Virginia GOP governor: taxes are too high

(The Center Square) – Virginia recorded a budget surplus of nearly $2 billion at the close of the fiscal year, which Gov. Glenn Youngkin believes is a sign taxpayers are forced to give too much money to the government.

“While I am pleased that our additional revenue can be reinvested in Virginia, the Commonwealth’s general fund revenue surplus confirms that Virginians have been overtaxed for way too long,” Youngkin said in a statement.

“As inflation hits another 40-year high, I’m proud that our budget provides almost $4 billion in tax relief to Virginians, the largest tax relief in the Commonwealth’s history,” the governor added. “We have a lot of work left to do to recover from the pandemic, but Virginia’s economy is demonstrating promising economic and company growth with major companies such as Boeing, Raytheon, and LEGO moving their headquarters to Virginia.”

The 2022 fiscal year ended with a surplus of $1.94 billion in the general fund. Revenue collections rose about 16.3%, which was nearly double the projected 8.5% growth.

Payroll withholding tax and sales tax revenue, which make up more than two-thirds of the state’s revenue, were $193.5 million above revenue, which was 1% above forecasts. Nonwithholding income tax payments were more than 30% above expectations and tax refunds were more than $280 less than expected, which positively affected the state’s bottom line. Corporate income tax collections rose by more than 30%, but were slightly less than the growth expectation.

“Fiscal 2022 was an extraordinary year for revenues and finished strong,” Secretary of Finance Stephen Cummings said in a statement. “However, there are a number of critical economic issues that we will continue to watch very closely as we put our plan together for the future. We are encouraged by the continuing strength of payroll withholding and retail sales taxes, which increased by 9.5 percent, indicating that Virginia’s underlying economic foundation is strong.”