WASHINGTON - Virginia Gov. Glenn Youngkin said Wednesday that taxpayers in the Commonwealth will be getting some of their own money back in the form of tax cuts.
Youngkin said Virginia has a massive surplus during a General Assembly Budget Committee in Richmond – and that taxpayers should get money back.
He said Wednesday he's agreeing to a one-time $1 billion tax rebate, with plans to take up permanent tax relief in next year's state spending plan.
"When we reduce taxes, streamline regulations, restore excellence in schools, back the blue, guess what happens? More people move to Virginia, businesses stay, businesses come, more people go to work and tax receipts for the state go up," said Youngkin.
The centerpiece of the deal is one-time payments of $200 for individual taxpayers and $400 for couples that the senate pushed as an alternative to proposed tax cuts in the corporate and top individual tax rates.
But some top Democrats tell FOX 5 that Virginia should use the surplus for a rainy day.
"Can Virginia afford a tax cut right now? You know my perspective is that we can’t. We’ve underfunded education. We’ve underfunded mental health," said Sen. Creigh Deeds.
If budget negotiators reach an agreement, the governor will call a special session of the general assembly so the House of Delegates and Senate can vote on it. Budget leaders were hopeful of announcing an agreement Wednesday.
Youngkin is expected to propose the next Virginia two-year spending plan in just four months.