The Youngkin administration’s tax plan would leave out nearly 80 percent of the over 800,000 taxpayers in Virginia who have incomes below $24,000. Gov. Youngkin’s proposed changes would also sharply reduce state General Fund revenues — the portion of the state budget over which lawmakers have the most discretion and which primarily goes toward funding K-12, higher education, and health and social services.
Lawmakers should advance the policies that provide targeted support for families and preserve shared resources for the long term. To reduce taxes in a more targeted manner with less budgetary impact, state policymakers should consider the Northam administration’s proposal to make the state EITC partially refundable and eliminate the state portion of the sales tax on groceries.