By Steve Haner
During his four-year term, tax reductions approved by Governor Glenn Youngkin (R) will save Virginians just under $8 billion, and approximately $1.5 billion or more in additional annual savings after he departs. Most of the rule changes that have produced these benefits occurred in the 2022 and 2023 General Assembly sessions.
Then in 2024 the General Assembly stalemated over tax issues as Youngkin stymied a hard push from Democrats to increase several taxes, while Democrats spiked any efforts on the Governor’s part to expand on his tax cuts. A final budget compromise that left the tax rules basically unchanged was the best possible outcome in that environment.
This stalemate environment will not have changed for the 2025 Assembly, Youngkin’s final one. A legislative study commission that first met August 14 is heavily stacked in favor of Democrats, 9 to 3, and dominated by legislators who make all the spending decisions. Its work plan includes reopening the debate over expanding the sales tax to cover the digital economy, including the business-to-business provisions that were so controversial in 2024.
The data on the value of the Youngkin-era tax cuts come from page 14 of that work plan presentation. Most of the meeting was taken up with a primer on Virginia’s tax code. Legislators are usually better informed on how the money gets spent than on how it is raised by the state.
