The Republican-controlled House of Delegates passed a budget plan with $1 billion in tax cuts sought by Gov. Glenn Youngkin (R). Senate Democrats spent on schools instead.
In line with Youngkin’s proposals, the House approved cutting the corporate tax rate to 5 percent from 6 percent, at a cost of some $362 million for the two-year period.The House also accepted Youngkin’s recommendations to increase the standard income tax deduction to $9,000 for individuals and $18,000 for married couples, from $8,500 and $17,000; lower the top marginal tax rate to 5.5 percent from 5.
“The middle ground is removing the governor’s corporate tax cuts. I mean, we start there and move forward,” Scott told reporters Thursday.The Senate version is the most generous with direct aid to local school divisions, boosting funding by more than $1 billion, compared with nearly $383 million in the House plan and $321 million in Youngkin’s, according toAll three spending plans would increase pay for teachers, but the details differ.
The Senate would double the $20 million that Youngkin and the House want to add for preschool programs.Full-time state employees would get a one-time $1,500 bonus under Youngkin’s plan and be eligible for merit-based bonuses. The House and Senate would provide them with an additional 2 percent salary increase, with the Senate version adding a $1,000 bonus on top of that.
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