The minimum wage and regulatory reform could be on the legislative agenda in 2017.
The 2017 Virginia legislative session convened on Jan. 11, and there are several proposals that could impact small business owners. Here’s a look at them.
Minimum Wage
Two bills have been filed to increase Virginia’s minimum wage. It’s currently $7.25 per hour, but the proposals would hike it to $11.25 or $15 per hour over the next three to four years. NFIB, as well as other business groups like the Virginia Retail Federation and Virginia Chamber of Commerce, oppose these proposals. Payroll decisions—especially wage increases as steep as these—should be left up to the employer.
Sales Tax Collection
Currently, some businesses are required to pay sales taxes to the state for June one month earlier than usual, a scheme that is designed to help balance the budget. A rollback of this accelerated collection schedule has been planned for small and medium-sized businesses, but Gov. Terry McAuliffe recently proposed reversing this rollback in order to help close a $1 billion budget gap. Business groups contend that the accelerated sales tax schedule is unfair and bad for business.
Red Tape Reduction
In better news, legislation has been drafted to rein in the state’s regulatory burden on businesses and entrepreneurs. Under the Red Tape Reduction Act, regulatory agencies would have to tally how many requirements they impose, reduce the overall requirements by 35 percent, and eliminate one requirement for every new one introduced after the 35 percent threshold is met. This would help rein in and cap the number of regulations imposed.
Learn more or suggest red tape that could be cut at https://cutredtapevirginia.com/.
