The Virginia House of Delegates passed Governor Glenn Youngkin’s bills to cut the business tax rate from six to five percent and the top individual income tax bracket from 5.75 to 5.5 percent. The two bills would also increase individual and business income tax deductions.
“Virginians are still overtaxed, they deserve to keep more of their hard-earned paychecks and today’s significant move by the House of Delegates means Virginians are one step closer to additional relief,” Governor Glenn Youngkin said in a release after the bills passed out of the House on Wednesday.
Governor Glenn Youngkin spoke at a rally on Monday where he shot hoops with children and called for his supporters to pressure their legislators to support the tax relief package included in his budget amendment proposal.
RICHMOND, Virginia — Governor Glenn Youngkin continued his call for tax cuts, changes to education policy, and increased funding for law enforcement as part of his Wednesday State of the Commonwealth address; he described his first term as a reversal after his Democratic predecessors, and called on legislators to “press the accelerator.”
“I am here this afternoon to communicate that the state of our Commonwealth is substantially better than it was last year,” he said to applause. “We are still a great distance from our destination. A destination where Virginia truly is the best place to live, work, and raise a family. I’m here this afternoon to urge us to accelerate our efforts to get more done and to get it done faster.”
Virginia’s FY 2023-2024 budget includes some wins for both businesses and workers, according to pro-business organization NFIB Virginia and pro-labor organization Virginia AFL-CIO. General Assembly negotiators have emphasized the compromise nature of the budget, but flashy proposals on tax relief, education, and law enforcement have gotten most of the attention.
“Governor Youngkin and legislators agreed on many issues that are important to Virginia’s small business, including full funding of the commonwealth’s unemployment insurance program, but we’re disappointed that so some key issues didn’t make the final cut, like the three-month suspension of the fuel tax,” NFIB Virginia State Director Julia Hammond said in a press release.
Continuing his “Thank You, Virginia” tour, Governor Ralph Northam announced that his upcoming budget proposal will include tax cuts and refunds, including some similar to those Governor-elect Glenn Youngkin has called on Northam to include in his budget.
“When Virginia cuts taxes next year, it should be done in a way that benefits working people,” Northam said in a Tuesday press release. “Many professionals made it through the pandemic fine, as their work simply moved online. But workers haven’t been so lucky when their jobs require close contact with other people. Some jobs simply can’t move online—restaurant workers, early childhood educators, home care attendants, and others—and we all depend on the people who do this work. Virginia can help working people by eliminating the state grocery tax, providing one-time rebates, and giving a tax break to people who are working.”