House Democrats are backing a plan to distribute $50 rebates to Virginia car owners as their counter to Gov. Glenn Youngkin’s gas tax rollback proposal.
The plan would put money directly into consumers’ pockets, unlike the Youngkin initiative, which would provide tax relief to fuel distributors, and cost about a third of what Republicans are proposing.
“The governor has refused to protect consumers despite repeated requests for the past month,” House Democratic Leader Eileen Filler-Corn said. “House Democrats have stepped up to fill this void in leadership by offering a plan that benefits Virginia consumers directly at a fraction of the cost to the Commonwealth.”
Youngkin estimates that his plan would cost $437 million from the Commonwealth Transportation Fund, which could damage the Commonwealth’s ability to maintain roads and bridges. After years of studies and negotiations, Virginia is finally in a position to properly fund transportation infrastructure, and Youngkin’s plan risks undoing all of that bipartisan work.
“Gov. Youngkin’s plan is riddled with holes that will do lasting harm to Virginia and the people who live here,” Democratic Caucus Chair Charniele Herring said. “Over the past three months, he has repeatedly demonstrated that he has no understanding of the legislative process or respect for legislators, and never has that been more clear than in his handling of this misguided and ill-conceived plan.”
Democrats have been critical of the Youngkin plan, which he conceded in an interview last week isn’t guaranteed to benefit Virginia consumers.
According to The Commonwealth Institute for Fiscal Analysis, the majority of savings would actually go to out-of-state drivers and the oil industry. In fact, early data from Maryland show that their 30-day gas tax suspension has translated to $8 million in additional profits for the oil industry but just $5 in savings for the average driver.
Youngkin also has declined to declare a state of emergency in order to trigger the Virginia Post-Disaster Anti-Price Gouging Act, which authorizes the attorney general to investigate and prosecute bad actors. Earlier this week, Attorney General Jason Miyares announced another settlement returning thousands of dollars directly to Virginia drivers after last year’s declaration by former Gov. Ralph Northam.
Miyares stated that he was “pleased” by the result. Youngkin’s refusal to act, however, prevents the attorney general from reaching any similar settlements during this current crisis.
Story by Chris Graham
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