See below for a press release from The Commonwealth Institute for Fiscal Analysis on the VA Senate Finance and Appropriations Resources Subcommittee rejecting Youngkin’s crazy/irresponsible/regressive proposed “big tax cuts for the wealthy and a tax increase for families with low income.”

Also, see below for a press release from Progress Virginia, explaining that “Governor Youngkin’s tax plan nickels-and-dimes working families to pay for a tax cut for his rich friends, and we’re glad members of the Senate Finance and Appropriations Resource Subcommittee said ‘no way.’”

Governor Youngkin’s Tax Plan: More Money For His Rich Friends, Higher Costs For Everyone Else

Richmond, Virginia—Working families in our community would pay more for everything from a bar of soap to their Netflix subscription under Governor Youngkin’s tax package, while the top 1% of earners would enjoy a nearly $10,000 tax cut. Today, we’re celebrating that the Senate Finance Committee saw through the Governor’s campaign rhetoric and voted SB 632 to continue it to next year. Governor Youngkin’s plan would have cost $3.46 billion, which would have largely funded a tax cut for the wealthiest Virginians. The plan would have raised taxes for households in the bottom 20% of incomes, added a brand-new tax on streaming services, and significantly increased the sales tax, which disproportionately impacts low-income families.

“Governor Youngkin’s tax plan nickels-and-dimes working families to pay for a tax cut for his rich friends, and we’re glad members of the Senate Finance and Appropriations Resource Subcommittee said ‘no way.’” LaTwyla Mathias, Executive Director at Progress Virginia, said. “Governor Youngkin is trying to take the money we need for public schools and affordable housing and give it away to folks who simply don’t need it. He’s made his priorities clear, but we’re not going to let him trade favors with his wealthy donors at the expense of our community. We’re grateful to the Finance Committee for voting SB 632 down, and we will work hard to make sure that these bad ideas don’t show up in our budget.”

Background: 

• Governor Youngkin’s tax plan included provisions to:
• – Lower Virginia’s tax brackets to 1.75%, 2.65%, 4.4%, 5.1%
• – Increase the state sales tax from 4.3% to 5.2%
• – Increase the non-refundable option of the Earned Income Tax Credit from 20% to 25%
• – Expand the sales tax base to “new economy” products like digital downloads and
  streaming services.
• Modeling by the Institute on Taxation and Economic Policy indicates that the top 1% of earners would see an average tax cut of $9,640, while households in the bottom 20% of incomes would see an average tax increase of $44.
• An increase in the sales tax would be an undue burden on the families who can least afford a tax increase; low and middle-income families spend larger shares of their income on necessary goods and services and feel the most impact from a sales tax bump.
• The wealthiest Virginians currently pay the least in taxes as a share of income. A Fair Share  tax, which would affect only 0.4% of tax filers, would raise approximately $1 billion in new state revenue every year that could be spent on schools, affordable housing, and child care needs. 
• 83% of Americans subscribe to at least one streaming service.