
By Steve Haner
Governor Glenn Youngkinโs package of proposed tax changes is now stalled in both the Virginia Senate and the House of Delegates. A House subcommittee spiked it Feb. 5 and then dashed other bills imposing major tax increases on higher income Virginians. A full Senate committee refused his bill on Feb. 6.
Of course, anything is possible until the General Assembly adjourns in March, but it seems only two major tax increase proposals are still viable in the 2024 Assembly. ย
The first would allow all Virginia cities and counties to add an additional 1% to the sales and use tax within their borders for school spending, if a local referendum approves it. Current law has allowed that in eight counties and one city but this bill would expand that to the entire state. It is advancing in both chambers.ย
The second, not usually discussed as a tax hike, is the proposal for a new state trust fund to provide weekly payments to employees taking family or medical leave from work. The bill calls for a payroll tax to fund the benefits but does not specify a tax rate or indicate just how much of an employeeโs wage would be taxed. The Virginia Employment Commission based its fiscal estimates on a tax of just under 1%.ย ย
Bills creating this new state-paid family and medical leave benefit program are now in the budget committees of both chambers, and they have until February 18 to reveal their budget amendments. This program could easily become a $1-2 billion annual entitlement. The underlying federal Family and Medical Leave Act (FMLA) provides no income replacement, just up to 12 weeks of job protection for covered absences. (more…)

from Liberty Unyielding

by Matt Hurt
by Jon Baliles









