Tag: Conformity
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Republicans Retreat From Trump Tax Successes
Virginia’s House Republicans on Friday rolled out proposed changes in the state income tax which backpedal from the signature accomplishment of President Donald Trump’s first year, his tax reform package which supercharged the economy. They would conform Virginia’s taxes to the new federal law only in part (more details here). One of the best policy…
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Higher Standard Deduction Popular With Voters
The Northam Administration’s plans to spend most of the additional revenue created by federal tax reform may not prove popular if the public understands the alternative plans for real tax relief under consideration. Three weeks ago, I complained that a poll from the Judy Wason Ford Center at Christopher Newport University didn’t ask the right…
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Governor Hints At Local Business Tax Reform
On Friday, after skirting the topic in a major address to a business conference in Williamsburg, Governor Ralph Northam told a reporter that “he’s planning to ask the General Assembly to tackle business tax reform,” adding it would be “comprehensive.” The reporter asked about it because of other comments made by Secretary of Finance Aubrey…
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To Get Useful Answers, Ask Correct Questions
It’s all in how you ask the question. The Judy Ford Wason Center for Public Policy at Christopher Newport University has done a pre-General Assembly poll testing various issues that may dominate the 2019 session. The headlines are driven by the favorable and unfavorable rankings (ask me about President Tariff Man this morning as I survey…
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The Push for EITC Cash Grants Accelerates
With the 2019 General Assembly now a handful of weeks away, the main advocacy group for a new cash welfare entitlement in Virginia is ramping up its efforts with various appeals, perhaps testing themes for later use. On Wednesday on its website the Commonwealth Institute for Fiscal Analysis was arguing that the state Earned Income…
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Confusion, Silence Will Earn Business Higher Taxes
“I’m not going to get into it unless anybody wants me to.” So said Kristin Collins, policy development director for the Virginia Department of Taxation, as she neared the end of her November 19 slide presentation on federal tax conformity and its impact on Virginia state taxes. The final handful of slides focused on the business…
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Just Give It Back and Here’s How
A joke making the rounds Wednesday had Governor Ralph Northam agreeing that Virginians did deserve a return of the windfall tax increase flowing to the state due to conformity, but we’d have to take it as Amazon Prime memberships. Don’t expect laughter if the 2019 General Assembly votes out a massive multi-year incentive package for…
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Conformity: Option on Deductions Saves $370M
If Virginia were to allow its taxpayers to keep taking itemized deductions at the state level, even though they take the new higher federal standard deduction, almost 550,000 more would be expected to itemize at the state level, Secretary of Finance Aubrey Layne told state legislators Thursday. Almost 90,000 would be people who were not…
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Virginia Should Double Its Standard Deduction
In 1987, as part of its response to the conformity issues created by President Reagan’s tax cut, the Virginia General Assembly increased the standard deduction available to Virginia taxpayers to $3,000 for an individual and $5,000 for a couple. At some point since the joint filing amount went up to $6,000 to eliminate any marriage…
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VA CPAs Say Conform, Hold Tax Funds for Later
The Virginia Society of Certified Public Accountants (VSCPA) Monday called on the 2019 Virginia General Assembly to conform Virginia tax with recent federal changes, to track and sequester the hundreds of millions of dollars in higher taxes thus generated and to hold those funds for a future tax reform effort. Nobody knows these issues better…