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.
RICHMOND, Virginia — Governor Glenn Youngkin spoke at a small 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.
“We can pay for this. We have an expected surplus. We’re projecting continued excess revenues. We can afford this and we can still invest in a record education budget. We can still invest in the transformation of our behavioral health system. We can still invest in law enforcement. We can still invest to make government work for you,” he said.
Virginians won’t have to pay income tax on forgiven federal student debt recently announced by the White House, thanks to efforts in previous years to make sure Virginians weren’t taxed on COVID-19 relief.
“[T]he amount of student loan debt that was forgiven will be left out of federal adjusted gross income, and, by extension, Virginia taxable income, without any further action by the General Assembly,” Virginia Division of Legislative Services Stephen Kindermann said in an email Delegate Vivian Watts (D-Fairfax) shared with The Virginia Star.
The House of Delegates Finance Committee advanced a bill to eliminate Virginia’s grocery tax and a bill to double the standard deduction on income tax; those are two key promises Governor Glenn Youngkin made in his campaign as part of his focus on “kitchen-table issues.”
HB 90, sponsored by Delegate Joe McNamara (R-Roanoke) exempts food for human consumption and essential personal hygiene items from state and local sales taxes. On Monday, Delegates Candi Mundon King (D-Prince William) and Delegate Richard ‘Rip’ Sullivan (D-Fairfax) expressed concern about how a different Youngkin-inspired tax bill would impact low-income Virginians. McNamara recalled those remarks in the Wednesday committee meeting.
RICHMOND, Virginia – The Republican-controlled House of Delegates passed two bills addressing the minimum wage, including a repeal of increases passed by Democrats in previous sessions. Delegate Nick Freitas (R-Culpeper) and Delegate Sally Hudson (D-Charlottesville) debated about the need for minimum wage increases on the House floor Monday.
“I have it on good theological guidance that nothing in this bill is going to cause you to be cast into eternal darkness and gnashing of teeth,” Freitas said, defending his HB 320 against a claim that eliminating minimum wage increases harms “the least among us,” a reference to Jesus’ teaching in the Bible.
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.”
Glenn Youngkin announced a 113-member list of legislators, law enforcement, business owners, and Republican Party of Virginia officials that will be part of his transition “landing teams” — separate from the transition steering committee he announced earlier in November. The teams will coordinate with Governor Ralph Northam’s cabinet.
“In order to change the trajectory of our great Commonwealth, our transition team is utilizing the vast experience of business owners, law enforcement officials, veterans, healthcare providers, industry experts, and—most importantly—parents to determine how government can begin to serve Virginians better and start delivering on our Day One promises of better schools, safer streets, a lower cost of living, and more jobs,” Youngkin said in a Wednesday press release.