The Commonwealth of Virginia’s budget ran a $2.6 billion surplus for the fiscal year that ended June 30, and the General Assembly expects Northam to add more than $3 billion in revenues to his forecast for the current year. Those new revenues, compounded in each year of the next two-year budget, are expected to top $13 billion over three years, with about $3.3 billion tucked into reserve funds by mid-2023.
For the upcoming 2022 legislative session, NFIB Virginia will be pursuing efforts to provide tax relief to small businesses, their employees, and families. Some of the proposals NFIB will be advocating for are:
1) no taxation of Paycheck Protection Program, Rebuild Virginia and other COVID-19 related loans for the taxable year 2021;
2) raising the standard deduction; and
3) providing a state income tax holiday for one year for small businesses on the first $250,000 of their income.
Governor-elect Glenn Youngkin campaigned on a package of tax cuts restating recently, “As I’ve said all along, there is ample, ample, ample money to provide tax relief, to bring our cost of living down to Virginians so we can compete more effectively with the states around us.” (Richmond Times Dispatch; 11/22/2021)
NFIB Virginia looks forward to working with Governor-Elect Youngkin in providing tax relief to Virginia’s small businesses.