FOR IMMEDIATE RELEASE: December 14, 2021
Office of the Governor: Alena.Yarmosky@governor.virginia.gov
Governor Northam Continues ‘Thank You, Virginia’ Tour, Announces Tax Reduction for Working Virginians
~ Unprecedented economic strength mean Virginia can invest for future and cut taxes ~ Governor proposes ending the state grocery tax, fulfilling 2017 campaign promise; providing earned-income tax credit for working people; offering one-time rebates ~ Working people need help, even as many upper-income professionals got ahead during pandemic ~
RICHMOND—Governor Ralph Northam today continued his ‘Thank You, Virginia’ Tour, announcing that unprecedented economic strength is enabling the Commonwealth to both invest in long-term priorities—by raising salaries for teachers and law enforcement, funding Historically Black Colleges and Universities at record levels, boosting outdoor recreation, and more—while also reducing taxes to help working people.
The Governor noted that many working people have not experienced the booming national economy that has helped many professionals and office-based workers get ahead and build wealth during the pandemic.
“When Virginia cuts taxes next year, it should be done in a way that benefits working people,” said Governor Northam. “Many professionals made it through the pandemic fine, as their work simply moved online. But workers haven’t been so lucky when their jobs require close contact with other people. Some jobs simply can’t move online—restaurant workers, early childhood educators, home care attendants, and others—and we all depend on the people who do this work. Virginia can help working people by eliminating the state grocery tax, providing one-time rebates, and giving a tax break to people who are working.”
Governor Northam is proposing four changes to tax policy:
- Eliminating the state sales tax on groceries. Governor Northam first proposed eliminating this regressive tax on low-income individuals when he ran for Governor in 2017. Virginia’s unprecedented economic strength now makes this possible. The state grocery tax is 1.5%. Most states do not tax groceries. This proposal does not affect local revenues.
- Providing an income tax cut for working families. Governor Northam proposed to make up to 15 percent of the federal earned income tax credit (EITC) refundable for eligible families, which will give a tax break to working families who need it most. Th
I’m always been curious about Virginia’s sports allegiances. Obviously, D.C. sports teams are popular, but what about other teams? For example, are there any Panthers or Ravens fans in Virginia or not as much?
