The fundamental reality is that Virginia doesnnot need to augment our current tax stream in order to properly fund our schools, law enforcement, mental health and the myriad of government needs that our citizens rely on.
From Cardinal News. By Joe McNamara.
There has been significant posturing relative to the adoption of a two-year budget plan for the commonwealth of Virginia. Democrats, who hold a majority in both the House and the Senate, have correctly stated that they produced a timely balanced budget for the consideration of Governor Youngkin. But have they really produced a budget in good faith?
In repeated formal and informal statements, Gov. Glenn Youngkin has been crystal clear — a budget containing tax increases without the same or greater amount of tax decreases, is a bad deal for all Virginians. In short, Governor Youngkin has committed that Virginians will not pay more of their incomes to the Commonwealth. The Democrat proposed budget bill contains more than $2 billion in additional tax revenue relative to Youngkin’s introduced spending plan. This equates to increased Virginia taxation of $230 for every man, woman, and child in Virginia, or almost $1,000 for a family of four. Our struggling families will endure not only higher state taxes, but higher local taxes, and higher charges on their energy bills (due to reinstating regional carbon tax).
The Democrat-proposed budget plan perpetuates a troubling reality; that Virginia government spending is growing much faster than inflation. The Democrats delivered a budget that forecasts $31 billion in revenues (taxes) in fiscal year 26. This represents nearly a 50% increase from the initial revenue forecast of just five years earlier ($21 billion in fiscal year 21). Thankfully, working together, Republicans and Democrats have doubled the standard deduction, eliminated the state tax on every-day groceries, expanded select tax credits and deductions, and issued tax rebates over several of these years. The proposal now awaiting the Governor’s decision basically reverses all of that progress.
No one was elected in 2023 by promising to undo those previous tax cuts. The fundamental reality is that Virginia does not need to augment our current tax stream in order to properly fund our schools, law enforcement, mental health and the myriad of government needs that our citizens rely on.
Just like any competitive business, Virginia needs to compete with other states for investment, people, and jobs. Certain states are winning this battle. North Carolina, Tennessee, Georgia, South Carolina, Texas and Florida are all beating us in terms of population growth, AGI growth, GDP growth and net cumulative migration. These states also have something else in common — they have zero income tax or have taken steps to decrease their income taxes in recent years. When we understand the dynamics of this competition, we can appreciate Governor Youngkin’s insistence that we make Virginia more affordable for all of our citizens and the businesses who employ them.
It is time to dial down the rhetoric … on both sides. Virginia’s AAA bond rating is based on revenue flows and conservative budgeting for sure, but it is also based on a successful functioning political apparatus. The slimmest of majorities in the House and Senate do not constitute a mandate for sweeping policy changes. And it certainly does not justify the “I won’t negotiate” mentality that has creeped into Virginia politics. We owe it to Virginians to collaborate and engage in a deliberative process to achieve a good faith budget that serves all Virginians. If we put aside our prejudices and egos, I have every belief we can accomplish our goal.