https://www.fredericksburg.com...a2-4d2ce9d2d459.html

Problem: Federal Income Tax has raised the standard deduction for joint filers to $24k.
Lots of people will no longer itemize


Virginia state income tax has joint standard deduction at $6k

So if a lot of Virginia taxpayers switch from itemizing to standard deduction, Virginia will pull in a lot more tax dollars.

Virginia forces state tax payers to follow the same deduction method as used in their federal taxes

DEM VA gov Northam wants to keep the windfall and spend it

https://www.fredericksburg.com...a2-4d2ce9d2d459.html

THE federal Tax Cuts and Jobs Act signed into law in December has largely been credited for continuing and expanding the economic growth that the country is experiencing. Many families are seeing larger paychecks and anticipating smaller tax bills next spring when they file their federal income tax returns.

However, a quirk in state law may catch Virginians feeling shortchanged.

By doubling the standard deduction, The Tax Cuts and Jobs Act will lower the federal tax burden for millions of middle-income earners nationwide and hundreds of thousands of Virginia families. The Tax Policy Center estimates that the number of taxpayers who itemize deductions will drop dramatically next year from 45.5 million to 19.3 million nationwide.

In Virginia alone, 1.5 million taxpayers itemized deductions in 2017; many of these are hardworking families trying to make ends meet. These families will benefit greatly by claiming the newly raised federal standard deduction, only to unwittingly watch their state tax bill skyrocket.

Virginia requires taxpayers to take the same type of deduction on the state return as they do on the federal return.

The fact that the Tax Cuts and Jobs Act doubled the standard deduction for a joint filer to $24,000 while the state standard deduction remains only $6,000 creates an incompatibility issue that needs to be immediately addressed by the General Assembly.

This alone will increase taxes on hardworking Virginians by $594 million next year.

Even though this money was accidentally created by chance and not the result of deliberate policy, it seems to be burning a hole in the pocket of Gov. Ralph Northam, who has a plan to spend it instead of returning it to its rightful owners: hardworking Virginians.

But the governor wants to spend every penny of it, including $250 million on expanding the Earned Income Tax Credit.

The truth is that since the Tax Cuts and Jobs Act became law, Virginia’s income tax receipts increased from a projected 3.4 percent to a staggering 6.3 percent. In real dollars, the Virginia Department of Taxation’s income tax collections rose by more than $551.9 million for fiscal year 2018, which ended June 30.

Additionally, state officials estimate that the recent court ruling regarding the collection of internet sales taxes will boost state revenues by as much as $250 million to $300 million a year.

In short, there is enough new tax revenue to fund Gov. Northam’s EITC expansion plans, which should be submitted as part of a proposed budget next year and vetted like every other spending proposal.

When faced with a similar issue after the Tax Reform Act of 1986 was signed into law, Democratic Gov. Gerald Baliles and the Democrat-controlled General Assembly did the right thing by enacting their own tax reforms, which ultimately returned the “windfall” to taxpayers.

Let’s hope Gov. Northam follows in their footsteps.

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https://www.richmond.com/news/...da-892dadd5bb7b.html

Gov. Ralph Northam wants to take roughly $250 million in extra state revenue caused by federal tax cuts and redirect it to low-income families through tax refunds.

Northam said Friday that he’ll propose using about half of the $500 million the state expects to take in annually due to changes in federal tax policy to provide tax relief to an estimated 400,000 low-income workers.

The governor said he intends to ask the General Assembly to make the state’s low-income individuals tax credit refundable. If the change is approved, someone who owes the state $800 but qualifies for a $1,000 credit would get a $200 refund.

The credit, similar to the federal earned income tax credit, is available to tax filers whose gross income falls below federal poverty levels. The credit is currently nonrefundable, which means the state doesn’t pay the difference to a filer who qualifies for a credit worth more than their tax liability.

this makes the tax system a welfare system

Speaking to reporters at the Capitol on Friday, Northam said the change would correct an “imbalance” in federal policy that directs the benefits of the tax cuts mainly to corporations and the wealthy.

“I want to make sure that everyone benefits,” Northam said. “Think of a single parent earning the minimum wage and raising two children. That refund can help pay for child care, transportation and food, and it would reduce the impact of other taxes that hit lower-income family budgets the hardest.”

Republican leaders in the House of Delegates responded icily, saying Northam’s proposal would redistribute a windfall at the expense of other Virginians who could be stuck with higher tax bills if the state doesn’t enact more comprehensive tax reforms. If no other reforms are made, Republicans said, state taxpayers will lose the ability to itemize their deductions.

While announcing the refund proposal, Northam said he intends to boost funding in other areas such as workforce training, schools and adding high-speed internet in rural areas.

“I think an historic surplus is a chance for us to make historic investments in our state and in our people,” he said.

Northam wants to redistribute OUR money rather than addressing an unintended problem. FUCKING ASSHOLE COMMUNIST!

Virginia has been slipping blue for too long; hopefully this will be the impetus to move back red. Money talks...

Let's hope the General Assembly does the right thing...

quote:

Originally posted by 10-7 leo:
Northam wants to redistribute OUR money rather than addressing an unintended problem. FUCKING ASSHOLE COMMUNIST !

Pretty sure that's the entirety of his platform and strategy to keep dems in the Governor's Mansion. All of those receiving the ill gotten gains, who do you think they will vote for in 2021? Giant cash grab intended on buying votes with my money.

Not surprising in the least bit.

I am looking at a significant tax bill if this doesn’t change. For me and many others, the jump in VA taxes more than offsets the reduction in my Federal taxes.

I left VA 2 years ago.The reason was the demographics. I am conservative and Northern VA,big city liberals are now running the state.

I don't see Virginia ever returning to conservative values when the population centers are all blue. I hate it but it is what it is.

Right thinking Virginians (no pun intended) saw this coming a mile away. First it was Terry McAwful and now his Lieutenant Governor. Together with Tim "Batshit-crazy" Kaine, they've managed to turn Virginia into an ideologically criminal commonwealth.

If the economy weren't so strong, Virginia would probably be headed into California-style bankruptcy. Northam and Kaine are doing their utmost best to make sure that happens.

quote:

Originally posted by fpuhan:
Right thinking Virginians (no pun intended) saw this coming a mile away. First it was Terry McAwful and now his Lieutenant Governor. Together with Tim "Batshit-crazy" Kaine, they've managed to turn Virginia into an ideologically criminal commonwealth.

If the economy weren't so strong, Virginia would probably be headed into California-style bankruptcy. Northam and Kaine are doing their utmost best to make sure that happens.

and the reason we had mcawful and northam is because the republican party in VA is too busy shooting itself in the dick,


piss poor candidates, against an entrenched democrap, in the case of Kaine