from “a good neighbor and ally” such as Canada than countries that conduct terrorism or have ties to terrorists.
The pipeline project also would help put people back to work, he said.
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