Virginia Gov. Youngkin Proposes Budget Cutting Income Taxes, Raising Sales Tax

The proposal, which includes an expansion of the sales tax to digital services, faces negotiations in a Democrat-majority General Assembly.

Virginia Gov. Glenn Youngkin proposed a new state budget that would lower income taxes by 12% and raise the state’s sales tax from 4.3% to 5.2%.
The budget also includes an expansion of the sales tax to include digital services, described as 'closing the big-tech tax loophole.'
Youngkin's budget proposal serves as a starting point for negotiations when the General Assembly convenes in January under a Democratic majority.
The governor's budget also plans to invest more in workforce training, job recruitment, and education, including bonuses and raises for teachers.
Despite criticism from some Democratic lawmakers, Youngkin believes his proposals will help draw more people and jobs to the state, while dissuading Virginians from moving away.