This Week From Del. Matt Fariss

House and Senate negotiators working overtime on the state budget announced a deal last Thursday. The final Budget conference report isn’t the original House budget, or the original Senate budget. Instead, it’s a compromise that accomplishes most House Republican goals for the 2022 session.

Tax Relief: With billions upon billions in unanticipated tax revenue, it was clear that the Commonwealth has been over taxing its citizens. Our Republican majority made tax relief one of our top priorities, and working with Governor Youngkin, we’re now able to deliver on most of these efforts.

This budget provides almost $4 billion in tax relief to Virginians when they need it most. It greatly increases the standard deduction from Virginia’s income taxes, with a sunset in 2026 — going from $4,500 to $8,000 for single filers and from $9,000 to $16,000 for joint filers, or roughly $450 for a family of four. It provides a refundable earned income tax credit at 15 percent of the Federal level, and it repeals the state share of the grocery tax, lowering bills by 1.5 percent. It also provides a rebate for $250 per person, $500 per couple. It exempts the first $40,000 of veteran retirement pay from tax, phased in over 4 years. It ends the accelerated sales tax gimmick that penalized retailers for years. Virginia’s employers’ unemployment insurance taxes will not go up, as the budget replenishes the unemployment trust fund.

There’s more to this in the current issue of the Times Virginian newspaper. Support local journalism by purchasing the issue at a local newsstand or subscribing at www.timesvirginian.com/subscriber_services to receive the print edition or view the full article in the e-edition version.