Scott: Proposed cuts in federal budget will hit Hampton Roads

NORFOLK

When U.S. Rep. Bobby Scott asked people Monday night to speak their minds about the federal budget and jobs, some offered advice, others praised him and a few scolded him for what the federal government is or isn't doing.

But most of the dozen or so speakers at the town-hall-style meeting made it clear they're worried about the economy and the future.

The Newport News Democrat set a sober tone when he began the evening by telling the standing-room-only crowd in the Norfolk City Council chambers that when Congress talks about cutting trillions of dollars in federal spending it will have a "significant effect on jobs in this area."

Michael Cassidy, president of the Commonwealth Institute for Fiscal Analysis, a Richmond-based think tank, also noted that major cuts in federal spending would hurt Virginia, where 45 percent of all income comes directly from the federal government through paychecks and entitlement or retirement programs.

"In the next few weeks," Scott said, "we will begin to find out about cuts."

Using detailed charts, he showed the crowd of more than 150 people how the out-of-balance federal spending and revenue was driving an effort in Congress to find ways to cut deficit spending by about $2.5 trillion over the next 10 years.

Scott has argued it is wrong to cut spending and keep in place the Bush-era tax cuts.

Jack Bray of Portsmouth told Scott that he and the rest of Congress aren't doing enough to control spending.

"Our federal government is out of control," Bray said, adding he believes many major suppliers like shipbuilders are constantly asking for more money because of cost overruns that shouldn't be allowed. "Can we control these people?" he asked.

Norfolk resident Manuel Hildalgo said the federal tax laws should be changed so U.S. companies can't reap any tax benefits for their overseas operations.

"There should be no tax credit for goods not manufactured and assembled here," Hildalgo said. "I think that would get a lot of jobs."

Rob Meredith of Portsmouth told Scott that "you and your colleagues and the Obama administration haven't made good things happen the past few years." Scott didn't argue.

"We have not been fiscally responsible," Scott said, reiterating his argument that Congress and the president shouldn't have kept in place tax cuts that cost the government $400 billion in annual revenue.

The tax cuts, first approved in 2001 and 2003 during President George W. Bush's administration, provided tax breaks for all Americans.

Included were cuts in the income tax rate, a $1,000-per-child tax credit, tax breaks for college costs, lower taxes on capital gains and dividends, and tax incentives for businesses.

"The only rational thing to do is let the tax cuts expire," Scott said.

Bill Bartel, (757) 446-2398, bill.bartel@pilotonline.com