Gov. Glenn Youngkin’s $1 billion tax relief program passed the Republican-controlled House of Delegates on Tuesday, while the governor continued campaigning for measures that now face a tougher ride with the Democratic majority in the state Senate.
The House passed both the individual income tax measures, a cut in corporate income taxes and a deduction targeted at small business.
“Virginians are still overtaxed, they deserve to keep more of their hard-earned paychecks and today’s significant move by the House of Delegates means Virginians are one step closer to additional relief," Youngkin said in a statement.
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Youngkin’s program calls for cutting the top rate for individual income taxes from 5.75% to 5.5%, while boosting the standard deduction from $8,000 to $9,000 for single filers and from $16,000 to $18,000 for joint returns.
His business tax relief includes cutting the corporate income tax rate from 6% to 5% and creating a 10% credit targeted for small business — a feature Youngkin stressed earlier Tuesday in a speech at the National Federation of Independent Business.
“When we see people moving away, they are voting with their feet,” he told the small business-oriented group.
“We’ve got to cut the tax burden,” he said.
Youngkin has repeatedly said tackling Virginia's high cost of living is a top priority. More people move out of the state than move in, often headed for lower- or no-income tax states to the South, which Youngkin has repeatedly said is one of his top concerns — high cost of living.
Democrats say the state has too many unmet needs the $1 billion program could address.
They include some $20 billion in school construction needs and state school staffing standards that have not been fully funded since the Great Recession, Del. Sally Hudson, D-Charlottesville, told the House during a muted debate on the corporate tax cuts.
House Majority Leader Terry Kilgore, R-Scott, said: “We want to give money back to taxpayers, it is not our money, it is theirs."
Youngkin says the state’s projected $3.6 billion surplus and projections of even larger future surpluses mean Virginia can afford tax relief and still have resources needed to make critical investments.
Senate bills that would implement the relief program are pending before the Senate Finance Committee, with its 11-5 Democratic majority, and are on its agenda for Wednesday.
The House bills must still go before that committee, as well.
PHOTOS: Va. General Assembly, January 24
Del. Briana Sewell, D-Prince William, takes a photo of Sen. Jennifer McClellan, D-Richmond, and other members of Delta Sigma Theta after a press conference in the Pocahontas Building Tuesday, Jan. 24, 2023. McClellan and other Democrats spoke of their support for a proposed state constitutional amendment to protect reproductive freedom.
(L-R) Sen. Jennifer Boysko, D-Fairfax, and Sen. Jennifer McClellan, D-Richmond, spoke on their support for a proposed state constitutional amendment to protect reproductive freedom during a press conference in the Pocahontas Building Tuesday, Jan. 24, 2023.
Del. Charniele Herring, D-Alexandria, listens as Sen. Jennifer McClellan, D-Richmond, speaks in support of a proposed state constitutional amendment to protect reproductive freedom during a press conference in the Pocahontas Building Tuesday, Jan. 24, 2023.
Del. Don Scott, Jr., D-Portsmouth, speaks in support of a proposed state constitutional amendment to protect reproductive freedom during a press conference in the Pocahontas Building Tuesday, Jan. 24, 2023.
Del. Marcia Price, D-Newport News, addresses the Virginia House of Delegates in the Virginia Capitol in Richmond, Va. Tuesday, Jan. 24, 2023,
Del. Dan Helmer, D-Fairfax
Del. Marcus Simon, D-Fairfax, addresses the Virginia House of Delegates in the Virginia Capitol in Richmond, Va. Tuesday, Jan. 24, 2023,
Del. Cliff Hayes, D-Chesapeake, takes photos of his colleagues in the Virginia House of Delegates in the Virginia Capitol in Richmond, Va. Tuesday, Jan. 24, 2023,
Del. Don Scott, Jr., D-Portsmouth, speaks against House Bill 1395 as Del. Shelly Simonds, D-Newport News, holds up a copy during a session of the Virginia House of Delegates in the Virginia Capitol in Richmond, Va. Tuesday, Jan. 24, 2023,
Del. Israel O'Quinn, R-Washington, and Del. Sam Rasoul, D-Roanoke, share a lighter moment during a session of the Virginia House of Delegates in the Virginia Capitol in Richmond, Va. Tuesday, Jan. 24, 2023,
Del. Nick Freitas, R-Culpeper, addresses members during the floor session of the House of Delegtates inside the State Capitol in Richmond, Va. Tuesday, January 24, 2023.
(L-R) Lucia Anna “Pia” Trigiani, president of the Library of Virginia Foundation, Del. Betsy Carr, D-Richmond, clap for Librarian of Virginia Sandra Treadway as the Library of Virginia is recognized in the Virginia House of Delegates in Richmond, Va. on the 200th anniversary of the library Tuesday, Jan. 24, 2023. Paul Brockwell Jr., chair of the library board, stands on right.
Sen. Richard Stuart, R-King George
Sen. Steve Newman, R-Bedford, listens to the debate over making a bill to make Eastern Daylight time year-round during a session of the Virginia Senate in the State Capitol in Richmond, Va. Tuesday, Jan. 24, 2023.
Senate Majority Leader Richard Saslaw, D-Fairfax, and Senate Minority Leader Tommy Norment, Jr., R-James City, have a word during a session of the Virginia Senate in the State Capitol in Richmond, Va. Tuesday, Jan. 24, 2023.
Del. Tim Anderson, R-VA Beach, addresses members during the floor session of the House of Delegtates inside the State Capitol in Richmond, Va. Tuesday, January 24, 2023.
Del. M. Keith Hodges, R-Middlesex,and Del. Mike Cherry, R-Colonial Heights, listen during the floor session of the House of Delegtates inside the State Capitol in Richmond, Va. Tuesday, January 24, 2023.
