As we approach this year’s presidential election, the stakes could not be higher — not just for the future of our country, but also for Virginia’s financial future.
Despite national headwinds, Virginia has maintained a steady economic course under the leadership of Governor Youngkin. His efforts to recruit industry, cut red tape, and foster growth have left the Commonwealth in a comfortable economic position with promising state revenue forecasts.
Whether or not we remain on our current path will be heavily dependent on who sits in the Oval Office and which party controls Congress. With the looming expiration of the 2017 Tax Cuts and Jobs Act (TCJA) at the end of 2025, the outcome of this year’s election will have an impact on state revenue and tax policy.
Enacted during the Trump administration, the TCJA lowered individual income tax rates, nearly doubled the standard deduction, and expanded the child tax credit. These cuts increased take-home pay and eased financial burdens for families. Unless the incoming Congress and president renews or revises many of these soon-to-expire TCJA provisions, already inflation-burdened middle-class families and small business owners in Virginia will be hardest hit by increased tax obligations.
While these TCJA tax cuts aren’t set to expire until the end of 2025, we cannot neglect the anticipated effects of the upcoming election as we approach the 2025 General Assembly session.
The “Virginia playbook” Governor Youngkin spoke of during the recent Joint Money Committee meeting is working. Families in Virginia will see almost $8 billion in one-time and ongoing tax relief by the end of Governor Youngkin’s term while major investments have been made in key areas. We have proven that we can provide financial relief for families while also supporting our law enforcement, public schools, mental health system, and other bipartisan priorities.
The choices we make at the ballot box this November will not only have implications for our national economic direction, but they will certainly influence our economy at home. Regardless of the national outcome, it’s crucial that we stick to the playbook in the upcoming legislative session. By proactively anticipating federal tax policy changes, we can protect middle-class Virginians, maintain revenue, and ensure that the Commonwealth remains an attractive environment for families and small businesses — regardless of what happens in Washington.
Wendell Walker is a member of the House of Delegates from Lynchburg. He is a Republican.
