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The Virginia state House Democrats announced a proposal to give a $50 tax rebate to …
GOP Lawmakers Leave Richmond With Successes In Job Creation, Workforce Preparation, And Tax Reform
Not only did the GOP eliminate frivolous state spending, they also provided pathways towards creating a 21st century workforce, investments in K-12 and higher education, secured Amazon’s arrival in Arlington, and other pro-business programs in the 2019 legislative session.
Republicans In Richmond Tout Leadership And Results Amid Democratic Chaos And Embarrassment
The Virginia House GOP released a video earlier this week touting legislative accomplishments made during this year’s 46-day session on Bank Street in Richmond. Republicans pushed through nearly $1 billion in tax relief, K-12 and college education enhancements, government reforms, and a myriad of other measures amid the racial and sexual scandals blanketing the Commonwealth’s Democrat-led executive branch.
To recap February’s controversies:
Governor Ralph Northam (D) reportedly appeared in a photo in his 1984 Eastern Virginia Medical School (EVMS) yearbook either in blackface or in KKK robes. He first confirmed that he was in the photo – not saying which one – then backpedaled the day following at a very odd press conference, which included an attempt to “moonwalk” in front of reporters and his wife, Pam, telling him “inappropriate circumstances.”
A yearbook photo was also released of Northam while he was a cadet at the Virginia Military Institute (VMI) in the early 1980s. Placed underneath his head shot was his nickname, “Coonman,” a racial epithet.
Embarking on his racial “reconciliation tour” last week, the governor gaslighted America again, calling slaves brought to America in the early 1600s “indentured servants” during an interview with CBS‘s Gayle King, chalking up his blackface photos to “white privilege.” Moreover, the first stop on his tour had to be cancelled following widespread student backlash at Virginia Union University (VUU) continuing calls for his immediate resignation.
Lieutenant Governor Justin Fairfax (D) now faces at least two sexual assault accusations that has Republicans in the House of Delegates proposing an investigation into the matter, and Democrats declining to participate in the bipartisan process.
Dr. Vanessa Tyson, a Scripps College professor, has alleged that Fairfax sexually assaulted her at the 2004 Boston Democratic National Convention. In her statement published by the New York Times, Dr. Tyson said she came forward after the news of Fairfax’s likely elevation to the top political position in Virginia as the governor is embroiled in racial controversy, because it “flooded” her with “painful memories, bringing back feelings of grief, shame, and anger that stemmed from an incident with Mr. Fairfax.”
Meredith Wilson, a student at Duke University in 2000, while Fairfax also attended the North Carolina college, came forth days later with allegations that she was raped by Fairfax in a “premeditated and aggressive” fashion.
Fairfax has called the accusations “false and unsubstantiated,” a “totally fabricated story,” and “demonstrably false.” The lieutenant governor has also accused staffers of the embattled governor for leaking the allegations and engaging in a “vicious and coordinated smear campaign” to derail his pathway to the governor’s office.
Attorney General Mark Herring (D) also admitted to wearing blackface, trying to look like black rapper Kurtis Blow at a party at the University of Virginia (UVA) in Charlottesville in 1980. His admission came just a few days after he called for Northam’s resignation for appearing in racist photos.
Although the calls for Northam to step down from office are far-reaching, many have claimed that officials are backing off of Herring to resign for political reasons.
Nevertheless, amid the national embarrassment, Speaker of the House of Delegates Kirk Cox (R-Colonial Heights) reassured Virginians that although “our diverse Commonwealth has been deeply shaken,” it nevertheless “remains economically vibrant, fiscally sound, safe and secure.”
Finishing off the 2019 legislative session on Sunday morning, Republicans were able to deliver on a key promise to return $976 million from the federal Tax Cuts and Jobs Act (TCJA) to taxpayers.
Under the plan, the Commonwealth’s standard deduction would be increased by 50 percent – the first such change for individual filers since 1989 – rising from $3,000 to $4,500 for individuals, and from $6,000 to $9,000 for couples, primarily benefiting lower and middle-income taxpayers. The plan also preserves existing state law on the deductibility of state and local taxes (SALT), provides additional tax refunds of $110 for individuals and $220 for couples, and much more.
Overall, 70 percent of rebates will go to taxpayers making $100,000 or less.
Despite providing tax relief, House Republicans were also able to secure a five percent pay raise for teachers, which will be included in the final budget.
Primed to increase security in schools across the Commonwealth and protect students, teachers, and staff from harm during emergencies, the GOP also worked to pass a myriad of legislation that created a multi-year blueprint for improving school safety.
Parts of the legislative package would require school counselors to spend at least 80 percent of their time counseling students, mandates that school officials set forth annual safety training in public elementary and secondary schools, develop a case management tools for school threat assessment teams, and provide approximately $12 million to fund school safety initiatives, including additional money for school resource officers (SROs), infrastructure improvements, and technology upgrades.
Built on the 24-point priority recommendation plan from the Select Committee on School Safety, Speaker of the House Cox called the work “groundbreaking.”
The statehouse also passed legislation to lift the age cap on autism health coverage. Under current Virginia law, insurers must cover treatments for autism spectrum disorder (ASD) from ages two through 10, which has placed a difficult burden on families as the average age of diagnosis is between six and seven years of age, according to a report from VCU’s Autism Center of Excellence.
Striking away ASD as the only medical condition subject to coverage limitations based on the age of the patient, the GOP-led legislation means that approximately 10,000 Virginians with autism will have expanded access to healthcare, requiring health insurers to cover treatment regardless of the patient’s age.
While the chaos from the Democratic executive branch may have rendered a stain on the “Virginia Way,” Republicans showed that leadership matters, providing good governance for the Commonwealth’s citizens.
House & Senate GOP’s Tax Plan Puts Money Back Into Virginians’ Pockets
The General Assembly voted this week to approve GOP-led bills to provide nearly $1 billion in tax relief for Virginians.
GOP Advances Middle Class Tax Relief Bill, Democrats Vote with Northam for Tax Hike
Virginia’s middle class is one step closer to much-awaited tax relief.
This morning, Republicans in the House Finance Committee advanced a package of legislation aimed at easing the tax burden on the middle class, blocking Governor Ralph Northam’s planned tax hike, expanding itemization flexibility, and updating Virginia’s tax code to reflect changes in the 2017 federal tax reform law.
Last year, Governor Northam and his Democratic allies floated a tax increase to pay for his spending plan, announced earlier this year. Under Northam’s plan, state spending would increase by $2.2 billion, with $1.2 billion of that paid for through higher taxes on 600,000 middle class families. $1.6 billion of Northam’s proposed spending increases would occur after his term expires.
Republicans have said Northam’s tax increase is “dead on arrival.”
“Since last summer, we have been united against Governor Ralph Northam’s plan to pass on higher taxes in order to finance new state spending,” said Speaker Kirk Cox (R-Colonial Heights) in a press release.
“The House Finance Committee acted today to set aside all of the individual income tax revenue from the federal tax cuts to ensure that we provide tax relief to those affected by federal and state tax law changes.”
The legislative package would direct $950 million into a taxpayer relief fund providing assistance to those impacted by the changes.
HB2529, patroned by Delegate Tim Hugo (R-Clifton), allows taxpayers to itemize regardless of how they pay their federal taxes, increases the standard deduction from $3000 to $4000 for individuals, and from $6000 to $8000 for married couples. Under this legislation, additional revenues arising from economic growth and other sources would be directed towards the Commonwealth’s Tax Policy Fund, to be used for tax relief beginning in 2020.
Hugo’s bill advanced on a party line vote, with all Republicans voting in favor of tax relief and all Democrats backing Northam’s call for higher taxes.
“We will provide immediate tax relief to middle-class Virginians,” said Hugo, the chairman of the Republican Caucus. “Our plan will allow taxpayers to itemize their state taxes regardless of how they file their federal return, increase the state standard deduction across the board, and maintain the important state and local tax (SALT) deduction as it exists today. This protects a middle class family that itemizes from what could be roughly a $805 tax increase or providing an additional $115 in tax relief to a family that chooses the standard deduction.”
The legislation also leaves in place the current state and local property tax deduction (SALT), instead of capping it at $10,000, includes a number of technical corrections, removes a drafting error on mortgage interest deductions, and includes the “GILTI” subtraction to prevent a new tax on foreign income for businesses who locate in Virginia.
Republicans have said this tax relief would not cost the state “one penny” and would leave ample revenues available to fund teacher pay raises and other core government services.
The proposal would provide an immediate $575 million in tax relief for the next year, while still allowing for revenue growth. Current projections show the GOP-led effort will result in $37 million in more revenue in the next fiscal year.
Also advanced today was HB2355, introduced by Delegate Chris Jones (R-Suffolk), which advances Virginia’s tax conformity to December 31, 2019, while directing $952 million in revenue from the changes towards the taxpayer relief fund for next year. This provision would capture 100% of the limited-time tax relief made available through the Tax Cuts and Jobs Act (TCJA).
“Though we recognize that we must act on conformity, we are committed to providing tax relief to those impacted by the federal tax changes. My legislation puts all individual tax revenues from conformity in a ‘Taxpayer Relief Fund’ to ensure that it is not used for state spending,” said Jones, who chairs the House Appropriations Committee. “The House budget that will be released on Sunday will not spend one dime of the increased individual tax revenues from the Tax Cuts and Jobs Act and I am committed to providing tax relief for middle-class families.”
Finance committee chairman Lee Ware (R-Powhatan) urged the Commonwealth to act quickly, with the filing deadline approaching.
“With tax filing season upon us, it is important that we act quickly to move forward on conformity,” said Delegate Ware. “By setting aside all revenue from federal tax reform, as Chairman Jones’s bill does, we can ensure that the General Assembly has an opportunity to debate clearly what we should do with this money. Our plan would guarantee tax relief, while Governor Northam uses it to finance $2.2 billion in new state spending.”
Republicans have unified behind the plan, making tax relief and opposition to tax increases a priority for the legislative session.
The issue is proving to be a sharp dividing line between Republicans and Democrats as session rolls on. While the GOP has largely focused on the impacts of the bill for taxpayers, Democrats remain committed the governor’s talking points, denying that the additional $1.2 billion in revenue will be paid by the middle class.
Earlier this month, Democratic minority leader Eileen Filler-Corn wrongly stated that Northam’s proposal was not a tax hike.
“We also heard some incorrect information from the delegate from Fairfax, stating that Governor Northam’s proposal was a tax increase,” said Filler-Corn, in a floor speech to the House of Delegates, referencing Hugo’s legislation.
“There is no tax increase in the governor’s budget plan,” she continued.
Editorial boards have disagreed with her characterization, with the Richmond Times-Dispatch writing, “Gov. Northam’s tax plan wallops the middle class.”
Considering the example of a two-teacher married household, the Times-Dispatch noted, “Assuming a net income of about $80,000 for our two young educators, a back-of-the-envelope calculation of their state income tax liability suggests it would balloon by at least $700 under the Northam plan.”
While the future of the plan remains to be seen, as session continues, Republican legislators said they would continue to fight for tax relief and oppose the higher taxes proposed by Governor Northam.
Virginia’s regular legislative session is scheduled to continue through mid-February. GOP lawmakers said they hoped changes to tax policy would be made in time for filing session, however some lawmakers have hinted that a special session may be forthcoming, if legislators are unable to agree on changes before the General Assembly adjourns.