Deeds unveils tax-refund plan

Democratic gubernatorial candidate R. Creigh Deeds yesterday unveiled a plan to jump-start Virginia's stalled economy that includes a payroll tax refund for every additional employee hired by businesses in the state.

Speaking in Roanoke and accompanied by Sen. Mark R. Warner, D-Va., Deeds also proposed increased funding for job training and options for unemployed workers to purchase emergency health insurance.

The state senator from Bath County reiterated his call for a statewide approach to fixing Virginia's transportation woes, focusing on relieving road congestion by promoting mass transit, telecommuting tax credits and expansion of high-speed rail.

"The whole idea of this plan is to create opportunity in every part of the state," Deeds said during a conference call with reporters. "We want to make sure the commonwealth is in a position to succeed in the next economy, once we recover."

Deeds proposed a refund on the federal payroll tax that would apply to every job created by businesses. His Republican rival, Bob McDonnell, has proposed a $1,000-per-employee tax credit to businesses that create 50 new jobs, or 25 in economically distressed areas.

The Democrat also proposes a doubling of the Governor's Opportunity Fund for economic development and a $10 million investment in job training. McDonnell has also called for an expansion of the fund, which currently has $11 million.

As part of his "Caring for Virginia" initiative, Deeds offers a program to forgive student loans for nurses educated in the state who are willing to serve in high-need areas. The program is similar to his education platform, which would offer similar incentives to teachers specializing in science, technology, engineering and mathematics.

On the environment, Deeds proposed setting a mandatory renewable-energy standard of 15 percent by 2020, and monitoring government spending with the appointment of an "efficiency improvement director" from the business community.

Contact Jim Nolan at (804) 649-6061 or .