Youngkin's Budget Plan: Lower Income Taxes, Higher Sales Tax

Virginia Governor Glenn Youngkin has proposed a state budget that includes income tax cuts and an increase in the sales tax. The plan aims to shift the revenue stream from income to spending, making state finances more resilient. The budget also includes funding increases for mental health, child care, and pay for teachers and state employees, although the pay increases are smaller than in previous years. Youngkin will need to work with Democrats, who will soon control both chambers of the General Assembly, to enact his priorities. The income tax cuts would cost the state about $1.1 billion in the first year and $3.4 billion in the second, partially offset by a 0.9-percentage-point increase in the state sales tax.