Virginia Democrats dump Governor Glenn Youngkin’s proposed tax cuts in favour of onetime rebates

RICHMOND: The Democratic-led Virginia Senate and House of Delegates appropriations committees each presented on Sunday state budget plans that include onetime tax rebates to all taxpayers, countering Republican Gov. Glenn Youngkin’s proposal to provide permanent tax relief on cars.

In a unified approach, both House and Senate committees unanimously passed similar plans adjusting the final year of the state’s two-year budget. The committees proposed giving a $200 rebate to individual income tax filers and $400 to joint filers by October. Youngkin’s proposed amendments would give permanent cuts to lower- and middle-income residents during tax season.

“Working families and individuals need immediate relief -– again, immediate relief,” said Sen. L. Louise Lucas, who chairs the Senate finance committee. “To that end, I do not agree with the details of the governor’s approach.”

The committees’ budget proposals also include making Virginia’s earned income tax credit fully refundable at 20% of the federal credit.

The budget bills next head to their respective chambers. Once passed, the proposals with cross over to the alternate chamber for consideration and then proceed to a conference committee – a small delegation of lawmakers who meet behind closed doors to hash out a compromise.

Lawmakers’ proposed budgets come less than a week after the White House paused federal grants and loans, including Medicaid, which created a frenzy of uncertainty before the directive was blocked by a federal judge and ultimately rescinded.

In a news conference following the Virginia House appropriations committee vote, lawmakers said they have not made significant changes to their budget proposals in light of President Donald Trump’s actions.

“Proposals to cut Medicaid will have to emerge from both the House and the Senate,” Democratic Del. Mark Sickles said, referring to the U.S. Congress. “We’ve got a long way to go on that. We’ll pay close attention. But if they make the drastic cuts that some of some folks have talked about, we would have to come back here to Richmond and deal with that.”

The Virginia House and Senate’s spending proposals are not entirely uniform. Democratic House Appropriations Chair Luke Torian said lawmakers will have to negotiate funding on such matters as skills games, or slot-like betting machines, among others.

“We’ll see what comes out of the conference room,” Torian said.