RICHMOND, Va. — Virginia Governor Glenn Youngkin wants to get rid of personal property taxes on vehicles.
He said as much after presenting his new budget to the General Assembly Wednesday.
“The car tax belongs in the trash can. Not in your mailbox," Youngkin told reporters. "It is by far the most hated tax and it may be the most hated element of living in Virginia. Everywhere I go, I consistently hear, 'Help us get rid of the car tax.'"
Youngkin said getting rid of this tax is something he wants to work with lawmakers on though it’s not included in this budget.
Sweeping tax reform is in store for Virginia if Gov. Youngkin's proposed budget goes through.
The new, two-year plan would lower income tax and raise the state’s sales tax.
On the table: cutting state income taxes by 12% "across the board." To offset these cuts, the governor is proposing a 0.9% increase in the sales tax from 4.3% to 5.2%.
“We have reduced the personal income tax rate across the board so all Virginians will fully participate in this tax reduction," Youngkin said. "We must start recognizing that structurally reducing the tax burdens on Virginians is critical."
Senate Democrats, however, have called Youngkin's budget "disgraceful" and a "slap in the face" to the most vulnerable Virginians.
In a statement, a spokesperson for the Virginia Senate Democratic Caucus said: "We are smart enough and bold enough to know that his speech was the highlight reel and that he omitted the dirty details of his plan. Governor Youngkin believes that ensuring more tax cuts for wealthier individuals is most beneficial…"
Youngkin said he's aware of concerns that a lower income tax and higher sales tax could hurt lower-income Virginians.
“I’m very cognizant of that concern and that’s why we included an increase in the earned income tax credit so that in fact there would be support for Virginians who are on the lower income scale," Youngkin said. "We are bringing, I think, a bold and innovative solution to doing something that must get done for Virginia to compete so that we're on the winning side."
In addition to tax reform, his budget also features funding increases for child care, mental health initiatives and teacher pay.
Nothing is set in stone yet. The budget must be approved by the General Assembly, which convenes on January 10.