Americans for Tax Reform commends Governor Youngkin and House and Senate Republicans for following through on their promises to give Virginia taxpayers significant relief.
Governor Youngkin remained steadfast on his promise to bring meaningful tax relief to his constituents during his first year in office. Youngkin’s proposed budget amendments focused on providing Virginians with relief at the pump by establishing a three-month suspension of the state’s gas tax and capping the inflation index at 2%. With gas as high as $5 per gallon in some parts of the state this would have been a welcome sign for Virginia drivers. Unfortunately, Richmond Democrats killed the suspension of the gas tax amendment.
“Democrats failed to put politics aside for the good of Virginians — for a third time,” said Governor Youngkin. “At a time when inflation and gas prices are at a high in the Commonwealth, Virginians should know that higher gas prices are brought to you by [Virginia Senate Democrats].”
Despite the stubborn opposition of Virginia Democrats, the Governor Youngkin and Republican leaders secured big victories for taxpayers and parents. Governor Youngkin was able to see this through as the state legislature approved his budget amendment to eliminate the reduction on the cap for the Education Improvement Scholarship Tax Credit.
Virginia Republicans ran on a platform emphasizing tax cuts, and parental rights in education. They fought from day one to fulfill those promises. Led by Governor Youngkin and Speaker Gilbert two taxpayer protection signers, legislators made it a point to push for significant tax cuts in the 2022 session.
Filers will see a significant increase in their deductions. Individual filers will see their annual deduction increase from $4,500 to $8,000, and joint filers will see their deduction rise from $9,000 to $16,000. Taxpayers in Virginia will also see significant relief when it comes to the sales tax. The new budget will repeal the 1.5% portion of the tax that goes to the state government. Veterans will also benefit from this budget: it features a provision that will phase in a reduction on military pensions over several years. In his first budget proposal, with a divided state legislature, Governor Youngkin fought for his campaign priorities to be achieved. A welcome sign for Virginians throughout the commonwealth.
Speaker Gilbert (R-Shenandoah) praised the budget stating, “[it] accomplishes a great deal of what House Republicans told Virginians we’d work toward when we asked for their votes in November… This budget shows our commitment to improving Virginians’ lives, and helping our economy during uncertain times, all while protecting the taxpayers.”
Virginia’s budget required calling the legislature back for a special session. Still, after months of arduous negotiations, taxpayers will see the tax cuts promised on the campaign trail. Governor Youngkin and Legislative Republican’s tax victories in the budget embody what the Taxpayer Protection Pledge stands for: leaders who put the taxpayers first.