Gov. Glenn Youngkin is casting his proposed tax hike on working- and middle-class Virginians as being “part of a bold, necessary path forward.”
The Republican, in his two-year proposed budget presented to lawmakers on Wednesday, signaled that he wants an increase in the state sales tax, from 4.3 percent to 5.2 percent, that he envisions offsetting a reduction in income taxes, which would appear to be of most benefit to the wealthiest state taxpayers, who would see their tax burden decrease by 11.3 percent.
Even with the increase in sales taxes, which disproportionately impact people on the lower rungs of the income scale, because people who make less have to spend a greater percentage of what they make on everyday items that are subject to sales taxes, the Youngkin budget proposal would still need to trim state spending by nearly $900 million over the next two years to get spending and revenues in balance.
So, in effect, Youngkin’s budget takes money from working- and middle-class taxpayers to give to the wealthy, and it will negatively impact state funding for education, transportation and public safety – services that are benefits to all tax brackets, but arguably are more valuable to those on the lower rungs.
Youngkin’s office, in a press release on Wednesday, is calling this the governor’s “Unleashing Opportunity” budget.
“Unleashing Opportunity means allowing Virginians to keep more of their hard-earned money, being prepared to take good jobs with a great education, in safe communities, where they can find the resources they need when they need them, in a state that understands what taking care of God’s natural resources means, with a government that works efficiently for all Virginians,” Youngkin said, in a word salad that would make George Orwell proud.
“Gov. Youngkin’s ‘Unleashing Opportunity’ scheme would primarily ‘unleash’ even more opportunity for the wealthiest Virginians, while saddling hard-working Virginians with higher costs and underfunded schools,” said Rhena Hicks, executive director of Freedom Virginia, a left-leaning nonpartisan advocacy group focused on economic security policies.
“Youngkin’s plan to lower the top tax rate would mark a huge tax handout mostly to wealthy Virginians and special interests, paid for by forcing working people and families to bear a larger burden of higher sales taxes. For a governor who ran on affordability, this budget would be a broken promise to Virginians,” Hicks said.
“If Gov. Youngkin gets his way, Virginia’s K-12 community schools will see a decline in state funding, while special interests get yet another tax break. While Virginians are trying to pay rent and afford their medicine, our budget should prioritize affordability and investment in our communities,” Hicks said.
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Chris Graham
