Governor Glenn Youngkin, First Lady of Virginia Suzanne S. Youngkin, Lt. Governor Winsome Sears, Attorney General Jason Miyares and Legislators after the signing of Virginia's budget on the Capitol steps on Thursday, September 14, 2023. by Christian Martinez is licensed under CC
Governor Glenn Youngkin signed Virginia’s long overdue budget today after Democrats delayed the process by six months. Thanks to the leadership of the Governor and Virginia Republicans, Virginians can look forward to over $1 billion in tax relief through one-time tax rebates, an increase to the standard deduction, and the reinstatement of a sales tax holiday.
Despite some successes of this compromise, this budget could have delivered even more relief for Virginians. Unfortuntely, Senate Democrats commited to being a brick wall against Governor Youngkin’s agenda. Senator Louise Lucas (D) expressed time and time again that she was proud of and “‘ready to expand [the] blue brick wall.” Unfortunately, this wall has too often robbed Virginians economic opportunity and is holding the commonwealth back.
Thanks to Democrats like Senator Lucas, the commonwealth’s tax code is uncompetitive with neighbors such as North Carolina and West Virginia, who have put their income taxes on the path to zero. Tax brackets in Virginia are more than three-decades-old and do not reflect the current needs of Virginians. Since 1990, median income across the state rose by 108%; however, single filers earning the median income saw taxes increase by 173%. Rather than flattening tax brackets, the compromised tax reductions came only in the form of tax rebates of $200 for single filers and of $400 for joint filers.
Republican leaders remain frustrated by Democrats’ unwillingness to adjust the state’s tax brackets, which would have returned more money into the pockets of hard-working citizens. When asked to comment on the budget deal, Youngkin said: “I’m looking for $1 billion in tax relief … .if we can get one-time relief now and move forward with ongoing cuts next year, that is a compromise I can live with.”
“Governor Youngkin and Republican state legislators deserve our gratitude for delivering tax reform that provides hardworking Virginian taxpayers with billions in relief,” said Grover Norquist, President of Americans for Tax Reform. “As neighbors like West Virginia and North Carolina put the income tax on the path to zero, it is high time for Virginia to follow suit. I am confident that the Governor and a Republican Senate and House of Delegates will continue to deliver permanent relief in the next legislative session.”