Money

Money committees differ on tax relief

RICHMOND, Va. (WDBJ) – The state budget will be a major issue in the second half of the General Assembly session. And the money committees in the House and Senate have now released completing plans, which offer different approaches to tax relief.

Republicans in the House of Delegates are all in with the proposals of Governor Glenn Youngkin: doubling the standard deduction, repealing the grocery tax, providing tax breaks for veterans and teachers, and providing tax rebate checks to Virginians.

“Given this unprecedented growth in revenues, we approached this budget intent on spending not just because tax revenue was available, but based on spending choices on what is needed,” said House Appropriations Chair Del. Barry Knight (R-Virginia Beach).

The plan advanced by the Senate Finance Committee also calls for ending the grocery tax, and sending out rebate checks.

But the size of the tax relief package is substantially smaller in the Senate, leaving more room to address other priorities.

“When thinking about our collective resiliency, I reflect on promises kept, especially the promise that when revenues returned from the decline of the great recession that we would restore items that had been lost,” said Senate Finance Chair Sen. Janet Howell (D-Arlington). “Today, I’m pleased to tell you that we are on the path to restoration.”

Governor Youngkin thanked members of both committees in a statement, but said the Senate plan does not include “nearly enough tax relief.”

The governor said he will meet with House and Senate leaders later this week. And the budget negotiators will get to work with the goal of delivering a budget both sides can agree on early next month.

Copyright 2022 WDBJ. All rights reserved.


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