by Steve Haner
In his final budget bill, departing Governor Ralph Northam (D) proposed a one-time rebate of just over $1 billion to Virginia income-tax payers, and additional policy proposals that would cut another $1.1 billion in state revenue for the remainder of this fiscal year and the next two.
New Governor Glenn Youngkin (R) has now seen and raised Northam’s stakes, proposing an additional $2.9 billion in rebates or tax cuts for the first half of his term. The vast majority of his proposal, $2.1 billion, represents the tax break created by doubling the individual standard deduction.
The figures come from a review of the introduced Northam budget prepared by the legislative money committee staffs, and Youngkin’s recently-released summary of his high priority legislative agenda. That list from the new governor includes the tax bills and related budget amendments, which track and now put price tags on the various promises he made during his campaign.
The General Assembly now in session could approve both tax cut lists, a total of $5 billion in tax relief, most of it (because of the one-time rebates) in fiscal year 2023, which begins July 1. In four weeks, on February 20, the House and Senate money committees will reveal their versions of the budget and which of these proposals made the cut.
Youngkin’s amendments are made to the Northam budget document, and he is assuming that many of the Northam proposals are adopted. Northam’s major proposal was the one-time rebate of $250 per taxpayer from state surplus revenue, which he estimated would return a total of $1.05 billion. Youngkin’s campaign promise was for $300 ($600 per couple), so he adds another $202.8 million for a total rebate of about $1.25 billion. (more…)
by Dick Hall-Sizemore
by James C. Sherlock
