From the VA House Democratic Caucus:
Republicans Pass Their Own Trump-Style Tax Plan in House of Delegates
Hugo tax bill provides little relief for working-class Virginians
Richmond (February 5, 2019) – On Tuesday, House Republicans aligned themselves with the unpopular and irresponsible tax plan that President Trump pushed through Congress, bringing national politics to Virginia. HB2529, introduced by Delegate Tim Hugo, passed with all Republicans voting for it and all Democrats voting against.
House Republicans have purported that their bill would provide tax relief to working Virginians. On the floor today, House Democrats pointed out the flaws in the Republicans’ plan.
Delegate Mark Sickles countered the Republicans’ false promises, saying “Forty percent of the Virginians who are paying more as a result of the Trump tax plan make $50,000 and below, but this bill only helps 18 percent of them.”
Delegate Vivian Watts, who has provided multiple charts on the floor to highlight this discrepancy, followed up on Delegate Sickles’s remarks. She said, “These are the people who are paying the most in the tax increase, yet we’re giving them the crumbs that trickle down.” Delegate Watts also called Republicans’ claim that middle class families will receive an $800 tax cut from their plan a “bait and switch.”
Delegate Mark Levine pointed out that Hugo’s plan would also decouple Virginia’s code from the Global Intangible Low Tax Income (GILTI) provision, which would benefit big corporations who that avoid paying Virginia taxes by shifting profits to subsidiaries or other jurisdictions. Delegate Levine said, “I don’t know too many teachers who have foreign-sourced global intangible low tax income.”
Delegate John Bell made an impassioned floor speech about the need to make much-needed and long-delayed investments in schools and for public workers like teachers and correctional officers. The Hugo bill would eviscerate these investments from the budget.
House Democratic Caucus Communications Director Kathryn Gilley said, “Throughout session, House Democrats have advocated for tax relief for working class families who are often forgotten in Washington and Richmond. It’s unfortunate that the House Republicans are bound to perpetuate the reckless Trump policy that disadvantages low- to moderate-income Virginians.”