Democrats Demand Massive Tax Hike on Virginians
by Victoria Manning
Meanwhile, Republicans plan to return a $1.2 billion surplus back to taxpayers.
Virginia Democrats are wasting no time proposing a huge tax increase on Virginians by slapping a 5 percent tax on virtually every service in the commonwealth—despite the state's budget surplus. The massive increase, proposed by longtime Democrat Vivian Watts, would land squarely on small businesses and tradesmen such as plumbers, electricians, landscapers, and barbers.
If HB 1755 passes, Virginians will be required to pay more for dry cleaning, vehicle repair, sporting events, nutrition services, animal boarding, digital services, and much more.
Virginia is already ranked an abysmal 28th on the State Tax Competitiveness Index, which sorts states' taxation competitiveness in different areas such as income tax, property tax, and sales tax. If Democrats get their way, Virginia will certainly decline further in the rankings. The state income tax is one of the worst in the nation and Virginia is one of the few states that taxes its citizens through a personal property tax on vehicle ownership.
Restoration News spoke to Tim Anderson, a former Virginia Delegate who is running for reelection in Virginia's 97th House District. He weighed in on HB 1755, saying, "Services have never been taxed in Virginia and despite Virginia having record surpluses each of the past 3 years, Democrats have the audacity to try to take more money from Virginians to fund progressive causes such as the electric vehicle mandate." Anderson also shared his concerns regarding the impact a tax increase would have, "with inflation crushing Virginians pocketbooks at the grocery store, out of touch Democrats think the best thing to do is take more of your money."
Stark Difference Between the Two Parties
While Democrats propose higher taxes, Republican Gov. Glenn Youngkin is leading the way to provide tax relief for Virginians. Virginia ended fiscal year 2024 with a budget surplus of $1.2 billion and Gov. Youngkin wants to give that back to the taxpayers as tax relief. His proposal creates a car tax credit and eliminates taxes on tips—a nod to President Trump's plan to help the food service industry.
The national average cost of maintaining a home is estimated at $6,413. In Virginia, that will now increase by $320 if Democrats get their way. This additional tax will no doubt negatively impact tradesmen who are already struggling in an economy with high inflation. Levying an additional 5 percent charge onto a bill for a homeowner will certainly cause them to think twice about whether to delay a repair. Optional home improvements such as a bathroom remodel may be reconsidered when every tradesman is required to add 5 percent to their quote.
Watts' bill also references taxation on event attendance. It's already a luxury for many people to go to a concert or sporting event and with a higher cost it would be further out of reach for those already struggling to make ends meet.
Virginia will convene its 30-day 2025 legislative session on Wednesday, January 8th. Restoration News will provide more coverage of other radical proposals coming from the Democrat-controlled General Assembly.
Originally published on Restoration News. Republished with permission from Victoria Manning.
