February 1, 2024
Key Senate Money Subcommittee Defeats Gov. Youngkin’s Tax Giveaways for the Wealthy
Ashley C. Kenneth, President and CEO of The Commonwealth Institute for Fiscal Analysis (TCI), released the following statement on the defeat of Governor Youngkin’s tax package by the Senate Finance and Appropriations Resources Subcommittee:
“The cornerstone of Governor Youngkin’s proposed budget is big tax cuts for the wealthy and a tax increase for families with low incomes. This proposal is not only geared toward lining the pockets of the wealthiest in Virginia, it would also drain valuable resources from the budget, which could otherwise be used to fund our schools, invest in affordable housing, and more.
“Our analysis of modeling done by the Institute of Taxation and Economic Policy found that under key components of the governor’s tax plan, increasing sales tax, increasing the non-refundable Earned Income Tax Credit option, and reducing income tax rates, households in the top 1% of incomes in Virginia would see an average tax cut of $9,640 while households in the bottom 20% of incomes would see a tax increase of $44, on average.
“Thankfully, the Virginia Senate Finance and Appropriations Resources Subcommittee rejected these harmful and costly tax proposals. More importantly, this is a small victory for Virginia families who deserve a budget that values them by protecting and investing our shared resources in economic support, quality public education, and more rather than big tax giveaways to the wealthy.
“We will continue to fight to clean up our tax code to ensure the wealthy pay their fair share of taxes. And we look forward to continuing our work with legislators and advocates to advance tax policies that lift up working families like strengthening the refundable portion of the Earned Income Tax Credit and creating a Commonwealth Kids Credit.”