Fair Taxation Archive
Tax Cuts or Better Education: Which is Better for Rural Virginia?
January 29, 2023
In his speech introducing his 2023 budget, Governor Youngkin said that improving education is a top priority. And that’s why the biggest item in his 2023 budget is... more tax cuts that primarily benefit the wealthy? What’s going on?
Here are the facts: the key provisions of the Governor’s proposal -- which the Republican majority pushed through the House of Delegates last week -- would do the following:
--drop the individual income tax from 5.75% to 5.5%
--drop the business income tax from 6% to 5%.
What does that mean for taxpayers? If your personal income is $40,000, you will save a little over $100 a year. But if it is $2 million, you could save $2,500!
So when the Governor talks about giving Virginians $1 billion in tax cuts, let’s be clear about which Virginians are getting most of that money – the wealthiest.
Youngkin’s “Aspiration” to Cut Taxes Was a Disaster in Kansas
September 16, 2021
Even though he has backed off a plan to eliminate state income taxes, Glenn Youngkin says it is still his “aspiration” if elected governor of Virginia to make deep cuts in state taxes. It may be a good time to remind ourselves of what happened when Kansas tried that nine years ago. The cuts, especially to higher earners and small business owners, pushed by their Republican governor Sam Brownback in 2012 were meant to boost the state’s economy.
They resulted instead in failure in virtually every measure of the state’s economic, educational and social performance. A Republican-controlled legislature eventually had to override Brownback’s veto and repeal the tax cuts in 2017 to avert further disaster. The economist who advised Brownback on those disastrous cuts was Stephen Morris who Youngkin says is now his advisor.
Who wins and who loses from Virginia tax cuts?
September 16, 2021
GOP gubernatorial candidate Glenn Youngkin has made large tax cuts a central part of his campaign. In fact, he first suggested that his ultimate goal was to completely eliminate the state income tax – a tax that funds two third of all Virginia government services! Perhaps because that would have bankrupted the state government, however, Youngkin recently changed his mind. He now advocates a package of tax cuts that would reduce state revenues by “only” $1.8 billion. That certainly sounds reasonable, doesn’t it? And who doesn't like a tax cut?
But should we? In particular, if you live in a rural county, think first about how life will be with smaller, weaker schools, less access to community college education, less money for transportation infrastructure, police etc after the government cuts its budget.
Because the reality is fewer taxes mean fewer services. Services that rural areas need more than urban ones.
The Check Is In the Mail
Child Tax Credit Changes Yield Tax Relief to Rural Families
by Beth Docteur
July 16, 2021
As a volunteer with the AARP Tax-Aide service in rural Page County, Virginia, I have seen first hand the important role of tax credits in helping families with the costs of raising children. Many clients who use the free tax preparation service rely on their annual federal income tax refunds–including refundable credits for which they are eligible–to supplement their household budgets and finance purchases that exceed the reach of families living paycheck to paycheck.