Youngkin proposes $400M in tax relief in next budget

Published: Aug. 19, 2022 at 6:46 PM EDT|Updated: Aug. 19, 2022 at 8:17 PM EDT
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RICHMOND, Va. (WWBT) - Governor Glenn Youngkin is proposing nearly $400 million in tax relief in the next budget. He’s touting a record year for Virginia’s economy as one reason the state can afford it.

“Together, we provided $4 billion in tax relief – record tax cuts at a time when Virginians are feeling the pinch from the silent thief that is inflation. Together, we delivered on our promise to pass the largest education budget in Virginia’s history,” Youngkin said Friday.

The recent budget also included $400 million to support law enforcement; although it was a record year, the state ended up spending a lot less.

“The combination of the roughly $2 billion in unplanned revenue and the $1.2 billion of unspent appropriations resulted in a $3.2 billion cash surplus,” Youngkin said.

He says the right thing to do is give nearly $400 of that surplus back to Virginians in the form of refund checks.

“It’s not our money; it belongs to the hardworking taxpayers of Virginia,” he said.

Job growth remains steady with low unemployment rates and companies like Boeing, Raytheon and Lego making the Commonwealth their new home. But lawmakers on the other side of the aisle say that will change if Virginia moves forward with stricter abortion laws.

“No businesses are going to want to come to the Commonwealth of Virginia and bring their employees if you continue to take rights and liberties away from people, and that’s a problem,” state House delegate Eileen Filler-Corn said.

She says Youngkin should give credit where it’s due.

“In reality, the success should be attributed to democratic leadership - the last two democratic governors as well as President Biden,” Filler-Corn said.

Youngkin wants the remainder of the surplus will be divided among several other funds.

  • $900 million for a rainy day fund
  • $585 million for uses set out in the budget in expectation of unplanned revenues
  • $250 million for the Virginia Retirement Fund
  • $150 million for widening I-64 without adding to the state’s debt
  • $100 million for inflation-driven capital project cost overruns
  • $85 million for economic development projects
  • $131 million for the Water Quality Improvement Fund

To help keep the economy afloat, the governor will work on reducing the cost of doing business and government red tape when the general assembly returns in January.